Rocky times for Rocky Brands
Despite higher overall sales American footwear and apparel designer and manufacturer has reported increased losses for the fourth quarter and full year 2007, as results were impacted by weak sales in its outdoor and Western footwear segments.
Fourth quarter net sales increased 2.8% to $72.5 million, up from $70.6 million in the fourth quarter of 2006; however, its net loss rose to $23.6 million, versus a net loss of $0.08 million for the equivalent prior-year period.
Full year results proved no more positive as despite 4.5% higher net sales of $275.3 million, up from $263.5 million in 2006, the company posted a net loss of $23.1 million, compared with net income of $4.8 million in 2006.
Mike Brooks, chairman and chief executive, commented, “Our fourth quarter performance was highlighted by positive gains in our retail business combined with the initial shipments of footwear to the military. Retail sales rose 31.5% as we continued to add more national accounts and increase our share of the market. However, we experienced softness in our outdoor and western footwear segments which negatively impacted our sales and earnings. We are taking steps to reverse the trends in these categories and improve our overall profitability in 2008.”
The company’s brand names include Rocky Outdoor Gear, Georgia Boot, Durango, Lehigh, and the licensed brands Dickies, Zumfoot and Michelin.
