RCKY - Rocky Brands Pushes Recent Growth Against Industry Pressures

2024-07-02 23:31:30 ET

Summary

• Rocky Brands has achieved very slow historical growth, which has been shaken up recently by the Honeywell acquisition, divestitures, and macroeconomic pressures pressuring footwear manufacturers very aggressively.
• Despite industry pressure, RCKY achieved impressive organic growth in Q1 as cost savings were pushed into higher marketing spend.
• After the share rally in the past year, the Company's valuation seems balanced with my financial estimates that assume some continued mid-term growth and slight margin expansion.

Rocky Brands, Inc. ( RCKY ) manufactures boots and other footwear and apparel through a portfolio of brands , including Rocky, Durango, Muck Boot Co., Ranger, and multiple others. The company acquired several brands with the Honeywell transaction in 2021 for $230 million, transforming the business into the larger entity that Rocky is now. The majority of Rocky's sales come from wholesale , but the company also generates sales through retail channels and contract manufacturing....

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