Apparel and footwear company Rocky Brands posted net sales of $99.8 million in the second quarter, down 38.4 per cent year over year.

Both wholesale segment and retail segment sales dropped by 45.5 per cent and 3.6 per cent, respectively, compared to the same period last year.

Operating expenses were $35.4 million compared to $48.2 million year on year, driven by a decrease in variable expenses associated with lower sales and improved distribution center efficiencies.

The company, which owns brands such as Rocky, Georgia Boot, Durango, and Lehigh, reported a net loss of $2.7 million compared to net income of $900,000 in the second quarter of 2022. 

However, total debt as of June 30 was down 22.1 per cent compared with June 30, 2022.

“Consumer response to our brand portfolio remains solid with strong full-price selling and recent price increases helping drive a 440-basis point improvement in gross margin,” said Jason Brooks, chairman, president and CEO of Rocky Brands.

“While our year-to-date results were more challenging than anticipated due in part to ongoing industry headwinds, we believe our business is positioned for improvement over the remainder of 2023.”