Supply-side limitations in Asia have hit the top and bottom lines at LaCrosse Footwear.
For the period ended June 26, the firm today reported a second-quarter net profit of $0.1 million, or 2 cents a share, which is down 94 percent from $1.7 million, or 26 cents, in the same period a year ago.
Net sales were down 11 percent to $26.6 million, compared with $30 million in the second quarter of 2009.
Both the work and outdoor categories suffered declines in the quarter.
Sales in the work market were $18.6 million, down 15 percent from $21.9 million in the previous corresponding quarter, due primarily to the timing of U.S. government orders.
Sales in the outdoor market were impacted by constraints on the supply of finished goods caused by capacity limitations at the firm’s manufacturing partners in China, said a company statement, and were down 2 percent to $8 million.
However, the company continued to strengthen its balance sheet, generating $9.9 million of cash from operations in the first half of 2010. As of June 26, LaCrosse had cash and cash equivalents of $17.3 million, up from $5.1 million as of June 27, 2009.
Moving into the back half of the year, LaCrosse President and CEO Joseph P. Schneider said the firm is focused on trying to solve the industry-wide supply problem that impacted their first-half sales.
“While we can expect to see quarter-to-quarter fluctuations in future government channel sales, the long-term trends in our government, wholesale, direct and international distribution channels look increasingly positive, along with strong at-once demand from our wholesale channel partners and an improved consumer spending environment,” he added.
LaCrosse also announced today a quarterly dividend of 12.5 cents a share of common stock, which will be paid to shareholders on September 18.