LaCrosse Footwear second quarter sales were $19.8 million, an increase of 6% from $18.6 million in the second quarter of 2004. Sales in 2004 included $500,000 from General Services Administration delivery orders for uniform boots and $1.5 million from the discontinued PVC boot line.

Sales to the outdoor market were $8.9 million, up 36% from $6.5 million in 2004. LaCrosse management said that outdoor sales are typically stronger in the second half of the year but the year-over-year growth in Q2 reflects stronger penetration into various hunting markets. Helping the gain was an additional $1.0 million of sales relating to the early delivery of preseason orders.

Sales to the work market declined 10.7% to $10.8 million compared to $12.1 million in 2004. Work sales in the second quarter of 2004 included revenue from GSA and PVC totaling $2.0 million. Excluding these discontinued, lower margin sales, there would have been an increase of roughly 7%.

LaCrosse Q2 gross margins were 35.8% of sales, a 370 basis point increase from 32.1% in 2004 reflecting increased sales of new higher-margin products as well as the company’s strategic discontinuation of lower margin products, including PVC. The company's selling and administrative expenses increased 5.3% from the second quarter of 2004, due primarily to continued investments in product development. This brought net income to $400,000 or 7 cents per common share in Q2, an increase from a net loss of $200,000 or 4 cents loss per common share in the second quarter of 2004.