Rocky Brands Inc (RCKY, Financial) announced its financial results for the third quarter ended September 30, 2023, on November 1, 2023. Despite a decrease in wholesale sales, the company's retail segment and operating income showed promising growth.
Financial Performance Overview
Rocky Brands Inc (RCKY, Financial) reported a 14.8% decrease in net sales to $125.6 million compared to $147.5 million in Q3 2022. However, the company's retail segment sales increased by 4.7% to $24.5 million compared to $23.4 million for the same period last year. Despite the decrease in wholesale segment sales by 17.4% to $99.7 million, the company's operating income increased by 22.8% to $14.3 million.
Jason Brooks, Chairman, President, and Chief Executive Officer, commented on the company's performance, stating,
Our quarterly performance saw meaningful improvement on a sequential basis as demand for our product improved, resulting in further reduced channel inventory levels and an acceleration in at-once orders from many of our key wholesale partners."
Balance Sheet and Cash Flow Highlights
The company's total debt at the end of Q3 2023 was down by 24.9% compared to the same period in 2022. Inventories decreased by 26.5% year-over-year. Cash and cash equivalents were $4.2 million at the end of Q3 2023, compared to $7.3 million on the same date a year ago.
Looking Ahead
Despite the challenging market conditions, Rocky Brands Inc (RCKY, Financial) remains confident about its financial position. The company believes it is well-positioned to improve on recent trends in the fourth quarter and begin 2024 with an improved balance sheet and good momentum across its business.
Explore the complete 8-K earnings release (here) from Rocky Brands Inc for further details.
