LaCrosse Footwear saw previously-consistent sales to its Work market come to an abrupt halt during the second quarter, and results subsequently slipped across the board. The Work segment, which the company has leaned on in previous quarters, fell 14.9% to $18.6 million from $21.9 million in the year-ago period. Management attributed the drop in sales to the Work market to ill-timed ordering schedules from the U.S. government.
The Work market wasn’t the only detractor, however. The company’s Outdoor market, which has fared well over the past few reporting periods, slipped 2.1% to $8.0 million from $8.2 million in the prior-year period. BOOT said the decrease was due to the impact of constraints on the supply of finished goods, which is a result of capacity limitations experienced by manufacturing partners in China. Management noted that sales to the Outdoor market were $15.8 million in the first half of 2010, up 5.5% from H1 2009.
On a consolidated basis, net sales for Lacrosse were $26.6 million, down 11.4% from $30.0 million in the second quarter of 2009.
Net income was $101,000, or 2 cents per diluted share, down from $1.7 million, or 26 cents per diluted share, in the year-ago period. Gross margin for the quarter was 40.9% of net sales, comparable to the same period of 2009.