Note 16 - Segment Information

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

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)	2020		2019
NET SALES:
Wholesale	$	185,554	$	179,519
Retail		72,877		64,824
Military		18,878		26,065
Total Net Sales	$	277,309	$	270,408
GROSS MARGIN:
Wholesale	$	66,336	$	61,133
Retail		34,283		28,941
Military		4,116		7,611
Total Gross Margin	$	104,735	$	97,685

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)	2020		% of Sales			2019		% of Sales
Work footwear	$	126,268		45.5	%	$	123,021		45.5	%
Western footwear		61,127		22.0			52,976		19.6
Duty and commercial military footwear		41,005		14.8			42,583		15.7
Outdoor footwear		21,074		7.6			18,494		6.8
Military footwear		18,878		6.8			26,064		9.6
Apparel		3,382		1.2			2,782		1.0
Other		5,575		2.0			4,488		1.7
	$	277,309		100.0	%	$	270,408		100.0	%

Net sales to foreign countries represented approximately 0.8% of net sales in 2020 and 1.4% of net sales in 2019.