Rocky Brands, Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing a decline in net sales and a mixed performance in profitability compared to the previous fiscal period. Total net sales for the third quarter were $114.6 million, down 8.8% from $125.6 million in the same quarter of 2023. For the nine months ended September 30, 2024, net sales decreased 3.0% to $325.7 million from $335.9 million in the prior year.

The company's gross margin for the third quarter was $43.6 million, representing 38.1% of net sales, an increase from 37.0% in the same period last year. For the nine-month period, gross margin was $125.8 million, or 38.6% of net sales, compared to 38.1% in 2023. Operating expenses for the third quarter rose to $33.6 million, or 29.3% of net sales, up from 25.7% in the prior year. However, for the nine months, operating expenses decreased to $103.3 million, or 31.7% of net sales, from 31.9% in 2023, attributed to restructuring and cost-saving initiatives.

Income from operations for the third quarter was $10.1 million, down from $14.3 million in 2023, while for the nine months, it increased to $22.6 million from $20.6 million. Net income for the third quarter was $5.3 million, compared to $6.8 million in the same period last year. However, net income for the nine months improved to $6.6 million from $3.7 million in 2023.

The company’s total assets as of September 30, 2024, were $475.0 million, with total liabilities decreasing to $246.8 million from $255.8 million at the end of 2023. Long-term debt also decreased significantly to $141.9 million from $170.5 million at the end of the previous year. Total shareholders' equity increased to $228.3 million, up from $223.6 million at the end of 2023.

Strategically, Rocky Brands completed the sale of the Servus brand and related assets for approximately $19.0 million in March 2023, with $1.7 million received during the nine months ended September 30, 2024. The company also refinanced its debt in April 2024, establishing a new $175.0 million asset-based lending credit facility and a $50.0 million term loan facility.

Overall, while Rocky Brands faced challenges in sales, it demonstrated improvements in profitability metrics and reduced debt levels, reflecting ongoing strategic adjustments.