NASDAQ$RCKY

Rocky Brands Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Experienced fulfillment challenges in the Ohio distribution center, impacting the ability to deliver orders on time.

Rocky Brands, Inc. reported a 61.4% increase in net sales to $125.5 million for the third quarter ended September 30, 2021. The results reflect the impact of temporary fulfillment challenges in the company's Ohio distribution center. The company reported a net loss of $(0.4) million, or $(0.05) per diluted share, but adjusted net income was $2.5 million, or $0.34 per diluted share.

  • Net sales increased 61.4% to $125.5 million.
  • Wholesale segment sales increased 70.3%; Retail segment sales increased 35.3%.
  • Net loss of $(0.4) million, or $(0.05) per diluted share.
  • Adjusted net income of $2.5 million, or $0.34 per diluted share.

Headline financials

Total Revenue

$126M

Previous: $77.8M+61.4%
EPS (adj)

$0.34

Previous: $1.04-67.3%
Gross Margin

37.4%

Previous: 38.4%-2.6%
Capital Expenditures

-$15.9M

Previous: -$8.62M-84.0%
Free Cash Flow

-$16.2M

Previous: -$1.01M-1512.2%
Net Income

-$375K

Previous: $7.61M-104.9%
Operating Income

$2.75M

Previous: $9.66M-71.5%
Gross Profit

$47M

Previous: $29.8M+57.4%
Cash & Equivalents

$12.9M

Previous: $19.9M-35.2%
Total Assets

$547M

Previous: $217M+151.9%
Stock-Based Comp

$327K

Previous: $189K+73.0%

Revenue & EPS history

Rocky Brands · Revenue · Quarterly

$126M

Q3 2021+61.4%vs Q3 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Rocky Brands · $118M total across 2 segments · Q3 2021

  • Wholesale
    $96M+70.5%
  • Retail
    $21.8M+35.4%

Forward guidance

The company is positioning the business for further market share gains and increased profitability despite a volatile operating environment. Fulfillment headwinds are limiting near-term growth potential.

Tailwinds

  • New distribution center in Reno, Nevada, went live in early October, improving shipping capacity ahead of the holiday season.
  • Enviable inventory position.
  • Relative insulation from industry-impacting global supply chain issues through Caribbean-based manufacturing facilities.
  • Key competitive advantages are driving shelf space gains and new market opportunities.
  • Excited to complete the integration of the Boston Group to unlock the earning power of combined organizations.

Headwinds

  • Temporary fulfillment challenges in the Ohio distribution center are hindering the ability to deliver a portion of orders on time.
  • Near-term growth potential is being limited by fulfillment headwinds.
  • Operating environment remains volatile.
  • Lower wholesale segment gross margins due to an increase in capitalized manufacturing and sourcing costs associated with the acquired brands.
  • Lower mix of retail segment sales compared with the year ago period, which carry higher gross margins than the wholesale and contract manufacturing segments.

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 Q3 2021

Historical avgQ3 2021

+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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