The income from operations stood at $31.1 million, down from $35.4 million in the same period last year. Net income rose to $11.4 million, or $1.52 per diluted share, compared to $10.4 million, or $1.41 per diluted share, in the previous year. Adjusted net income saw a significant increase to $19.0 million, or $2.54 per diluted share, from $14.3 million, or $1.93 per diluted share, in the prior year, Rocky Brands said in a press release.
Rocky Brands, Inc, has reported FY24 net sales of $453.8 million, down 1.7 per cent YoY, though adjusted sales grew 5.3 per cent.
Gross margin improved to 39.4 per cent, while income from operations fell to $31.1 million.
Net income rose to $11.4 million, or $1.52 per diluted share.
Retail sales surged, and Q4 saw strong momentum, driven by increased marketing and demand for Durango and XTRATUF brands.
The wholesale segment saw a 7.0 per cent decline in sales to $313.3 million, but adjusted for non-recurring items, it posted a 0.7 per cent increase. Retail segment sales grew by 8.5 per cent to $126.9 million, and excluding the distributor model transition, the increase was 10.2 per cent. Contract manufacturing segment sales surged by 72.2 per cent to $13.6 million, with an adjusted increase of 202.2 per cent.
The gross margin improved to 39.4 per cent of net sales from 38.7 per cent, driven by a 190 bps rise in wholesale and a higher share of retail sales, which carry stronger margins. Operating expenses rose to $147.9 million, or 32.6 per cent of net sales, from $143.2 million, or 31.0 per cent, in 2023. Adjusted operating expenses were $141.2 million, or 31.1 per cent of net sales.
Basic income per share was $1.53, slightly higher than the $1.42 reported last year, while diluted income per share was $1.52, compared to $1.41 in the prior year.
“Our sales trends accelerated as the holiday season progressed led by strong consumer demand for our Durango and XTRATUF brands, with particular strength in our direct-to-consumer channel which fuelled our highest ever sales quarter for our Retail reporting segment,” said Jason Brooks, chairman, president and chief executive officer at Rocky Brands.
“We are pleased with our finish to the year, which included recurring wholesale sales returning to growth and retail sales increasing over 15 per cent for the fourth quarter. Increased marketing helped fuel our top-line performance as we brought spending back in-line with historical levels after under investing in demand creation in the year ago period. Our fourth quarter momentum has carried into early 2025, providing us with a good start to the year. While the macroeconomic environment remains uncertain, we are cautiously optimistic about our near-term prospects and confident that the substantial reduction in our debt provides us with the financial flexibility to invest in growth and deliver enhanced earnings and greater value for our shareholders,” added Brooks.
Fourth quarter (Q4) financial
In Q4 FY24, Rocky Brand’s net sales declined by 1.7 per cent to $453.8 million compared to the previous year. However, the gross margin improved by 70 basis points, reaching 39.4 per cent of net sales versus 38.7 per cent in the prior year. Income from operations stood at $31.1 million, down from $35.4 million in the same period last year.
The net income rose to $11.4 million, or $1.52 per diluted share, compared to $10.4 million, or $1.41 per diluted share, in the previous year. Adjusted net income saw a significant increase to $19.0 million, or $2.54 per diluted share, from $14.3 million, or $1.93 per diluted share, in the prior year.
Fibre2Fashion News Desk (SG)
