Rocky Brands, Inc. announced its financial results for the third quarter ended September 30, 2024, reporting a net sales decrease of 8.8% to $114.6 million compared to $125.6 million in the third quarter of 2023. Diluted earnings per share (EPS) for the quarter were $0.70, down from $0.93 in the prior-year period, with adjusted diluted EPS at $0.77 compared to $1.09.
Despite the overall sales decline, the Retail segment demonstrated strength, with sales increasing 9.2% to $26.8 million, driven by double-digit growth in the Durango brand and the Lehigh CustomFit safety footwear platform. Wholesale sales, however, decreased by 15.7% to $84.0 million, primarily due to cautious consumer spending and warm, dry weather conditions.
The company's gross margin improved by 110 basis points to 38.1% of net sales, attributed to a higher mix of Retail segment sales which carry better margins. Total debt, net of unamortized debt issuance costs, decreased by 29.7% year-over-year to $150.3 million, reflecting the benefits of a debt refinancing completed in April 2024 and ongoing repayments, which also led to a reduction in interest expense to $3.3 million from $5.8 million.
Inventories at the end of the quarter were $171.8 million, an 11.8% reduction from the same period a year ago. Management indicated that recent brand and marketing investments, along with an improved capital structure, position the company for sustainable, profitable growth, despite the transitory softness observed in consumer spending.
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