LaCrosse Footwear, Inc. reported sales of $37.7 million for the third quarter ended Sept. 25, down 7.6% from a year earlier as slow growth to outdoor markets could not make up for a drop in military sales. The company also said that capacity constraints in China prevented it from fulfilling a significant number of orders for both outdoor and work boots in the quarter, but that it is in the process of mitigating those impacts.
Lacrosse said its outdoor footwear sales reached $19.0 million in the third quarter ended Sept. 25, 2010, up 2.1% from the same quarter a year ago. For the first three quarters of 2010, sales to the outdoor market were $34.9 million, up 4% from $33.6 million for the same period in 2009. The growth in outdoor sales for the third quarter of 2010 reflects increased demand for hunting boots.
Sales to the work market were $18.7 million, down 16% from $22.1 million in the same period of 2009. For the first three quarters of 2010, sales to the work market were $63.6 million, up 1% from $63.0 million for the same period of 2009.
At the end of the third quarter of 2010, LaCrosse had cash and cash equivalents of $3.6 million, up from $3.5 million at the end of the third quarter of 2009. During the first three quarters of 2010, the company has paid dividends of $8.8 million to its shareholders and made capital investments of $7.8 million primarily for its new factory facility and factory store.
“While quarterly fluctuations in our military business and the supply constraints in China continued to impact our business in the third quarter, we saw stronger demand for our core work and outdoor products,” said Joseph P. Schneider, president and CEO of LaCrosse Footwear, Inc. “We remain confident that our business fundamentals are sound. We have continued to strengthen our customer relationships, penetrate further into a variety of niche work markets and see our new spring products being well received by our customers.
LaCrosse Footwear, Inc.
Condensed Consolidated Statements of Income
(Amounts in thousands, except per share amounts)
|Quarter Ended||Three Quarters Ended|
|September 25,||September 26,||September 25,||September 26,|
|Cost of goods sold||23,666||25,040||59,815||58,877|
|Non-operating expense, net||(51||)||(235||)||(106||)||(304||)|
|Income before income taxes||2,003||3,671||4,874||4,554|
|Income tax provision||857||1,450||1,965||1,367|
|Net income per common share:|
|Supplemental Product Line Information:|
|Work Market Sales||$||18,651||$||22,116||$||63,604||$||62,996|
|Outdoor Market Sales||19,031||18,645||34,858||33,651|