Rocky Brands Inc (NASDAQ:RCKY) marched higher on Wednesday after the outdoor and work apparel maker returned to profitability in the fourth quarter of the year.
An improvement in gross margins - which rose to 34.8% of sales compared to 32.5% a year ago - helped net income to come in at US$4.4mln in the three months ended December 31.
This time last year, Rocky disappointed investors after it reported a net loss of US$0.6mln.
The jump in margins more than offset stagnating sales, which were flat year-on-year at US$67mln.
In 2017 as a whole, the footwear group generated net income of US$9.6mln, or US$1.29 per share, as it swung back to an annual profit. Revenue was reported as US$253.2mln.
“We concluded a productive 2017 with a very solid fourth quarter performance which was highlighted by mid-single digit growth for both our wholesale and retail divisions,” said President and chief executive Jason Brooks.
“The product, marketing and distribution strategies we’ve recently implemented aimed at increasing full-price selling for our branded work, western and outdoor footwear businesses are contributing to better top and bottom line results.”
The stock was up 17.3% to US$19.07 late on Wednesday.