Rocky Brands has signed a definitive purchase agreement with Kommonwealth to acquire certain assets including the Creative Recreation trademark, a footwear brand based in California, best known for its popular crossover between athletic sneakers and dress shoes. The acquisition, for a total purchase price of around $11 million, will be funded by Rocky Brands' existing cash balances and funds available under its existing revolving credit facility. Rocky Brands, based in Nelsonville, Ohio, designs, manufactures and markets footwear and apparel sold under a portfolio of brand names including Rocky, Georgia Boot, Durango, Lehigh, and the licensed Michelin Footwear brand .

The acquisition is expected to be completed by Dec. 2013 and to be accretive to earnings in 2014. Rocky Brands said that the objective of the acquisition is to combine its own strong operating platform and access to capital with Creative Recreation's design expertise, with a prospect of expanding the brand's business both domestically and overseas.

For the third quarter of 2013, Rocky Brands reported a sales decline of 3.3 percent from the same period in 2012, with net sales in this year's third quarter of $70.2 million. Profits also slipped. The company reported net income of $2.9 million for the quarter, versus net income of $5.4 million for the third quarter of 2012. Consumers continued to respond favorably to many of the company's product innovations but sales of its branded work, outdoor and commercial military footwear proved to be more challenging than expected.

For the first nine months of 2013, sales increased by 7.7 percent to $183.3 million as compared to the first nine months of 2012. The company reported net income of $5.6 million for the nine-month period, versus net income of $6.3 million for the first nine months of 2012.

Wholesale revenues for the third quarter decreased by 8.8 percent to $57.4 million, driven primarily by lower outdoor and commercial military sales, partially offset by higher work and western boot sales. Retail sales were $9.6 million in both the third quarter of 2013 and 2012. Sales for the military segment in the third quarter were up to $3.2 million compared with no military sales at all in the third quarter of 2012.

The gross margin for the third quarter of 2013 was 32.4 percent of sales against 36.1 percent for the same period last year. The company said that the 3.7 percentage point decrease was primarily driven by increased military segment sales, which carry lower gross margins than its wholesale and retail segments, and a lower wholesale gross margin than a year ago resulting from lower-margin private label. Income from operations in the latest quarter was $4.4 million, or 6.3 percent of net sales, compared with $7.9 million, or 10.9 percent of net sales, in the third quarter of 2012.

The company said that the outlook is prudent for the remainder of this year, as the combination of macroeconomic headwinds and mild fall temperatures has created a difficult selling environment for different areas of the company's business in the second half of 2013.