The Company
Rocky Brands, Inc. designs, develops, manufactures and markets premium quality rugged outdoor, occupational, and casual footwear, as well as branded apparel and accessories. The Company's footwear, apparel and accessories are marketed through several distribution channels, primarily under owned brands, ROCKY® and GATES®, and as a result of the acquisition of EJ Footwear, GEORGIA BOOT®, LEHIGH®, DURANGO, and the licensed brand DICKIES®.
The Company's product line is organized into three primary categories: rugged outdoor footwear, including hunting and hiking boots, with suggested retail prices generally ranging from $60 to $190 per pair; nonmilitary occupational footwear, with suggested retail prices generally ranging from $40 to $160; and handsewn casual footwear, with suggested retail prices generally ranging from $90 to $150 per pair. The Company also sells footwear accessories, such as waterproof socks and innersole support systems, and has a factory outlet store in Nelsonville, Ohio.
Innovativeness, quality, and durability are hallmarks of the ROCKY® brand name. The Company continually monitors the development of innovative raw materials and has distinguished its branded products by incorporating new fabric technologies into the design of its footwear. Rocky places an emphasis on the manufacture of waterproof footwear and is currently the largest customer of GORE-TEX® waterproof fabric for footwear. The Company was also the first footwear manufacturer to market an all CORDURA® nylon fabric hunting boot.
The Company is the successor to the business of The Wm. Brooks Shoe Company, a company established in 1932 by William Brooks, who was later joined by F. M. Brooks (the grandfather of the Company's current Chairman, President, and Chief Executive Officer, Mike Brooks). The business was sold in 1959 to a company headquartered in Lancaster, Ohio. John W. Brooks (the father of Mike Brooks) remained as an employee of the business when it was sold. In 1975, John W. Brooks formed John W. Brooks, Inc. (nka Rocky Shoes & Boots Co. ("Rocky Co.")) as an Ohio corporation, reacquired the Nelsonville, Ohio, operating assets of the original company, and moved the business' principal executive offices back to Nelsonville, Ohio. In 1987, Five Star Enterprises Ltd. ("Five Star"), a Cayman Islands corporation, was formed by John W. Brooks, Mike Brooks, two other current executive officers of the Company, and Eric M. Beraza, a retired executive officer of the Company, to produce shoe and boot uppers at a manufacturing facility located in La Vega, Dominican Republic. In 1988, Lifestyle Footwear, Inc., ("Lifestyle"), a Delaware corporation, was established as a subsidiary of Rocky Co. and commenced operations at a manufacturing facility in Aquadilla, Puerto Rico.
Industry
The Company operates in a very competitive environment and many of its competitors have greater financial, distribution, and marketing resources than the Company. The Company has at least five major competitors in the rugged outdoor footwear market and three major competitors in the occupational footwear market. In the handsewn casual market there are numerous competitors. All of these competitors have strong brand name recognition in the markets that they serve.
Product function, design, comfort, and quality, continued technological improvements, brand awareness, timeliness of product delivery, and product pricing are all important elements of competition in the markets for the Company's footwear. The Company believes that, based on these factors, it maintains a strong competitive position in its outdoor footwear and occupational footwear market niches.
The footwear industry is subject to rapid changes in consumer preferences. Although demand for the Company's rugged outdoor and occupational footwear is relatively less sensitive to changing fashion trends, as these product lines are primarily classic styles which emphasize functionality and performance, consumer preferences and fashion trends are becoming relatively more important even in these lines. The Company's handsewn casual product line and certain styles within its rugged outdoor and occupational product lines are relatively more susceptible to fashion trends, and therefore, the success of these products and styles are more dependent on the Company's ability to anticipate and respond to changing fashion trends and consumer demands within its niche market in a timely manner. The Company's inability or failure to do so could adversely affect consumer acceptance of these product lines and styles
Site Last Updated November 25, 2008.
