NASDAQ$RCKY

Rocky Brands Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported a decrease in net sales but an increase in gross margin and income from operations compared to the same period last year, while also highlighting debt refinancing and cost-saving initiatives.

Rocky Brands reported a slight decrease in net sales for Q2 2024, but experienced growth when excluding certain non-recurring sales. The company saw improvements in gross margin and operating income, driven by wholesale gross margins and a higher percentage of retail net sales. Debt refinancing and cost-saving initiatives are expected to generate further savings.

  • Net sales decreased by 1.6% to $98.3 million, but increased by 6.1% excluding certain non-recurring sales.
  • Gross margin increased to 38.7% of net sales, driven by improvements in wholesale gross margins and a higher percentage of retail net sales.
  • Operating expenses decreased, leading to an increase in income from operations to $4.5 million.
  • The company refinanced its debt, expecting to generate approximately $4.4 million in annualized savings beginning in 2025.

Headline financials

Total Revenue

$98.3M

Previous: $99.8M-1.6%
EPS

-$0.17

Previous: -$0.37+54.0%
Gross Margin

38.7%

Previous: 37.6%+2.9%
OpEx % of Sales

34.1%

No prior period
Operating Margin

4.6%

No prior period
Inventories

$175M

No prior period
Capital Expenditures

-$2.13M

Previous: -$1.74M-22.6%
Free Cash Flow

-$3.37M

Previous: -$4.45M+24.3%
Net Income

-$1.24M

Previous: -$2.72M+54.2%
Operating Income

$4.51M

Previous: $2.2M+104.7%
Gross Profit

$38M

Previous: $37.6M+1.2%
Cash & Equivalents

$4.11M

Previous: $3.08M+33.3%
Total Assets

$468M

Previous: $535M-12.5%
Stock-Based Comp

$312K

Previous: $293K+6.5%

Revenue & EPS history

Rocky Brands · Revenue · Quarterly

$98.3M

Q2 2024-1.6%vs Q2 2023
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Rocky Brands · $126M total across 3 segments · Q3 2023

  • Wholesale
    $99.7M-17.4%
  • Retail
    $24.5M+4.7%
  • Contract Manufacturing
    $1.4M-57.6%

Forward guidance

Company expects to navigate consumer environment, due to diversified brand portfolio and recently deployed cost saving initiatives.

Tailwinds

  • Strong double-digit gains in sales for Durango and XTRATUF brands
  • Sales growth in wholesale and e-commerce channels
  • Debt refinancing and simplification of capital structure
  • Expected to generate approximately $4.4 million in annualized savings beginning in 2025
  • Actions to improve the Company’s financial profile

Headwinds

  • Unpredictable consumer environment
  • Softness in other areas of business
  • Net sales decreased by 1.6%
  • Interest expense inclusive of one-time term loan extinguishment charge increased compared to the prior year
  • Reported a net loss of $1.2 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+3.0%

Avg return

Earnings day

+6.3%

Avg return

5 days after

+6.7%

Avg return

30 days after

62%

40 / 65 earnings

Positive

+53.3%

Q1 2025

Best reaction

-26.6%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.4%+3.1%+2.6%
Q4 2025+37.8%+35.3%+13.2%
Q3 2025-2.0%-4.7%+1.5%
Q1 2025+53.3%+34.6%+63.1%
Q4 2024-10.9%-19.6%-25.4%
Q3 2024-26.6%-25.1%-21.7%
Q2 2024-2.8%-16.7%-10.7%
Q1 2024+22.2%+29.7%+37.4%
Q4 2023-18.4%-14.4%-11.3%
Q3 2023+47.5%+78.8%+135.2%
Q2 2023+2.4%+1.6%-11.7%
Q1 2023-26.6%-26.7%-33.6%
Q4 2022+1.4%-2.2%-15.9%
Q3 2022+11.4%+14.5%+42.3%
Q2 2022-15.7%-18.0%-23.5%
Q1 2022+1.9%-5.5%-4.8%
Q4 2021+23.2%+19.5%+7.9%
Q3 2021-23.2%-24.8%-38.1%
Q2 2021-14.0%-7.9%-15.0%
Q1 2021+13.5%+18.9%-0.7%
Q4 2020+13.6%+35.2%+39.8%
Q3 2020+4.5%+11.1%+27.1%
Q2 2020+49.7%+27.3%+30.2%
Q1 2020+4.0%-6.5%+1.6%
Q4 2019+5.6%-1.4%-24.3%
Q3 2019-13.6%-13.3%-15.4%
Q2 2019+4.8%+9.0%-2.7%
Q1 2019+7.5%+5.9%+6.0%
Q4 2018+5.3%+8.5%-12.4%
Q3 2018+3.0%+7.8%-0.9%
Q2 2018+22.0%+15.3%+13.8%
Q1 2018+6.2%+10.0%+21.6%
Q4 2017+9.4%+12.1%+25.2%
Q3 2017+1.4%+24.9%+34.4%
Q2 2017+13.4%+10.6%+6.3%
Q1 2017+10.6%+27.2%+27.6%
Q4 2016-0.9%+1.8%-2.2%
Q3 2016+2.9%+4.4%+8.7%
Q2 2016-9.1%-12.9%-13.8%
Q1 2016-11.6%
Q4 2015-6.2%
Q3 2015-15.8%
Q2 2015-10.6%
Q1 2015+0.6%
Q4 2014+29.4%
Q3 2014-1.7%
Q2 2014+4.0%
Q1 2014-0.8%
Q4 2013+0.5%
Q3 2013-21.2%
Q2 2013+13.6%
Q1 2013+3.3%
Q4 2012-10.0%
Q3 2012-1.5%
Q2 2012-10.6%
Q1 2011+3.1%
Q1 2012+1.9%
Q4 2011-0.8%
Q3 2010-2.0%
Q3 2011-2.0%
Q2 2011+3.4%
Q2 2010+3.4%
Q4 2009+3.4%
Q4 2010+3.4%
Q1 2010+3.6%

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