Rocky Brands, Inc. and Williamson-Dickie Manufacturing Company Reach Mutual Agreement to End Dickies(R) Footwear License Partnership
NELSONVILLE, Ohio--(BUSINESS WIRE)-- Rocky Brands, Inc. (Nasdaq: RCKY) and Williamson-Dickie Manufacturing Company, today announced that they have reached a mutual agreement under which Williamson-Dickie will bring its Dickies(R) footwear business in-house effective January 1, 2011.
Rocky Brands has served as the exclusive licensee of Dickies(R) footwear since January 2005 when it acquired EJ Footwear. The existing license agreement is set to expire December 31, 2010.
Mike Brooks, Chairman and Chief Executive Officer stated, "We have enjoyed partnering with Dickies(R) to create top quality, value priced footwear for the American worker. With their acquisition of Kodiak Group Holdings in 2008, a Canadian based apparel and footwear manufacturer, we anticipated it would be difficult for us to retain the Dickies(R) footwear license beyond 2010 and we have been taking steps to replace that business beginning next year. In addition, this decision will allow us the opportunity to dedicate more time and resources to growing our owned brands - Rocky(R), Georgia Boot(R) Durango(R), and Lehigh(R) - which carry significantly higher gross margins."
Dickies(R) footwear sales represented approximately 4% of Rocky Brands total sales in 2009.
Philip Williamson, Chief Executive Officer of Williamson-Dickie Manufacturing Company, commented, "Our relationship with Rocky has been very successful and we appreciate its many valuable contributions to the Dickies(R) brand. However, we now have the internal capabilities to develop and market footwear thanks to our purchase of Kodiak Group. Therefore, we made the strategic decision to bring the Dickies(R) footwear business in-house to take advantage of our acquired expertise and better leverage our operating and manufacturing platform."
About Rocky Brands, Inc.
Rocky Brands, Inc. is a leading designer, manufacturer and marketer of premium quality footwear and apparel marketed under a portfolio of well recognized brand names including Rocky(R), Georgia Boot(R), Durango(R), Lehigh(R), and the licensed brands Dickies(R), Michelin(R) and Mossy Oak(R).
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Those statements include, but may not be limited to, all statements regarding intent, beliefs, expectations, projections, forecasts, and plans of the Company and its management. These forward-looking statements involve numerous risks and uncertainties, including, without limitation, the various risks inherent in the Company's business as set forth in periodic reports filed with the Securities and Exchange Commission, including the Company's annual report on Form 10-K for the year ended December 31, 2009 (filed March 2, 2010). One or more of these factors have affected historical results, and could in the future affect the Company's businesses and financial results in future periods and could cause actual results to differ materially from plans and projections. Therefore there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the Company, or any other person should not regard the inclusion of such information as a representation that the objectives and plans of the Company will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.
Source: Rocky Brands, Inc.
Released April 22, 2010
