Jason Brooks, President and Chief Executive Officer, commented: “We are pleased to be off to a good start in 2019 with solid first quarter results that included an 18% increase in retail sales. Our overall performance continues to be driven by our commitment to execute the game plan we’ve outlined for the company, namely, introducing compelling products, expanding awareness and demand for our brands and direct channels, providing enhanced retailer support, and capitalizing on our production capabilities to increase sales and manufacturing efficiencies. These initiatives are fueling consistent gains in revenue, gross margins and profitability, which is allowing us to reinvest in our business and return capital to shareholders through our quarterly dividend and share repurchase plan. Looking ahead, we are cautiously optimistic about our prospects for growth over the remainder of the year and believe we are well positioned for sustained success over the long-term.”

First Quarter Review

Net sales for the first quarter increased by 7.4% to 65.9 million US dollars compared to 61.4 million US dollars a year ago. Wholesale sales for the first quarter increased by 4.8% to 42.4 million US dollars compared to 40.4 million US dollars for the same period in 2018. Retail sales for the first quarter increased 18.2% to 15.4 million US dollars compared to 13.1 million US dollars for the same period last year. Military segment sales for the first quarter were 8.1 million US dollars compared to 7.9 million US dollars in the first quarter of 2018.

Gross margin in the first quarter of 2019 increased to 23.0 million US dollars, or 34.9% of sales, compared to 21.0 million US dollars, or 34.2% of sales, for the same period last year. The 70 basis point increase was driven by higher retail and military margins combined with a lower percentage of military sales, which carry lower gross margins than wholesale and retail sales.  Income from operations increased to 4.5 million US dollars, or 6.8% of net sales compared to income from operations of 4.2 million US dollars, or 6.9% of net sales a year ago.

About Rocky Brands, Inc.

Designer, manufacturer and marketer of premium quality footwear and apparel marketed under a portfolio of well recognized brand names including Rocky, Georgia Boot, Durango, Lehigh, and the licensed brand Michelin.