Military boot contract cheers Rocky Brands
22/02/2013
The contract is to supply “hot weather” combat boots, and will be worth between $3 million and $5 million in the first year.
Shipment of the boots is expected to begin in March 2013. The contract includes an option for four additional years on the same terms.
CEO David Sharp said: “Our fourth quarter performance reflects the challenges facing the more weather sensitive areas of our business as a second consecutive winter of mild temperatures tapered demand for insulated, waterproof boots.
“Weather has always played a role in Rocky Brands fortune. A 2005 acquisition of EJ Footwear significantly reduced the company’s reliance on cold wet hunting seasons. Since the acquisition, we have taken steps to organically diversify our operations further indicate the impact of weather on our results.”
Sales for the fourth quarter were $58 million compared to $64 million for the corresponding period a year ago. The company reported net income of $8.9 million for the full year 2012, compared with $8.3 million for 2011.
“In an effort to mitigate the impact of weather and further diversify our operations, we’ve been developing new product lines with good success evidenced by the increase in Durango lifestyle and western sales which were both up 44% in 2012,” added Mr Sharp.
Share this story:
