LaCrosse Footwear reported that first quarter sales climbed 11% to $23.7 million from $21.4 million. Sales to the outdoor market grew 7% to $8.3 million, due to continued penetration into the hunting and rugged outdoor boot markets. Net income jumped 54% to $604,000, or 10 cents a share, from $392,000, or 6 cents, a year ago.
Sales to the work market increased 13% to $15.4 million reflecting continued penetration into a variety of work and uniform boot markets, as well as the early success of a new high-performance safety apparel line.
Joe Schneider, president and CEO of LaCrosse, said results continue to be driven by the success of new products but also noted that the company's ability to meet at-once demand allowed it to capitalize on favorable weather conditions in the latter half of the quarter.
“We continue to increase our brand equity and capture market share in work and outdoor markets that are quality and performance driven,” said Schneider. “Moreover, we are very encouraged by the positive customer response to our new fall lines of Danner and LaCrosse products.”
The bottom line was bolstered by an improvement in gross margin to 40.6% from 39.2%, primarily the result of a price increase at the beginning of the quarter and fewer closeouts. Operating expenses were $8.8 million in the quarter, down 5% sequentially from $9.2 million in the previous quarter, but up 12% from $7.8 million in the first quarter of 2006. The year-over-year increase primarily reflects the strategic expansion of product development and sales teams, and costs tied to a new Portland distribution center and offices.
