Premium footwear marketer LaCrosse outdoor sales stronger in Q2
02 Aug '05
4 min read
Sales to the outdoor market were $8.9 million for the second quarter of 2005, up 36% from $6.5 million in the same period of 2004. While outdoor sales are typically stronger in the second half of the year, the year-over- year growth in the second quarter of 2005 reflects stronger penetration into various hunting markets, combined with an additional $1.0 million of sales relating to the early delivery of preseason fall orders.
Sales to the work market were $10.8 million for the second quarter of 2005, compared to $12.1 million in the same period of 2004. Work sales in the second quarter of 2004 included revenue from GSA and PVC totaling $2.0 million. In the second quarter of 2005, work sales grew in a number of targeted product categories, including boots for public safety and overall general work.
In the second quarter of 2005, the Company's gross margin was 35.8% of consolidated net sales, an increase from 32.1% in the same period of 2004. The margin improvement of 370 basis points reflects increased sales of new higher-margin products as well as their strategic discontinuation of lower margin products, including PVC.
The Company's selling and administrative expenses increased 5.3% from the second quarter of 2004, due primarily to their continued investments in product development.
As a result of its continued profitability, LaCrosse had cash and cash equivalents of $2.0 million and zero outstanding bank debt at the end of second quarter of 2005, significantly improved from funded debt of $3.4 million at the end of second quarter of 2004.
marketing@alchempro.com
