Significant strength from the Work market drove consolidated fourth quarter revenues 22.5% for LaCrosse Footwear in the period ended Dec. 31. Net sales for the Portland, OR-based maker of footwear improved to $52.1 million from $42.5 million in the prior-year period. Earnings for the quarter were $4.0 million, or 60 cents per diluted share, compared to $2.3 million, or 36 cents per diluted share, in the prior-year quarter.
Sales to the Work market improved 23.6% to $31.2 million for the quarter, boosted by growth in various areas of the U.S. government as well as in specialized work footwear categories.
Outside of the Government channel BOOT saw strong year-over-year demand for core work boots in the fourth quarter. The large military orders tend to fluctuate from quarter to quarter, a pattern the company expects to continue going forward.
Sales to the company’s Outdoor market were up 21.0% to $20.9 million in the fourth quarter, reflecting stronger demand in the hunting and rugged outdoor categories.
Gross margins for the quarter were 39.3% of sales, up 90 basis points from 38.4% of sales in the prior-year quarter, which management attributed to a reduction in the volume of close-out sales.
In a conference call with analysts, LaCrosse President and CEO Joe Schneider said supply constraints and “uncertain timing of customer orders” during the second and third quarter helped push more business into the fourth quarter, resulting in the solid gains and record revenue for the year. Schneider added that the company’s Pronghorn hunting boot had boosted sales of the outdoor category while the overall business was favorably affected by better business conditions of the company’s wholesales channel partners.
The company increased inventories cof ore products at year-end to improve availability for future at-once demand.
