U.S.-based footwear and apparel maker Rocky Brands reported soaring first-quarter revenues and net income on the back of strong demand from its wholesale and direct-to-consumer channels. The company said revenues for the three months to March 31 rose by 57.3 percent to $87.7 million. Wholesale segment sales increased by 69.1 percent to $59.2 million, while retail sales were up by 42.0 percent to $24.0 million.
The company’s gross margin increased by 5.40 percentage points to 40.1 percent. The net income rose to $4.5 million, or $0.61 per diluted share, from $1.2 million, or $0.16 per diluted share, in the first quarter of 2020. Adjusted net income was $8.7 million, or $1.19 per diluted share, against $2.0 million, or $0.27 per diluted share.
Rocky Brands bought Honeywell International’s performance and lifestyle footwear business in March for $230 million with the new unit delivering net sales of $6.5 million during the quarter. The acquired portfolio comprised The Original Muck Boot Company, Xtratuf, Servus, NEOS and Ranger brands.
“It has been an excellent start to the year for Rocky Brands as we delivered a strong first quarter performance and completed a highly transformative acquisition,” said Rocky Brands president and chief executive, Jason Brooks. “We experienced robust demand for our Rocky, Georgia and Durango brands across our wholesale and direct-to-consumer channels, which, when combined with an easier comparison due to the impact on our business from Covid-19 in the year-ago period, resulted in a dramatic improvement in revenue and earnings per share.”