Rocky Brands has announced third-quarter sales of $70.0 million, down by 3.7 percent from the third quarter of 2014. While wholesale revenues decreased by 12.0 percent to $54.7 million, retail sales rose by 8.4 percent to $10.3 million. The net income fell by 42 percent to $1,803,667, due to the lower revenues as well as to lower margins. The Rocky brands include Rocky, Georgia Boot, Durango, Lehigh, Creative Recreation and a footwear license with the Michelin brand.
The U.S. company attributed the disappointing quarterly results to softer than expected demand in its work and hunting categories. Warm temperatures, combined with challenging retail store traffic and weakening local economies, led to lower levels of reorders for many of the company's waterproof and insulated boot collections. This was partially offset by continued growth for the company's Durango brand. There was also a major sales increase in the military segment, up to $5.1 million from $1.1 million in the year-ago period.
The gross margin was off to 31.6 percent of sales from 33.4 percent of sales for the same period last year, due primarily to the lower margins generated by the military sector. Income from operations declined to $2.9 million, from $4.9 million in the third quarter a year ago.