Sales down for Rocky Shoes and Boots in Q2
The US outdoor footwear brand, Rocky Shoes & Boots, Inc. last week announced consolidated financial results for the three and six months ended June 30, 2001. Second Quarter Results Net income increased 104.6% to $702,339, or $0.16 per diluted share, for second quarter 2001 from $343,288, or $0.08 per diluted share, for the same period last year. Second quarter 2001 net sales were $22.0 million versus $23.1 million last year. The 4.8% decline was primarily due to lower sales in the rugged outdoor and casual footwear categories, and, to a lesser extent, occupational footwear sales.
Casual footwear sales were below the same period a year ago due to the Company's reduced emphasis on this category. Net sales for the second quarter 2001 benefited from initial shipments of Intermediate Cold Wet military boots and sales of Wild Wolf(TM) by ROCKY(R), which were introduced in third quarter 2000. Gross margin rose to $6.2 million, or 28.0% of net sales, for second quarter 2001 compared with $5.5 million, or 23.7% of net sales, last year.
The improved performance is due to specific actions taken during the past twelve months to reduce manufacturing costs, price increases implemented earlier this year, and a higher proportion of sourced footwear sales during second quarter 2001. The Company has also maintained more flexible manufacturing schedules and improved inventory management this year, which contributed to the increase in gross margin for second quarter 2001. Selling, general and administrative ("SG&A") expenses increased 2.3% to $4.7 million for second quarter 2001 versus $4.6 million a year ago.
