Durango Western Boot Label Drives Rocky Q1
Shares for Rocky Brands were up nearly 24 percent in after-market trading on Tuesday following a return to positive sales gains in the first quarter driven by its Durango western boot brand.
According to the Ohio-based footwear company, net sales in Q1 increased 2.2 percent to $112.9 million compared with $110.4 million in the first quarter of 2023. Excluding the Servus brand, which was divested in March 2023, sales increased 7.6 percent in Q1.
The company reported first quarter net income of $2.6 million, or $0.34 per diluted share, compared to a net loss of $0.4 million, or $0.05 per diluted share, in the first quarter of 2023.
By segment, wholesale sales for the first quarter of 2024 were $79.8 million compared to $80.1 million for the same period in 2023. Retail sales in the period increased 3 percent to $30.4 million compared to $29.5 million for the same period last year. And contract manufacturing sales, which include contract military sales and private label programs, were $2.7 million in Q1 compared to $0.9 million in the prior year period.
Jason Brooks, chairman, president and chief executive officer of Rocky Brands, said in a statement that the quarter was driven by double digit gains at its Durango and Xtratuf brands.
“Our first quarter performance represents a solid start to the year,” Brooks said. “Cost saving initiatives implemented throughout 2023 allowed us to redeploy a higher portion of our spend toward advertising programs which fueled stronger than expected growth and meaningful expense leverage. While the macroeconomic outlook remains uncertain, we continue to be cautiously optimistic that the company is well positioned to generate enhanced profitability and increased shareholder value as 2024 unfolds.”
No guidance for the second quarter was given.
Prior to Q1’s swing to revenue gains, Rocky Brands was dealing with several quarters of losses. In February, the company reported that it ended the fourth quarter of 2023 down 9.3 percent to $126.0 million. Net sales also decreased 25 percent to $461.8 million for the full fiscal year 2023 compared to 2022.
The turnaround could be driven by the increase in demand of western footwear styles. In the U.S., Western boots totaled $888.5 million in sales in 2023, up 30 percent from 2019, according to Circana’s consumer tracking data.