As was the case in the preceding reporting periods of 2009, LaCrosse Footwear continued to laud its military business as its primary growth driver for a fourth quarter that saw the company double its profits on revenues that surged more than 20%.
LaCrosse management said the company would continue to expand its reach from the Marine Corps and the Army to the Special Forces, Border Patrol, Secret Service and other security units. Sales to the companys Work markets, which includes its Military category, grew 25% to $25.2 million in the fourth quarter. Sales to the Outdoor market were up 16% to $17.3 million in the fourth quarter, which management said reflected strong at-once demand across a number of outdoor boot categories.
LaCrosse said growth in both of its major categories drove sales to a quarterly-record $42.5 million in the fourth quarter, up 20.9% from sales of $35.1 million in the year-ago period. As noted, the companys bottom line nearly doubled, as LaCrosse posted a net income of $2.3 million, or 36 cents per diluted share, compared to a net income of $1.2 million, or 18 cents per diluted share, in the year-ago period. Gross margins for the quarter were 38.3%, down slightly from 38.4% in the year-ago period. In a conference call with analysts, management attributed the decline to a greater portion of revenue coming from military shipments and cost increased associated with key rubber styles.
For the fourth quarter management said the company saw stronger at-once demand from both new and longstanding retail channels which was boosted by inclement weather in many regions.
The company also said it was pleased with its inventory management, which president and CEO Joe Schneider said was the cleanest in years. LaCrosse achieved a $1.6 million year-over-year reduction in inventory.
