SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2019

16. SEGMENT INFORMATION

Reportable Segments - We operate our business through three reportable segments: Wholesale, Retail and Military.

Wholesale. In our Wholesale segment, our products are offered in over 10,000 retail locations representing a wide range of distribution channels in the U.S. and Canada. These distribution channels vary by product line and target market and include sporting goods stores, outdoor retailers, independent shoe retailers, hardware stores, catalogs, mass merchants, uniform stores, farm store chains, specialty safety stores, specialty retailers and online retailers.

Retail. In our Retail segment, we market directly to consumers through our Lehigh business-to-business including direct sales and through our CustomFit websites, consumer e-commerce websites, third-party marketplaces, and our Rocky outlet store. Through our outlet store, we generally sell first quality or discontinued products in addition to a limited amount of factory damaged goods, which typically carry lower gross margins.

Military. While we are focused on continuing to build our Wholesale and Retail business, we also actively bid, from time to time, on footwear contracts with the U.S. military. Our sales under such contracts are dependent on us winning the bids for these contracts. We are currently fulfilling several multiyear contracts for the U.S. military.

The following is a summary of segment results for the Wholesale, Retail, and Military segments for the years ended December 31,


		Twelve Months Ended
		December 31,
($ in thousands)		2019		2018
NET SALES:
Wholesale	$	179,519	$	173,124
Retail		64,824		53,216
Military		26,065		26,354
Total Net Sales	$	270,408	$	252,694

GROSS MARGIN:
Wholesale	$	61,133	$	57,792
Retail		28,941		23,650
Military		7,611		5,587
Total Gross Margin	$	97,685	$	87,029

Segment asset information is not prepared or used to assess segment performance.

Product Group Information - The following is supplemental information on net sales by product group for the years ended December 31:


($ in thousands)		2019	% of Sales			2018	% of Sales
Work footwear	$	123,021	45.7	%	$	116,022	45.9	%
Western footwear		52,313	19.3			47,313	18.7
Duty and commercial military footwear		42,583	15.7			40,580	16.1
Lifestyle footwear		663	0.2			596	0.2
Outdoor footwear		18,494	6.8			15,811	6.3
Military footwear		26,064	9.6			26,354	10.4
Apparel		2,782	1.0			2,424	1.0
Other		4,488	1.7			3,594	1.4
	$	270,408	100.0	%	$	252,694	100.0	%

Net sales to foreign countries represented approximately 1.4% of net sales in 2019 and 1.9% of net sales in 2018.