RCKY - Rocky Brands: Supply chain issues cause stock to plummet to eight-month low

Rocky Brands (RCKY -19.6%) shares dive as the boot maker reports revenue and earnings below consensus. Revenue (+61.3% Y/Y) fell sequentially to $125.5M from $131.6M in Q2 2021 after analysts expected it to rise. "After moving the recently acquired Boston Group’s* inventory to our Ohio distribution center in mid-August, and receiving record inbound supply in preparation for a strong finish to the year, we encountered unanticipated fulfillment challenges that are temporarily hindering our ability to deliver a portion of orders on time," said CEO Jason Brooks. He added that Rocky Brands is making "good progress" to regaining full efficiency at its distribution centers. Adjusted gross margin fell 30 bps Y/Y and 70 bps Q/Q to 38.1% due to an increase in capitalized manufacturing and sourcing costs associated with the acquired brands and a lower mix of higher margin retail segment sales. The earnings miss is only Rocky's second in the past four years.

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Rocky Brands: Supply chain issues cause stock to plummet to eight-month low