As has been the case in recent reporting periods, strong orders from the Work market propelled consolidated first quarter sales for LaCrosse Footwear, Inc. 32.1% to $34.2 million from $25.9 million a year ago.

 

Management said the Work market, which grew 38.4% to $26.3 million from $19.0 million, benefitted from continued demand from the U.S government as well as increased demand from various work markets including mining, energy-related industries and public safety.

 

For the Outdoor market, sales for the first quarter ended March 27, 2010 improved by 15.0% to $7.9 million from $6.9 million in 2009, an improvement that management said was due primarily to a better retail environment and increasing demand for the LaCrosse brands cold weather and hunting products.

 

Management added that the company has seen stronger at-once demand from both new and longstanding wholesale channels, reflecting a more stable retail environment, new store openings and the success of new products.

 

Inventory levels improved by $6.1 million, or 21.7% from 2009, which management attributed to stronger-than-anticipated demand, improved sell-through in Europe and inventory reduction in preparation for anticipated at-once demand on core products this fall.

 

On a conference call with analysts, company President and CEO Joe Schneider said the companys approach to industry position really paid off in the first quarter.

 

Net income for the quarter was $1.7 million, or 25 cents per diluted share, compared with a net loss of $700,000, or 11 cents per diluted share, in Q1 2009.

 

Gross margins improved to 40.2% of net sales compared to 37.9% of sales in the year-ago period, which management attributed to improved manufacturing efficiencies in the companys domestic facility. 

 

Operating expenses were up 2% due to a re-allocation of operating expenditures in order to expand domestic sales, marketing and product development efforts as well as an increased incentive compensation expense recognized due to higher quarterly profits.

 

While management declined to give specific numbers, they said LaCrosse has emerged from 2009 in a strong financial position and maintains that the company is positioned to build its business within new markets.

 

For the near future, management said the companys third quarter move into a new Danner factory in Portland, OR, will significantly increase [the companys] capacity to meet growing worldwide demand for (customers)