Rocky Brands (NASDAQ: RCKY) reported Q1 EPS of $0.27, $0.20 worse than the analyst estimate of $0.47. Revenue for the quarter came in at $55.7 million versus the consensus estimate of $66.3 million.

Jason Brooks, President and Chief Executive Officer, commented, “Our business is holding up well despite one of the most difficult operating environments in our company’s long history. We entered 2020 with good momentum thanks to the multi-year execution of strategic initiatives that have enhanced our brands’ positioning in the marketplace, strengthened our relationships with our consumers and retail customers, and fortified our balance sheet. While we face challenges due to the COVID-19 pandemic, particularly within our brick and mortar wholesale channel as much of the country continues to shelter-at-home, we have taken decisive actions to capitalize on our digital and distribution center capabilities and increase liquidity. Over the past several weeks, we’ve experienced an acceleration in sales on our ecommerce sites as well as an uptick in new account growth for our online Lehigh CustomFit safety shoe business as many of our consumers work in critical industries that are keeping America running during this crisis. As Rocky Brands has done in the past, I am confident that we will weather this storm and emerge in a position to resume delivering sustained growth, increased profitability and enhanced value for our shareholders.”

COVID-19 Update
Below is a summary of the current status of Rocky Brands’ operations and the actions taken to mitigate the financial impact of COVID-19 and preserve liquidity to-date.

• The Company’s 200,000 square-foot distribution center in Logan, Ohio has remained open and fully operational.
• The Company’s manufacturing facilities in Puerto Rico and the Dominican Republic have reopened following temporary government mandated shutdowns and are currently operating at a reduced capacity.
• The Company has reduced operating expenses by approximately $1.5 million for the year.
• The Company has delayed approximately $15 million in planned inventory receipts from third party suppliers.
• The Company drew down $20 million on its credit facility as a precautionary measure. As of March 31, 2020, the Company had $44.2 million in cash and cash equivalents and $40 million in available borrowings on its credit facility.
• The Company has suspended all share repurchases indefinitely.

For earnings history and earnings-related data on Rocky Brands (RCKY) click here.