Rocky Brands Reports Slight Decline in Net Sales but Improved Profitability for Fiscal Year 2024

Rocky Brands, Inc. reported a slight decline in net sales for the fiscal year ending December 31, 2024, with total revenues of $453.8 million, down 1.7% from $461.8 million in 2023. The decrease was primarily attributed to a drop in the Wholesale segment, which saw sales fall by 7% to $313.3 million, influenced by non-recurring sales from the previous year and the divestiture of the Servus brand. In contrast, the Retail segment experienced an 8.5% increase in sales, reaching $126.9 million, driven by growth in the Lehigh CustomFit platform and e-commerce initiatives. The Contract Manufacturing segment also saw significant growth, with sales rising 72.7% to $13.6 million, bolstered by a new multi-year contract with the U.S. Military.

Despite the decline in sales, Rocky Brands improved its profitability metrics. The company reported a net income of $11.4 million, or $1.52 per diluted share, representing a 9.6% increase from the previous year's net income of $10.4 million. This improvement was supported by a reduction in interest expenses, which fell by 19.8% to $17 million, following a refinancing of the company's debt that resulted in lower interest rates. The gross margin also increased to 39.4%, up from 38.7% in 2023, attributed to a favorable product mix and improved sourcing costs.

Operationally, Rocky Brands continues to focus on strategic growth initiatives. The company has expanded its product offerings and market reach, particularly in the Retail segment, where it has enhanced its e-commerce capabilities. As of December 31, 2024, the company operated over 10,000 retail locations across the U.S. and Canada, with ongoing efforts to penetrate international markets. The employee headcount stood at approximately 2,535, with a significant portion engaged in manufacturing operations in the Dominican Republic, Puerto Rico, and China.

Looking ahead, Rocky Brands aims to leverage its strong brand portfolio, which includes well-known names such as Muck, Rocky, and Georgia Boot, to drive future growth. The company plans to continue expanding its presence in both domestic and international markets while enhancing its e-commerce platform. However, management acknowledged potential challenges, including macroeconomic pressures and changing consumer preferences, which could impact sales and profitability. The company remains committed to monitoring these factors closely as it executes its growth strategy.