Outdoor and workboot firm Lacrosse Footwear Inc. saw third-quarter earnings drop 21 percent, despite an increase in overall sales.
The Portland, Ore.-based company said Tuesday at the close of the stock market that net earnings were $2.2 million, or 35 cents a diluted share, in the third quarter, compared with income of $2.8 million, or 43 cents, a year ago. Revenue increased a little more than 1 percent, to $40.8 million.
“We continued to grow our work business and took important steps to improve the long-term efficiency and strength of our business,” LaCrosse President and CEO Joseph Schneider said in a release. “During the third quarter of 2009, we continued to win more business within various branches of the U.S. military, reflecting the proven durability and performance of our premium footwear in the demanding terrain of Afghanistan.”
Sales in the work market, which included military footwear, were $22.1 million, up 14 percent for the third quarter of 2009, while outdoor sales were down 10 percent to $18.7 million. LaCrosse also reported cash and cash equivalents of $3.5 million at the end of the quarter and noted that the $3.8 million year-over-year increase in inventory reflects growth in domestic production for the company’s expanding military business.
“We continued to execute our strategic initiatives and invest in our business,” Schneider said. “We have also strengthened our position with a number of major retailers and taken a strong inventory position on several core product lines in anticipation of fulfilling their growing at-once demand.”