Rocky Brands reports strong second quarter

United States
Published:  06 August, 2021
Credit: Georgia Boot

The U.S. headquartered developer and manufacturer of outdoor, work, western and military footwear has achieved a net sales increase of 134.2% to US£131.6 million compared with US$56.2 million in the second quarter of 2020, which includes US$50.1 million from the performance and lifestyle footwear business.

Wholesale sales for the second quarter increased 195% to US$101.1 million compared with US$34.3 million for the same period in 2020. Retail sales increased 36.8% to US$22.3 million compared to US$16.3 million for the second quarter of 2020. Contract Manufacturing segment sales, which now include contract military sales and private label programs, increased 45.6% to US$8.1 million compared to US$5.6 million in the same period of 2020.

Gross margin in the quarter was US$49.2 million, or 37.4% of net sales, compared with US$19.5 million, or 34.6% of net sales, for the same period last year. Adjusted gross margin in the second quarter of 2021, which excludes a US$2.3 million inventory purchase accounting adjustment, was US$51.4 million, or 39.1% of net sales. Adjusted gross margin in the second quarter of 2020, which excluded approximately US$1 million in expenses related to the closure of the company’s manufacturing facilities due to Covid-19, was US$20.4 million, or 36.4% of net sales.

Income from operations for the second quarter of 2021 increased 172.2% to US$8.4 million, or 6.4% of net sales compared to US$3.1 million or 5.5% of net sales for the same period a year ago. Adjusted operating income for the second quarter of 2021 was US$13 million, or 9.9% of net sales, compared to adjusted operating income for the second quarter of 2020 of US$4.1 million, or 7.3% of net sales.