Rocky Brands saw its sales increase by 7.1 percent to $244.9 million in 2013, with a strong performance in Rocky and Georgia Boots work footwear because of the cold and snowy conditions in many parts of the U.S. at the end of the year. The American company also experienced strong demand for its Durango boots.
Overall sales grew by 11.4 percent in the work segment and by 21.2 percent in the Western segment.
The order backlog is up by more than eight percent for the next autumn/winter season. Further growth is expected in 2014 following its acquisition last Dec. 13 of Creative Recreation, an American supplier of sneakers that are also sold in Europe. It did not make any contribution to the group's results, which showed an increase of only 5.7 percent to $61.6 million in the fourth quarter.
The wholesale turnover rose to $47.7 million in the quarter from $46.2 million in the year-ago period, but while footwear was up by $3.8 million, or by 9.0 percent, driven by a 20 percent increase in work boots, apparel was down by $2.3 million because of its transition to a licensing model in the early part of the year. Sales of Rocky hunting boots were up by a double digit.
Retail revenues rose to $12.9 million from $12.0 million in the quarter. Increased sales to the U.S. military led to a drop in the gross margin to 35.4 percent from 36.0 percent in the last quarter of 2012. The net profit for the period was off by 28.0 percent to $1.8 million.
Rocky's net income declined last year to $7.37 million from $8.85 million in 2012. It reached $7.9 million excluding expenses related to the acquisition of Creative Recreation.