Rocky trims 1Q loss on sales gain
Stronger sales and tighter expense controls helped footwear maker Rocky Brands Inc. halve its loss in the first quarter, the company told investors late Thursday.
The Nelsonville-based boot maker said it lost $560,744, or 10 cents a share, for the first three months of the year, compared with a loss of $1.1 million, or 20 cents a share, a year earlier.
Revenue grew 12 percent to $56.1 million from $50.1 million a year earlier on a spike in military sales. Otherwise, Rocky Brands (NASDAQ:RCKY) saw its wholesale division increase revenue 5 percent while retail sales dropped marginally.
Profit margins tightened in the quarter but Rocky Brands chopped overhead expenses by nearly 10 percent in part through pay and benefit cuts and reduced bad-debt expenses.
CEO Mike Brooks said the company’s results surpassed internal and external projections despite the red ink, typical in a slow season of the year.
“However, we are confident that the steps we have taken to rightsize both our wholesale and retail platforms, combined with our initiatives aimed at expanding revenues will result in improved profitability year-over-year during the remainder of this year,” Brooks said in a release.
Rocky produces and markets footwear under the Rocky Outdoor Gear, Georgia Boot, Durango and Lehigh names along with licensed brands Dickies, Zumfoot and Michelin.
The company last year earned $1.17 million on $229.5 million in revenue.
Filed under: economics by Finance Boss