LaCrosse Footwear, Inc. (Nasdaq: BOOT) is a leading developer and marketer of premium, branded footwear for dedicated work and outdoor users. The Company's trusted Danner® and LaCrosse® brands are sold through a network of specialty retailers and distributors in North America, Europe and Asia. 

LaCrosse has been successful in increasing its brand equity in niche segments of the work and outdoor footwear markets that are quality and performance driven, which offer opportunities for sustainable and profitable growth over the long term. The Company is executing a growth strategy based on leveraging its powerful brands with technology innovation, compelling marketing initiatives and enhanced customer service.

Work and Outdoor Footwear Markets

LaCrosse competes in two market segments of the footwear industry. With total annual sales of approximately $3 billion, the work-related footwear market includes people employed in law enforcement, transportation, mining, oil and gas, military services and other occupations that need high-performance and protective footwear as a critical tool for the job. Unlike the outdoor market, the work market has year-around demand.

The outdoor footwear market has total annual sales of approximately $1 billion and includes people active in hiking, hunting, fishing, camping and other outdoor recreational activities, as well as consumers attracted to footwear reflecting an outdoor lifestyle. Outdoor customers are extremely brand conscious and innovation-driven, seeking products that have specific benefits, such as waterproof, ultra-lightweight and other high-tech materials designed for a specialized outdoor activity. This business tends to be quite seasonal, with the strongest sales in the second half of the year.

Strong Brands

One of the Company's biggest assets is the heritage and power of its two brands. Established in 1897, the LaCrosse name is associated with quality and addressing specific customer needs. Developed side-by-side with experienced end users, LaCrosse boots can be found in mines, oil rigs, industrial plants, road projects, backcountry hunting camps and many other places where serious performance matters.

Established in 1932, the Danner name symbolizes superior craftsmanship. Before a Danner boot leaves the factory, it's been touched and tested by over one hundred different craftsmen. With Danner boots, customers can see and feel the thickness of the leather and the quality details like triple stitching, branded hardware and outsoles, and more.

Multiple Distribution Channels

The Company sells its strong brands through multiple distribution channels. Its wholesale channel extends across North America, involving strong relationships with major retailers as well as local outdoor, uniform and specialty shoe stores. The Company operates world-class distribution facilities in Portland, Oregon and in the Midwest in order to address the continuing industry trend towards at-once demand, which is strongly aligned with LaCrosse's core competencies and focus on operational excellence.

The Company's government sales channel includes trusted partnerships with various branches of the US military, with whom LaCrosse has jointly developed and provided innovative footwear for extended wear and high performance in harsh mountain terrain and challenging weather conditions. In addition to periodic large contracts with the US Army and Marine Corps, the Company continues to its market penetration at both unit and individual service personnel level. This includes AAFES, border patrol, secret services, and various other government branches that value LaCrosse's innovative product engineering, high-quality domestic manufacturing capabilities and commitment to customer service excellence.

In line with its long-term strategy to diversify and strengthen its sales channels, the Company has made progress with its emerging direct and international channels. LaCrosse has established a new Scandinavia sales office in order to expand its European business and it works with local distributors in Japan. The Company is also leveraging recent investments in enhancing its online platform, which has been particularly successful with lifestyle products and strengthening brand awareness. The Company expects strong revenue growth from its direct and international channels in coming years.

International Sourcing and Domestic Manufacturing

The Company has structured its sourcing and manufacturing operations to maximize efficiencies, flexibility and quality. Approximately 70% of its production is sourced from manufacturing partners in China and other regions of Asia. To strengthen both customer responsiveness and product quality, the Company operates an international office in China to oversee its outsourced manufacturing and ensure high quality standards, as well as continue to work to reduce product development lead-times. LaCrosse also owns and operates a world-class, domestic manufacturing facility in Portland, Oregon that offers flexible capacity to efficiently meet growing worldwide demand for USA-made craftsmanship.

Growth Strategy