Income grew, while sales fell at LaCrosse Footwear Inc in the third quarter.
For the period ended Sep, 24, 2011, the Portland, Ore.-based firm earned $1.7 million, or 25 cents a share, up from $1.1 million, or 17 cents, in the same period a year ago.
Income included a net benefit of approximately 7 cents a share from a legal settlement. Analysts were expecting earnings of 28 cents a share as polled by Yahoo Finance.
Revenue slipped 1 percent to $35.3 million, from $37.7 million last year, as sales to the work market declined 14 percent year over year.
Core work sales increased 12 percent, while sales to the outdoor market advanced 1 percent, primarily driven by hiking and cold weather products.
Joseph Schneider, president and CEO of LaCrosse, said in a statement that overall performance was impacted by the timing of military orders and a cautious retail spending environment in the firm’s wholesale channels.
“Despite consumer uncertainty in the retail spending environment, we continue to deepen our wholesale channel relationships, both in the U.S. and internationally, and we’re very encouraged by the customer response to our wide range of innovative new products for Spring 2012,” he added.
A bright spot was gross margin, which upped to 39.7 percent of sales, from 37.2 percent a year ago, reflecting a favorable product mix, increased at-once demand, fewer closeout sales of discontinued work apparel products and more favorable sourcing partnerships in Asia, the firm said.
LaCrosse’s cash and cash equivalents decreased to $506,000, from $3.6 million the same time a year ago, while inventories surged 67 percent. It also reduced long-term debt to $174,000, from $300,000.