ROCKY BRANDS Reports Q2 Earnings Results for FY2023
August 22, 2023
🌥️Earnings Overview
On August 1 2023, ROCKY BRANDS ($NASDAQ:RCKY) reported their financial results for Q2 of FY2023, which ended on June 30. Total revenue for the quarter decreased by 38.4% year over year, to USD 99.8 million. Additionally, net income fell significantly to -2.7 million, compared to the 0.9 million reported for the same quarter of the previous year.
Market Price
The company’s stock opened at $20.0 and closed at $21.4, representing a 6.3% increase from the prior closing price of $20.1. This was the highest closing price of the stock since the beginning of the fiscal year. ROCKY BRANDS attributed the successful quarter to their strategic investments in marketing and product development. They also reported that they had achieved zero waste to landfill status for their manufacturing processes in North America, a move applauded by environmental advocacy groups. Their commitment to sustainability is also an encouraging sign for the future of this company. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rocky Brands. More…
| Total Revenues | Net Income | Net Margin |
| 496.68 | 9.09 | 1.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rocky Brands. More…
| Operations | Investing | Financing |
| 26.13 | -1.23 | -18.08 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rocky Brands. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 534.51 | 323.78 | 28.65 |
Key Ratios Snapshot
Some of the financial key ratios for Rocky Brands are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 25.0% | 20.1% | 6.4% |
| FCF Margin | ROE | ROA |
| 4.1% | 9.3% | 3.7% |
Analysis
After analyzing the financials of ROCKY BRANDS, GoodWhale has concluded that it is classified as a ‘rhino’ type company, with moderate revenue or earnings growth. The company is strong in dividend and profitability but only medium in asset and growth. It also has an intermediate health score of 6/10 which indicates that its cashflows and debt are reasonably stable and it is unlikely to face bankruptcy in the case of a crisis. Investors who take a long-term approach to investing in intermediate companies such as ROCKY BRANDS are likely to find this company attractive due to its above-average dividend and profitability as well as its relative safety from bankruptcy. Such investors should also take into account the more moderate asset and growth scores. More…
Peers
The company operates in two segments, Wholesale and Direct to Consumer. It offers boots, shoes, and apparel for men, women, and children under the Rocky, Georgia Boot, Durango, Lehigh, Creative Recreation, and licensed Michelin brands. The company also provides footwear for uniformed personnel and civilians under the Original S.W.A.T., Tactical Research by Belleville, and Chippewa brands. In addition, it offers work, western, and hunting footwear for men and women under the Georgia Giant, GeorgiaRomero, Durango, Lehigh, and L.B. Evans brands; and markets footwear for children under the Little Giant brand. Further, the company provides footwear for military, law enforcement, and fire and rescue professionals under the Original S.W.A.T., Tactical Research by Belleville, Chippewa, and Michelin brands. Additionally, it offers licensed products, including T-shirts, hats, belts, wallets, and key chains, as well as outerwear and footwear. The company sells its products through its wholesale customers to department, specialty, and independent stores in the United States; and through company-owned stores and direct mail catalogs, as well as its Website in the United States and Canada. Rocky Brands Inc was founded in 1932 and is headquartered in Nelsonville, Ohio. Some of Rocky Brands Inc’s competitors include Deckers Outdoor Corp, C Banner International Holdings Ltd, and Puma SE.
– Deckers Outdoor Corp ($NYSE:DECK)
Deckers Outdoor Corp is a footwear company that designs, manufactures, and markets footwear and apparel for casual lifestyle use and high performance activities. The company’s products are sold under a portfolio of brands, including UGG®, Koolaburra®, Hoka One One®, Teva®, and Sanuk®. As of 2022, Deckers Outdoor Corp has a market cap of 8.73B and a Return on Equity of 23.76%. The company’s products are available in more than 100 countries worldwide.
– C Banner International Holdings Ltd ($SEHK:01028)
Banner International Holdings Ltd. is a Hong Kong-based company principally engaged in property development, investment and management. The Company’s projects portfolio includes residential, office, retail and hotel properties. It also operates self-storage business. The Company operates its businesses in Hong Kong, Mainland China and Macau.
– Puma SE ($OTCPK:PUMSY)
Puma SE is a German multinational corporation that designs and manufactures athletic and casual footwear, apparel, and accessories, headquartered in Herzogenaurach, Bavaria, Germany. The company was founded in 1948 by Rudolf Dassler. In 1924, Rudolf and his brother Adolf Dassler had jointly formed the company Gebrüder Dassler Schuhfabrik. The relationship between the two brothers deteriorated until the two agreed to split in 1948, forming two separate entities, Adidas and Puma. Both companies are currently based in Herzogenaurach, Germany.
Puma has a market capitalization of 6.91 billion as of 2022 and a return on equity of 17.11%. The company designs and manufactures athletic and casual footwear, apparel, and accessories for men, women, and children.
Summary
Investors in Rocky Brands have seen mixed results in the company’s second quarter of 2023. Total revenue dropped 38.4% year over year to USD 99.8 million, while net income decreased to a loss of USD -2.7 million, compared to a gain of 0.9 million in the same period last year. Despite these financial losses, the company’s stock price rose on the same day, indicating that investors are still confident in its future prospects. Investors should be aware of the risks associated with investing in Rocky Brands, but may also benefit from its potential long-term value.
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