Rocky Brands, Inc. third quarter of 2007 net sales increased 5.4% to
$82.3 million versus net sales of $78.1 million in the third quarter of
2006. The increase in sales was primarily driven by a 25.0% increase in
retail revenues, combined with a slight increase in wholesale sales.
Gross margin declined 550 basis points to 35.6% of sales from 41.1% of
sales in the year-ago quarter due to pricing pressure and an increase
in product costs. The company reported net income of $1.1 million, or
21 cents per diluted share versus net income of $4.2 million or 76
cents per diluted share a year ago.
The company now expects net sales for fiscal 2007 to be approximately
$280 million compared to previous guidance of approximately $277
million, but earnings per share of approximately 30 cents versus its
previous guidance of approximately $1.16 per share.
