Rocky Brands ( (RCKY) ) has released its Q4 earnings. Here is a breakdown of the information Rocky Brands presented to its investors.
Rocky Brands, Inc. is a prominent designer, manufacturer, and marketer of high-quality footwear and apparel, operating in the retail sector with a diverse portfolio of well-known brands such as Rocky, Durango, and XTRATUF.
In its latest earnings report, Rocky Brands announced a modest increase in fourth-quarter sales by 1.7% to $128.1 million, alongside a significant improvement in gross margin, which rose by 120 basis points to 41.5%. The company also revealed a substantial reduction in total debt by 25.7% by the end of 2024 and introduced a new share repurchase program.
Key financial highlights include a fourth-quarter adjusted net income increase of 22.7% to $8.9 million, or $1.19 per diluted share, despite a $4.0 million trademark impairment charge. For the full year, net sales slightly decreased by 1.7% to $453.8 million, yet adjusted net income rose by 32.9% to $19.0 million, or $2.54 per diluted share. The company’s retail segment showed strong performance with a 15.3% increase in sales during the fourth quarter.
Looking ahead, Rocky Brands remains cautiously optimistic about its near-term prospects, buoyed by strong consumer demand and a strategic focus on growth. The company’s significant debt reduction provides financial flexibility to invest in future growth opportunities and enhance shareholder value.