Outlook improving for LaCrosse Footwear

0 Comments | La Crosse Tribune, Aug 17, 2002 | by Magney, Reid

PORTLAND, Ore. - LaCrosse Footwear Inc. this week reported more losses but said the financial picture is improving since closing its factory in La Crosse.

The company reported a second-quarter loss of $3.8 million on sales of $20 million. One year ago, the company lost $5.9 million on sales of $26.1 million. Net sales for the first six months of 2002 were $42.8 million compared with $55.2 million for the first half of 2001.

Company officials blamed the continuing losses on reduced demand in both retail and industrial markets caused by a soft economy. The company is also dealing with reduced fall pre-season orders. However, the company said it is taking new steps to control costs and reduce inventory.

"Overall, we are operating in a very challenging environment," said Joseph P. Schneider, president and CEO. "To meet these challenges, we continue to focus on fundamentals: increasing product margins through effective sourcing; improving sales programs to partner better with our dealers and distributors; controlling costs and expenses, and reducing inventory and short-term debt."

Schneider said gross margins improved from 12.9 percent for the second quarter ending June 30, 2001, in which the company its manufacturing plant in La Crosse, to 20.7 percent for the same period in 2002.

"For the six-month period, gross margins have improved to 23.4 percent from 19.6 percent. This improvement is a result of the prior year including charges related to restructuring costs for closing the La Crosse factory," he said in a statement.

Shares of Footwear stock closed at $2.16 Friday, compared with the stock's 52week high of $4.81.