LaCrosse Footwear reports net sales of $33.3m
US footwear brand, LaCrosse Footwear, has reported results for the first quarter ended March 31, 2012. For the first quarter of 2012, LaCrosse reported net sales of $33.3 million, up 32% from $25.2 million in the first quarter of 2011. The company’s first quarter 2012 sales results benefitted from its fiscal calendar which provided four additional business days compared to the first quarter of 2011. Net income was $600,000 in the first quarter of 2012, up from a net loss of $700,000 in the first quarter of 2011.
Sales to the work market were $24 million for the first quarter of 2012, up 50% from the same period of 2011, reflecting fulfilment of a previously announced US military order and growing demand from a variety of non-military government and other niche work markets. Excluding the company’s contract military and discontinued work apparel sales, core work sales in the first quarter of 2012 increased 9% from the same period in 2011.
Sales to the outdoor market were $9.3 million for the first quarter of 2012, up 2% from the same period of 2011. Overall outdoor sales were negatively impacted by unseasonably warm and dry weather conditions, the firm said, offset by growing demand for its new hiking and lifestyle products.
Gross margins for the first quarter of 2012 were 37.9% of net sales, compared to 41.4% in the same period of 2011. The year-over-year decline in gross margins primarily reflects an increase in US military business and closeout sales. Operating expenses were $11.6 million in the first quarter of 2012, up 2% from the same period in 2011, reflecting increased investments in product development activities. The company’s inventories were $43.1 million at the end of the first quarter of 2012, down 8% from the end of the same period in 2011.
“We’re pleased with our performance in the first quarter of 2012, particularly the continued sales growth for our core work products and the success of our newest outdoor products,” said Joseph P. Schneider, president and CEO of LaCrosse Footwear. “During the quarter, we completed delivery of the large military contract that began in the fourth quarter of 2011 and saw increased sales of our tactical law enforcement boots and other innovative products to a variety of government customers. We also continued to penetrate into niche work market segments, such as mining, oil and gas exploration, and agriculture.
“Despite the adverse impact of unusually warm and dry weather during the winter, we’ve made good progress in reinvigorating our outdoor product line with our innovative new hiking and lifestyle boots to extend the appeal of our brands across a broader demographic. We also continued to build relationships with new major retailers in North America, gradually expand our international distribution and grow our direct channels. We believe LaCrosse is well-positioned to continue to capture market share and grow profitably over the long term.”
