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Rocky Brands marches higher after returning to profitability in 2017

Last updated: 07:00 22 Feb 2018 AEDT, First published: 02:00 22 Feb 2018 AEDT

work boots next to logs
Rocky Brands designs, develops, manufactures and markets outdoor and work apparel

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.

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