Note 18 - Segment Information

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Reportable Segments - We have identified three reportable segments: Wholesale, Retail and Contract Manufacturing.

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., Canada, U.K. and other international markets, mainly Europe. 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 Outdoor Gear Store. Through our outdoor gear 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.

Contract Manufacturing. In our Contract Manufacturing segment, we include sales to the U.S. Military, private label sales and any sales to customers in which we are contracted to manufacture or source a specific footwear product for a customer.

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

	Twelve Months Ended
	December 31,
($ in thousands)	2022		2021		2020
NET SALES:
Wholesale	$	484,779	$	391,070	$	185,554
Retail		115,354		94,658		72,877
Contract Manufacturing		15,342		28,499		18,878
Total Net Sales	$	615,475	$	514,227	$	277,309
GROSS MARGIN:
Wholesale	$	165,059	$	140,166	$	66,336
Retail		57,817		47,792		34,283
Contract Manufacturing		2,343		6,578		4,116
Total Gross Margin	$	225,219	$	194,536	$	104,735

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)	2022		% of Sales			2021		% of Sales			2020		% of Sales
Work footwear	$	256,162		41.6	%	$	280,235		54.5	%	$	126,268		45.5	%
Outdoor footwear		183,121		29.8			76,031		14.8			21,074		7.6
Western		108,697		17.6			87,425		17.0			61,127		22.0
Duty and commercial military footwear		46,177		7.5			39,715		7.7			41,005		14.8
Military footwear		15,342		2.5			22,767		4.4			18,878		6.8
Other		3,581		0.6			5,149		1.0			5,575		2.0
Apparel		2,395		0.4			2,905		0.6			3,382		1.2
	$	615,475		100.0	%	$	514,227		100.0	%	$	277,309		100.0	%

Net sales to foreign countries represented approximately 6.2% of net sales in 2022, 6.9% of net sales in 2021 and 0.8% of net sales in 2020.

The net book value of fixed assets located outside of the U.S. totaled $12.6 million at December 31, 2022, of which approx imately $4.6 million resides in the Dominican Republic and approximatel y $8.0 million resides in China.