LaCrosse Footwear has created a subsidiary in Copenhagen, LaCrosse Europe, hoping to expand in the European market. It bought the operation for $3.2 million from its long-time distributor there, Gateway Footgear. The company was responsible for sales throughout Europe, but it has been successful mainly in Denmark with the colorful rubber boots of the American firm.
This announcement comes as LaCrosse announces increased sales and earnings for the second quarter of 2008. Revenues for the period, ended June 28, were up by 11.6 percent to $27.8 million, while net income jumped by 47.1 percent to $1.4 million. The corresponding gross margin grew by 1.2 percentage points to 40.4 percent as a result of higher prices and fewer sales returns, discounts and allowances.
LaCrosse’s work boot segment fared quite well, with sales up by 31.9 percent to $17.4 million. The company attributed this growth to shipped military orders as well as penetration into niche markets in the segment. The outdoor market slipped, though, dropping by 11.2 percent to $10.5 million as a result of the cautious economic environment in North America. The company is confident, however, that it is poised to jump back in the fray once retail spending improves.
