Rocky Brands, Inc. (NASDAQ:RCKY) Q3 2023 Earnings Call Transcript

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Jason Brooks: Yes, I would just add that we have a great team of people here that are supporting Tom as well from the CFO side. We’ve got a great team of people that are helping and supporting Tom and me from the COO side or the operations side and the team has really stepped up and done an amazing job in getting us where we are today through Q3. And so as Tom said, the culture of our company is really important to both of us, and I think everybody in the company. And so we’re going to be cautious here and take our time and make sure the next fit is right for us.

Jonathan Komp: All right, thanks again.

Jason Brooks: Thanks, Jon.

Operator: Our next question is from Janine Stichter from BTIG. Please proceed with your questions.

Ethan Saghi: Hey, you got Ethan Saghi on for Janine. I hope you guys are doing well. I just got one on my end. It’s regarding SG&A margin. I was just wondering if you could give any color on what that might look like in Q4 and going forward. And if we should maybe expect it to stay lower in that kind of mid-20s range or if we should expect it to go kind of back further towards the high 20s, low 30s range? Thanks.

Thomas Robertson: Yes, hey Ethan, I’ll take this one. And Jason, feel free to add. But I think we kind of guided to the deleveraging in the prepared remarks. But it implies essentially kind of in between the 25% and 30% range, probably leaning closer to the higher 20s. And I think it’s important to call out that if you think about the mix of sales in the fourth quarter, significantly more e-commerce orders in particular. So we see our freight as a percent of sales and even our handling as a percent of sales tick up in the fourth quarter historically. So I would put it in that 27% to 29% range.

Ethan Saghi: Got it. I appreciate it. And congrats on the nice quarter.

Jason Brooks: Thanks.

Thomas Robertson: Thanks, Ethan.

Operator: There are no further questions at this time. I would now like to turn the floor back over to Jason Brooks for closing comments.

Jason Brooks: Great. Thank you very much. Just to wrap things up, I’d really like to thank our shareholders, our vendors and customers as we’ve really had to navigate a challenging 2023, which has been challenging for a lot of companies and people. And then I really would like to thank the entire Rocky team who has just worked effortlessly and diligently to make Rocky Brands the best company it can be. The team’s morale as well, and we are excited about the future of this company and look forward to continuing to build Rocky Brands. So thank you all very much, Rocky.

Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.

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