RCKY Rocky Jan 2016 Investor Presentation

8/20/2019 RCKY Rocky Jan 2016 Investor Presentation

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2014 ALL EMPLOYEE COMMUNICATION

ICR CONFERENCE 2016


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ICR CONFERENCE 2016

Safe Harbor StatementUnder the Private Securities

Litigation Reform Act of 1995

Our Presentation includes, and our response to variousquestions may include, forward-looking statements

about our revenues and earnings and about our futureplans and objectives. Any such statements are subjectto risks and uncertainties that could cause actualresults and the implementation of the Company’s plansand operations to vary materially. These risks are

discussed in the Company’s filings with the S.E.C.


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ICR CONFERENCE 2016

Rocky Brands, Inc

• The Company:

– Our Wholesale and Retail Business, Brands and

Segments

• What We’ve Learned Along The Way

• Growth Strategy

– Investments

• Earnings Model

• Why You Should Invest


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ICR CONFERENCE 2016


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ICR CONFERENCE 2016


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ICR CONFERENCE 2016


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2014 ALL EMPLOYEE COMMUNICATIONICR CONFERENCE 2016


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Work

52%

Western

17%

Hunting

12%

Military

10%

Lifestyle

9%

TTM SALES

MARKET SEGMENTS


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WORK


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HUNTING


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WESTERN


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MILITARY


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Retail Business


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What We’ve Learned

Along The Way…• Consistent Top Line Growth Is Tough

– Weather Dependency

–Segment Size

– Economic Climate

– Workplace Changes

–

Retail Consolidation


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G

RO

WT

H

Casual Lifestyle

MILITARY BOOTS

1

2

3DIRECT TO CONSUMER


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Casual Lifestyle

1


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The right scalable doors


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Insert Video S 16


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S16


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S16


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January In-Flight Magazine


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Celebrity Likes


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Based on success, 20-40 in-store test.

(G Shock watches is the only other 3rd party brand currently in store.)

EXPRESS.comOct/Nov: 10% per week

Dec: 12% per week

(On-line Only)


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Express.com


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S16: 25 Stores (Vito & Santos in 50 doors)

F16: Increasing the two core items to 70 doors.

Additionally for Fall 16, they will increase the full assortmentdoor count from 25 doors to 54 (includes 4 Canadian stores)

NordstromOct/Nov: 9% per week

Dec: 12% per week

(In-Store Only)


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Vito and Santos$70 ~ $90


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Casual Lifestyle

1


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Kohls.com - January

Benchmark Brands - April

DSW.com - February


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MILITARY BOOTS

2


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Growth Strategy: Military

Military Boots

CONTRACTS COMMERCIAL


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Military Contracts

0

5

10

15

20

25

30

Contract SalesIn Millions of Dollars

2014A 2015E 2016P


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Commercial MilitaryNew Operational Camouflage Uniform

Desert Tan Olive Mojave


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B2C SALES GROWTH

YOY

0

2

4

6

8

10

12

B2CIn Millions of Dollars

2013A 2014A 2015P


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E l Ad ti f R i D i


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Early Adoption of Responsive Design


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Financial

• Asset Management

– Inventory

– Receivables

– Fixed Assets

• Improved Gross Margins

• Earnings Model


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Inventory

• Finished Goods

– PLM

– Predictive Analytics• Raw Material

– New Shop Floor Systems

– Vendor Managed Inventories


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Fixed Assets

• Recent Run Rate – 2014A $5.7MM (excluding $1.2MM DA Machine)

– 2015E $5.4MM (excluding $2.7MM DC Upgrade)

– 2016P $5.5MM (excluding $1.4MM DC Upgrade)

• Distribution Center Upgrade

–

2015/16 Project – Total Cost $4.1MM


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Improved Gross Margin

• Direct Sales Carry Higher GM

•

Reduce Promotional Discounting• Better Sourced Cost


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Earnings Model

• Sales Mid single digit growth

• Gross Margin 50 bps Improvement

• S,G & A Modest Leverage

• EPS 20+% growth


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Investment Highlights

• Compelling Growth Opportunities

• Diversified Brand Portfolio & Distribution

• Improved Operating Structure

• Strong Balance Sheet

• Quarterly Dividend

Documents

RCKY Rocky Jan 2016 Investor Presentation