Increased costs pushed LaCrosse Footwear, Inc. into the red in the second quarter.
For the second quarter ended June 25, the Portland, Ore.-based firm lost $185,000, or 3 cents a share, compared to earning a net income of $101,000, or 2 cents, in the second quarter of 2010. Net sales advanced 2 percent to $27.1 million, from $26.6 million.
Gross margin declined 240 basis points to 38.5 percent of revenue, due to an increase in closeout sales of discontinued work apparel products, the firm said.
Although operating expenses slipped 1 percent year-over-year, they were still larger than gross profit, resulting in an operational loss at the firm.
“Aside from continuing quarterly fluctuations in U.S. military orders, our business is performing well, with strong growth across our wholesale, direct and international channels,” said Joseph Schneider, president and CEO of LaCrosse, in a statement.
“As we move into the second half of 2011 … our stronger sales organization and distribution infrastructure continues to deepen our wholesale channel relationships, both in the U.S. and internationally. Our enhanced e-commerce platforms continue to expand our direct business,” he added.
Inventory doubled to $53.4 million at the end of the second quarter of 2011, as a result of low inventory levels in the second quarter of 2010 due to supply constraints and a strategic decision in 2011 to enhance the availability of core products in order to address future at-once demand.
LaCrosse ended the quarter with cash and cash equivalents of $622,000, down from $17.3 million as at a year earlier. Long-term debt stood at $201,000.