LaCrosse Footwear net sales for the fourth quarter of 2004 were up 5% to $28.7 million compared to $27.3 million in 2003. The Work divisions sales were $15.7 million for the fourth quarter, up 8.3% from $14.5 million last year. The Outdoor divisions sales inched up 1.5% to $13.0 million compared to $12.8 million LY.
Gross margin was 36.1% of sales for the fourth quarter, up 500 basis points from 31.1% in 2003. The increase was said to be caused by increased sales of higher-margin products and improved factory utilization due to increased production volume. The company cut its inventory by 29.4% and improved inventory turns by 22%, but Q4 operating expenses increased 110 basis points from 25.9% of sales.
This all added up to nearly double LaCrosses net income, which was $2.2 million in the fourth quarter of 2004, up 95.8% from $1.1 million, in the fourth quarter of 2003. Diluted EPS was 37 cents per share versus 19 cents per share last year.
For the full 2004 year, the work divisions sales were $60.7 million, up 17.0% from $51.9 million last year. Outdoor sales were $44.8 million for the full year 2004, up 2.3% from $43.8 million last year. Total company sales were up 10.2% from $95.7 million last year to $105.5 million in 2004.
Gross margin was 33.8% of sales for the full-year, up 300 basis points from 30.8% in 2003. Full-year operating expenses were cut by 40 basis points to 26.6% of sales compared to 27.0% last year. Net income for the year increased 165% to $7.0 million compared to $2.6 million last year. Diluted EPS was $1.15 for the 2004 fiscal year versus 44 cents in 2003.
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