14. SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2011

Segment Reporting Disclosure [Text Block]

14. SEGMENT INFORMATION

Operating Segments - We operate our business through three business segments: wholesale, retail and military.

Wholesale. In our wholesale segment, our products are offered in over ten thousand 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 and other specialty retailers.

Retail. In our retail segment, we sell our products directly to consumers through our Lehigh mobile and retail stores, our Rocky outlet store and our websites. Our Lehigh operations include a fleet of trucks, supported by small warehouses that include retail stores, which we refer to as mini-stores. 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. In July 2009, we were awarded a $29.0 million blanket purchase order from the GSA to produce footwear for the U.S. Military. While there is approximately $10 million remaining under this purchase order, we do not currently expect to make any significant additional shipments. We currently do not expect a renewal of this contract.

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The following is a summary of segment results for the Wholesale, Retail, and Military segments.

	Years Ended December 31,
	2011		2010		2009
NET SALES:
Wholesale	$	192,554,089	$	188,268,830	$	174,260,798
Retail		44,812,808		47,476,715		50,007,177
Military		2,232,199		17,046,718		5,217,600
Total Net Sales	$	239,599,096	$	252,792,263	$	229,485,575
GROSS MARGIN:
Wholesale	$	66,936,863	$	65,470,287	$	60,562,741
Retail		20,695,454		21,785,077		23,435,034
Military		298,438		2,117,350		559,581
Total Gross Margin	$	87,930,755	$	89,372,714	$	84,557,356

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:

	2011		% of Sales			2010		% of Sales			2009		% of Sales
Work footwear	$	121,731,462		50.8	%	$	133,970,454		53.0	%	$	124,095,030		54.1	%
Outdoor footwear		26,960,781		11.3	%		26,066,047		10.3	%		26,541,959		11.6	%
Western footwear		32,101,389		13.4	%		30,707,353		12.1	%		29,522,876		12.9	%
Duty and commercial military footwear		34,278,075		14.3	%		22,190,068		8.8	%		19,869,232		8.7	%
Military footwear		2,232,199		0.9	%		17,046,718		6.7	%		5,217,600		2.3	%
Apparel		12,954,362		5.4	%		11,529,989		4.6	%		12,210,926		5.3	%
Other		9,340,828		3.9	%		11,281,634		4.5	%		12,027,952		5.2	%
	$	239,599,096		100	%	$	252,792,263		100	%	$	229,485,575		100	%

Net sales to foreign countries, primarily Canada, represented approximately 4.1% of net sales in 2011, 3.1% of net sales in 2010 and 2.4% of net sales in 2009.