May 02, 2023
The west coast retailer barely remained in the black for the first quarter, posting net income of $193,000, down 98% from last year’s $9,103,000 profit, on revenues that were 7% lower at $224,939,000 compared to $241,981,000 including a -7.1% comp.
Helped by product price increases taken in 2022 and lower logistics costs, Rocky Brands improved its Q1 gross margin by 200 basis points to 39.6%.
The struggling exercise equipment company has divested its eponymous brand and related licenses and other assets for about $13 million, noting that it has de-emphasized the Nautilus brand recently in favor of Bowflex and its JRNY connected fitness efforts.
After missing a $5 million term loan principal payment that was due at the end of Dec., the children’s licensed apparel maker will benefit from that debt getting converted to equity at the end of Jun, according to Moody’s.
Legacy1846, an investment holding company, has acquired the outdoor portfolio company, along with its subsidiaries QuickFire and Peak Strategic Insights for undisclosed terms.