Thanks to the implementation of several measures to cut cost and boost growth - including the update of its manufacturing capabilities in 2017 - Rocky Brands' retail sales recorded double-digit growth during the first quarter of 2019, while the wholesale business posted a solid gain. The gross margin and profits also improved.
The management said the company's overall performance continues to be driven by the implementation of these restructuring efforts, in particular by introducing compelling products, expanding awareness and demand for its brands and direct channels, providing enhanced retailer support, and capitalizing on its production capabilities to increase sales and manufacturing efficiencies.
Revenues for the fourth quarter rose by 7.4 percent from the year-ago quarter to $67.2 million, including a 4.8 percent increase in wholesale revenues to $42.4 million, and an 18 percent jump in retail sales to $15.4 million. Military segment sales inched up by 2.5 percent to $8.1 million.
Overall, the gross margin rose by 0.7 percentage points to 34.9 percent, driven by higher retail and military margins, combined with a lower percentage of military sales, which carry lower gross margins than wholesale and retail sales. Net income climbed by 10.9 percent to $3.6 million.