Rocky Brands, Inc. reported a dip in sales for the second quarter ended June 30, but wider margins along with pared-down costs helped the footwear manufacturer to better profit compared to the year-ago period.

 

Total sales for Rocky slipped 5.3 percent to $52.3 million versus $55.2 million in the year-ago period, much of which was attributable to the completion of a military order before the start of the year that dropped military sales from $5.7 million a year ago to about $600,000.


The companys Wholesales segment improved 6.0 percent to $40.8 million compared to $38.5 million last year, driven by a 17 percent gain in the Western category. Growth in the Western category was partially offset by a decline in the work category, a result of the discontinuation of the companys licensing agreement with Dickies at the end of 2010.
Retail sales for the quarter were $10.9 million, down 0.9 percent compared to $11 million last year.


Gross margins in quarter were 39.4% up 180 basis points from 34.6% for the same period last year. Management said was primarily attributable to the decrease in sales in the companys military segment, which carries lower gross margins than the retail and wholesale segments. Management also pointed to higher average selling prices throughout the business segments.


The company said it also benefited from a 290 basis point increase in its wholesale segment and a 250 basis point increase in its retail segment, each of which was driven by higher average selling prices and improved manufacturing efficiencies.