8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report
(Date of earliest event reported): February 7, 2005

LaCROSSE FOOTWEAR, INC.

(Exact name of registrant as specified in its charter)

Wisconsin	0-23800	39-1446816
(State or other jurisdiction of incorporation)	(Commission file number)	(IRS employer identification number)

18550 NE Riverside Parkway, Portland, Oregon 97230

(Address of principal executive offices, including zip code)

(503) 776-1010

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

INDEX TO CURRENT REPORT ON FORM 8-K
	Item 2.02.      Results of Operation and Financial Condition.
	Item 9.01.      Financial Statements and Exhibits.
SIGNATURES
EXHIBIT INDEX
EXHIBIT 99.1

LaCROSSE FOOTWEAR, INC.
FORM 8-K

INDEX TO CURRENT REPORT ON FORM 8-K

Item	Description	Page
2.02	Results of Operation and Financial Condition		1
9.01	Financial Statements and Exhibits		1
	(c)           Exhibits

Exhibit No.	Description
99.1	LaCrosse Footwear, Inc. Press Release, dated February 7, 2005, announcing fourth quarter and fiscal year 2004 earnings.

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LaCROSSE FOOTWEAR, INC.
FORM 8-K

Item 2.02.      Results of Operation and Financial Condition.

On February 7, 2005, LaCrosse Footwear, Inc. issued a press release announcing fourth quarter and fiscal year 2004 earnings. A copy of the press release is attached as Exhibit 99.1.

Item 9.01.      Financial Statements and Exhibits.

(c)           Exhibits.

Exhibit No.	Description
99.1	LaCrosse Footwear, Inc. Press Release, dated February 7, 2005, announcing fourth quarter and fiscal year 2004 earnings.

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SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed by the undersigned thereunto duly authorized.

	LaCROSSE FOOTWEAR, INC.
Dated: February 7, 2005	By:	/s/ Joseph P. Schneider
		Joseph P. Schneider
		President and Chief Executive Officer

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EXHIBIT INDEX

Exhibit No.	Description
99.1	LaCrosse Footwear, Inc. Press Release, dated February 7, 2005, announcing fourth quarter and fiscal year 2004 earnings.

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EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact:
David Carlson	Michael Newman
Executive Vice President and	Investor Relations
Chief Financial Officer	StreetConnect, Inc.
LaCrosse Footwear, Inc.	800-654-3517
503-766-1010 (ext. 1331)

LACROSSE FOOTWEAR REPORTS
FOURTH QUARTER AND YEAR-END RESULTS
Strong Sales, Gross Margin and Earnings Growth

Portland, Ore.—February 7, 2005 — LaCrosse Footwear, Inc. (Nasdaq/NMS: BOOT), a leading provider of branded work and outdoor footwear for expert users, today reported results for the fourth quarter and year ended December 31, 2004.

For the fourth quarter of 2004, LaCrosse reported consolidated net sales of $28.7 million, up 5% from $27.3 million in the fourth quarter of 2003. For the full year 2004, net sales were $105.5 million, up 10% from $95.7 million in 2003. Consolidated net income was $2.2 million, or $0.37 per share, in the fourth quarter of 2004, up 96% from $1.1 million, or $0.19 per share, in the fourth quarter of 2003. For the full year 2004, consolidated net income was $7.0 million, or $1.15 per share, up 165% from $2.6 million, or $0.44 per share, in 2003.

The Company has successfully increased sales of both its work (formerly called “occupational”) and outdoor (formerly “recreational”) footwear. Work sales were $15.7 million for the fourth quarter and $60.7 million for the full year 2004, up from $14.5 million and $51.9 million, respectively, for the same periods in 2003. The growth in work sales for the year spanned multiple product categories, including boots for public safety, general work and firefighting. Outdoor sales were $13.0 million for the fourth quarter and $44.8 million for the full year 2004, up from $12.8 million and $43.8 million, respectively, for the same periods in 2003. The growth in outdoor sales for the year included stronger penetration into the outdoor rugged/casual and hunting markets.

Work sales in the fourth quarter of 2004 included $2.2 million from General Services Administration (GSA) delivery orders for uniform boots and $0.3 million from the discontinued PVC boot line. The Company has fulfilled its GSA delivery orders to date and PVC boots will no longer contribute revenue in coming periods. A table at the end of this release provides the historic quarterly revenue contributions for GSA and PVC, as well as the comparison of work and outdoor sales.

The Company continued to improve its overall gross margin, which was 36.1% of net sales for the fourth quarter of 2004, up from 31.1% for the same period of 2003, an increase of 500 basis points. The continued margin improvement reflects the increased sales of the Company’s new higher-margin products and improved factory utilization due to increased production volume. Selling and administrative expenses increased 8.9% from the fourth quarter of 2003, due primarily to increased incentive compensation and investments in sales and marketing efforts.

Continued improvements in systems, forecasting and management processes helped enable the Company to lower its inventory by $7.1 million from the end of 2003 and increase inventory turns by 22%. As a result of

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improved profitability and asset management, operating cash flow for the year was $15.5 million, which allowed the Company to eliminate its funded debt and achieve a cash balance of $7.1 million at the end of 2004.

“We are pleased with our growth in sales, gross margins and earnings for the quarter and the year,” said Joseph P. Schneider, President and CEO of LaCrosse Footwear, Inc. “During 2004, we turned an important corner, refocusing on profitable sales growth and increasing our brand equity in both the work and outdoor footwear markets. The increase in sales was driven primarily by the success of our innovative new products, such as our Quad Comfort^TM line of LaCrosse work boots and our Danner Pronghorn^TM hunting boots, selected “Best of the Best” for 2004 by Field & Stream magazine. We also did an excellent job of fulfilling the GSA requirements efficiently and on schedule.”

“Our business restructuring in recent years has resulted in significantly improved operating efficiencies. We have trimmed less profitable parts of our business and benefited from new higher-margin products. We also managed to control costs and reallocate our expenses to focus on key strategic areas of our business, such as investing in more information technology for our corporate and customer support systems. Our improved overall execution is reflected in our strong bottomline performance, and we have used the positive cash flows to eliminate our debt and strengthen our balance sheet.”

“As we move into 2005, we believe LaCrosse Footwear is well positioned to execute our growth strategy. To drive future growth, we are now investing in our product development, marketing and sales organizations. We are applying more resources to better leverage our distribution channels, diversify our revenue base with innovative new products and penetrate deeper into a variety of targeted markets. Our long-term objective is to become the premier work and outdoor footwear company in the world. We are pleased with our progress and excited about the road ahead.”

During 2004, the Company utilized its remaining federal net operating loss carryforwards. As a result, the effective tax rate was approximately 4% for fiscal 2004. The Company expects income tax expense of approximately 35% on earnings in 2005 and approximately 37% in 2006 and beyond.

About LaCrosse Footwear

LaCrosse Footwear is a leading developer and marketer of branded, premium and innovative footwear for expert work and outdoor users. The Company’s trusted Danner® and LaCrosse® brands are distributed domestically through a nationwide network of specialty retailers and distributors, and internationally through distributors in Asia and Europe. Work customers include people in law enforcement, agriculture, firefighting, construction, industry, military services and other occupations that need high-performance and protective footwear as a critical tool for the job. Outdoor customers include people active in hunting, outdoor cross training, hiking and other outdoor recreational activities. For more information about LaCrosse Footwear products, please visit our Internet websites at www.lacrossefootwear.com, www.danner.com, www.firetechboots.com and www.lacrossesafety.com. For additional investor information, see our corporate website at www.lacrossefootwearinc.com.

Forward-Looking Statements

This press release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that forward-looking statements such as statements of the Company’s anticipated revenue and earnings are dependent on a number of factors that could affect the Company’s operating results and could cause the Company’s actual future results to differ

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materially from any results indicated in this release or in any forward-looking statements made by, or on behalf of the Company. These factors include, but are not limited to:

•   Commodity price increases including: rubber and petroleum. Any price increases will affect transportation costs, footwear component costs, and ultimately product costs.

•   Consumer confidence and related demand for footwear, including work and outdoor footwear.

•   Weather and its impact on the demand for outdoor footwear.

•   Dealer inventory levels.

•   Company inventory levels, including inventory levels required for foreign-sourced product and the related need for accurate forecasting and the limited ability to resupply dealers for fill-in orders for foreign-sourced product.

•   Potential problems associated with the manufacture, transportation and delivery of foreign-sourced product.

•   United States and/or foreign trading rules, regulations and policies, including export/import regulations and regulations affecting manufacturers and/or importers.

•   General domestic economic conditions, including interest rates and foreign currency exchange rates.

The Company cannot provide any assurance that future results will meet expectations. Results could differ materially based on various factors, including Company performance and market conditions. In addition, historical information should not be considered an indicator of future performance. Additional factors may be detailed in LaCrosse Footwear’s Annual Report on Form 10-K for the year ended December 31, 2003. The Company has no obligation to update or revise forward-looking statements to reflect the occurrence of future events or circumstances.

LaCrosse Footwear, Inc.
SELECTED FINANCIAL DATA
(Amounts in thousands, except per share amounts)

Condensed Consolidated Statements of
Operations	Quarter Ended						Year Ended
	31-Dec-04			31-Dec-03			31-Dec-04			31-Dec-03
Net sales	$	28,660		$	27,325		$	105,470		$	95,687
Cost of goods sold		18,324			18,823			69,822			66,201
Gross profit		10,336			8,502			35,648			29,486
Operating expenses		7,735			7,102			28,008			25,820
Operating income		2,601			1,400			7,640			3,666
Non-operating expenses, net		(47	)		(265	)		(398	)		(1,036	)
Income before income taxes		2,554			1,135			7,242			2,630
Income tax expense		331			—			269			—
Net income	$	2,223		$	1,135		$	6,973		$	2,630
Net income per common share, basic	$	0.38		$	0.19		$	1.18		$	0.45
Net income per common share, diluted	$	0.37		$	0.19		$	1.15		$	0.44
Weighted average shares outstanding:
Basic		5,903			5,875			5,891			5,874
Diluted		6,090			6,006			6,070			5,939

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Condensed Consolidated Balance Sheets

	December 31,		December 31,
ASSETS:	2004		2003
Cash and cash equivalents	$	7,149	$	—
Accounts receivable — net		15,613		13,412
Inventories		16,962		24,042
Prepaid expenses and other assets		2,792		1,415
Total current assets		42,516		38,869
Property and equipment, net		3,557		4,644
Goodwill and other assets		11,715		11,728
Total Assets	$	57,788	$	55,241
LIABILITIES & EQUITY:
Current portion of long-term debt	$	—	$	2,219
Notes payable, bank		—		5,319
Accounts payable and accrued liabilities		7,527		5,578
Total current liabilities		7,527		13,116
Long-term debt, less current maturities		—		—
Other long-term liabilities		5,110		4,249
Total shareholders’ equity		45,151		37,876
Total Liabilities and Equity	$	57,788	$	55,241

	Dec 31,		Sept 25,		Jun 26,		Mar 27,		Dec 31,		Sept 27,		June 28,		Mar 29,
Quarter Ended	2004		2004		2004		2004		2003		2003		2003		2003
Work Sales	$	15,651	$	15,812	$	12,056	$	17,141	$	14,508	$	11,594	$	11,470	$	14,292
Outdoor Sales	$	13,009	$	18,672	$	6,544	$	6,585	$	12,817	$	18,306	$	7,118	$	5,582
Total Sales	$	28,660	$	34,484		18,600	$	23,726		27,325	$	29,900	$	18,588	$	19,874
GSA Delivery Orders	$	2,195	$	2,845	$	451	$	4,267	$	170		—		—		—
PVC Sales	$	326	$	1,584	$	1,463	$	1,735	$	1,689	$	1,590	$	1,743	$	2,136

END

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