PORTLAND, Oregon -- LaCrosse Footwear, Inc.(Nasdaq: BOOT), a leading provider of branded work and outdoor footwear, reports its first quarter of 2007 consolidated net sales of $23.7 million, up 11% from $21.4 million in the first quarter of 2006. Net income was $0.6 million or $0.10 per diluted share in the first quarter of 2007, up 54% from $0.4 million or $0.06 per diluted share in the first quarter of 2006.
Sales to the work market were $15.4 million for the first quarter of 2007, up 13% from $13.6 million for the same period of 2006. Year-over-year growth in work sales reflects continued penetration into a variety of general and specialized work and uniform boot markets, as well as the early success of the Company's new line of high-performance safety apparel. Sales to the outdoor market were $8.3 million for the first quarter of 2007, up 7% from $7.8 million for the same period of 2006. Year-over-year growth in the outdoor market primarily reflects continued penetration into the hunting and rugged outdoor boot markets.
The Company's gross margin was a record 40.6% of net sales for the first quarter of 2007, up from 39.2% in the same period of 2006, an increase of 140 basis points. The year-over-year gross margin improvement was primarily the result of a price increase at the beginning of the first quarter of 2007 and fewer closeout sales during the quarter.
LaCrosse's total operating expenses were $8.8 million in the first quarter of 2007, down 5% sequentially from $9.2 million in the previous quarter, and up 12% from $7.8 million in the first quarter of 2006. The year-over-year increase primarily reflects the strategic expansion of our product development and sales teams, and costs related to our new Portland distribution center and offices.
As a result of anticipated lower seasonal demand in the first quarter, the Company reduced its inventory levels at March 31, 2007 by approximately $0.3 million or 1% from December 31, 2006. At the end of the first quarter of 2007, LaCrosse had cash and cash equivalents of $15.6 million, up 23% from $12.7 million at the end of 2006 and up 39% from $11.2 million at the end of the first quarter of 2006.
"We are pleased with our execution and financial performance for the first quarter, which is typically our slowest seasonal period," said Joseph P. Schneider, president and CEO of LaCrosse Footwear, Inc. "Our sales and earnings growth continued to be driven by the success of our new products and our ability to meet at-once demand allowed us to capitalize on favorable weather conditions in the latter half of the quarter. We continue to increase our brand equity and capture market share in work and outdoor markets that are quality and performance driven. Moreover, we are very encouraged by the positive customer response to our new fall lines of Danner and LaCrosse products."
"We further improved our gross margins and strengthened our balance sheet by remaining focused on target markets where our premium products, innovative technology and outstanding customer service create opportunities for sustainable and profitable growth. We also believe the significant investments in our organization and business infrastructure that we made in recent years are beginning to pay off, as we start to moderate operating expense increases and leverage our operating model."
LaCrosse will host a conference call today, April 30, 2007, to discuss its financial results at 2:00 PM Pacific (5:00 PM Eastern). A broadcast of the conference call will be available at www.lacrossefootwearinc.com>www.lacrossefootwearinc.com under "Investor Events" or by calling 800-218-0713 or +1 303-262-2138. A 48-hour replay will be available by calling 800-405-2236 or +1 303-590-3000 (Reservation No. 11085620). A replay will also be available on the Company's Web site.
About LaCrosse Footwear, Inc.
LaCrosse Footwear, Inc. is a leading developer and marketer of branded, premium and innovative footwear for expert work and outdoor users. The Company's trusted Danner(R) and LaCrosse(R) brands are distributed domestically through a nationwide network of specialty retailers and distributors, and internationally through distributors and retailers in Asia, Europe and Canada. Work customers include people in law enforcement, agriculture, firefighting, construction, industry, military services and other occupations that need high-performance and protective footwear as a critical tool for the job. Outdoor customers include people active in hunting, outdoor cross training, hiking and other outdoor recreational activities. For more information about LaCrosse Footwear products, please visit our Internet websites at www.lacrossefootwear.com and www.danner.com. For additional investor information, see our corporate website at www.lacrossefootwearinc.com>www.lacrossefootwearinc.com.
Media Contact:
David Carlson CFO (503) 262-0110, ext. 1331, or Erin Patterson, Public Relations Manager, (503)262-0110, ext. 1393, or epatterson@lacrossefootwear.com