Sales dip 15% at apparel manufacturer Rocky Brands in Q2

Selling, general and administrative (SG&A) expenses decreased 11.6% to $14.9 million or 33.5% of net sales, for the second quarter of 2012 compared to $16.9 million, or 32.2% of net sales a year ago. The $2.0 million decrease is primarily due to lower compensation expense, operating costs of our retail business, and lower advertising expenses.

Income from operations was $0.5 million, or 1.0% of net sales, compared to $3.8 million, or 7.2% of net sales, in the prior year period.

Interest expense decreased to $0.1 million for the second quarter of 2012 versus $0.3 million due to lower borrowings versus the same period a year ago.

The Company’s funded debt decreased 24.3% or $9.6 million to $29.9 million at June 30, 2012 versus $39.5 million at June 30, 2011.

Inventory at June 30, 2012 was $74.0 million compared with $74.4 million on the same date a year ago. On a year over year basis footwear units decreased 13.5%.

Rocky Brands, Inc. is a leading designer, manufacturer and marketer of premium quality footwear and apparel marketed under a portfolio of well recognized brand names including Rocky, Georgia Boot, Durango, Lehigh, and the licensed brands Michelin and Mossy Oak.

Rocky Brands Inc