RCKY Earnings Prediction
The chart below shows how RCKY performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RCKY sees a +3.17% change in stock price 10 days leading up to the earnings, and a +3.14% change 10 days following the report. On the earnings day itself, the stock moves by +0.90%. This data can give you a slight idea of what to expect for the next quarter's release.
RCKY Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
114.55M
-8.80%
16.58%
Gross Margin
38.10%
2.83%
-1.58%
Operating Margin
8.79%
-27.24%
91.50%
Net Margin
4.61%
-15.10%
-462.99%
EPS
0.70
-24.73%
-511.76%
No Data Available
RCKY Earnings Analysis
Rocky Brands, Inc. Corporation (RCKY.O) Earnings Conference Call
Positive
Retail Sales Surge: 1. Strong Retail Growth: Retail sales increased by 11.8% to $26.8 million compared to the previous year, showcasing robust performance in this segment.
Gross Margin Improvement: 2. Improved Gross Margins: Gross profit for the third quarter was $43.6 million, representing a gross margin of 38.1%, an increase of 110 basis points from the prior year, driven by higher wholesale gross margins and a greater mix of retail sales.
Interest Expense Decrease: 3. Debt Reduction: Interest expense decreased to $3.3 million from $5.8 million year-over-year, reflecting a 43% reduction due to lower debt levels and interest rates following a refinancing in April 2024.
B2B Customer Growth: 4. Positive Customer Growth in B2B: The B2B Lehigh business saw double-digit sales growth compared to the previous year, adding over 200 new accounts in the third quarter, indicating strong demand and effective sales strategies.
Spring Bookings Surge: 5. Strong Spring Bookings: The company reported significant increases in spring bookings compared to the previous year, particularly for XTRATUF and Durango, positioning them for a strong start in 2025.
Negative
Sales Decline Analysis: 1. Declining Sales: Sales for Q3 2024 were $114.5 million, down 2.4% year-over-year, with Wholesale sales specifically decreasing by 9.7% to $84 million.
Net Income Decline: 2. Reduced Net Income: Net income fell to $5.3 million or $0.70 per diluted share, compared to $6.8 million or $0.93 per diluted share in Q3 2023, reflecting a significant decline in profitability.
Rising Operating Expenses: 3. Increased Operating Expenses: Operating expenses rose to $33.6 million or 29.3% of net sales, up from $32.3 million or 25.7% of net sales in the previous year, indicating rising costs that outpaced revenue growth.
Inventory Shortages Impact Sales: 4. Inventory Challenges: Despite a slight decrease in total inventory to $171.8 million, the company faced inventory shortages and delivery delays, which hindered sales potential, particularly for the XTRATUF brand.
Sales Guidance Revision: 5. Lowered Sales Guidance: The company anticipates full-year sales to be at the low end of the initial range of $450 million to $460 million, indicating a downward revision in expectations due to recent performance issues.
RCKY FAQs
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RCKY Earning Call Sentiment
Rocky Brands, Inc. (RCKY) Q3 2024 Earnings Call Transcript
RCKY.O
-3.31%Positive
The earnings call reveals several negative aspects: a decline in sales and operating income, increased expenses, and cautious macroeconomic outlook. Despite some positive aspects like retail sales growth and debt reduction, the lack of a share repurchase program, military budget delays, and inventory challenges weigh negatively. The Q&A section adds concerns about inventory bottlenecks and cautious wholesale growth guidance. Overall, the sentiment is negative, reflecting the challenges and uncertainties facing the company.
