LaCrosse Footwear, Inc. was able to eke out a slight profit for the second quarter compared to a loss of $3.8 million fro the year-ago period. Consolidated net sales decreased 6.9% to $18.6 million from $20.0 million in the second quarter of 2002.
The company saw continued improvement in the retail channel as strong sales in the recreational hunting and rubber boot categories drove sales of the LaCrosse brand up 7.7% in the channel, while improved product offerings for niche hunting, occupational and uniform markets pushed Danner brand sales up 13.4% in Q2.
Net sales of LaCrosse and Rainfair brand products in the Safety and Industrial channel declined 37% due to the “soft economy” and fewer low-margin products sold in the private label and mass merchant markets.
Gross margins improved by 950 basis points for the quarter to 30.2% from 20.7% of net sales in Q2 LY due to an increase in sales of fresher, higher-margin products, lower close-out sales and the “elimination of lower-margin product lines”. Inventories decreased 14.4% to $25.0 million.
LaCrosse is continuing with its move to transform the company into a variable-cost brand marketing entity from a fixed-cost manufacturing model. Operating expenses declined 27.2% in the quarter as a result, leading to the improved net earnings picture.
