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): August 4, 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 (see General Instruction A.2. below):

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))

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On August 1, 2005, LaCrosse Footwear, Inc. issued a press release entitled “LACROSSE FOOTWEAR REPORTS SECOND QUARTER RESULTS” regarding its consolidated financial results for the second quarter 2005 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 August 1, 2005, entitled “LACROSSE FOOTWEAR REPORTS SECOND QUARTER RESULTS”.

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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: August 4, 2005	By:	/s/ David P. Carlson
		David P. Carlson
		Executive Vice President and Chief Financial Officer

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EXHIBIT INDEX

Exhibit No.	Description
99.1	LaCrosse Footwear, Inc. Press Release dated August 1, 2005, entitled “LACROSSE FOOTWEAR REPORTS SECOND QUARTER RESULTS”.

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EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Contacts:

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

LACROSSE FOOTWEAR REPORTS SECOND QUARTER RESULTS

Successful Introduction of New Products and Continued Penetration into Targeted Markets

Portland, Ore.—August 1, 2005 — LaCrosse Footwear, Inc. (Nasdaq/NMS: BOOT), a leading provider of branded work and outdoor footwear for expert users, today reported results for the second quarter ended June 25, 2005.

For the second quarter of 2005, the Company reported consolidated net sales of $19.8 million, up 6.2% from $18.6 million in the second quarter of 2004. Sales in the second quarter of 2004 included $0.5 million from General Services Administration (GSA) delivery orders for uniform boots (not part of an on-going contract) and $1.5 million from the discontinued PVC boot line (PVC). For the first half of 2005, consolidated net sales were $38.6 million, compared to $42.3 million in the same period of 2004. Sales for the first half of 2004 included $4.7 million from GSA delivery orders and $3.2 million from PVC.

Consolidated net income was $0.4 million or $.07 income per common share in the second quarter of 2005, an increase from a net loss of $0.2 million or $.04 loss per common share in the second quarter of 2004. For the first half of 2005, consolidated net income was $0.7 million, or $.12 income per common share, compared to $0.9 million or $.14 income per common share in the same period of 2004. The results in the second quarter and first half of 2005 include an income tax expense of $0.2 million and $0.4 million, respectively, as compared to zero income tax expense in the same periods of 2004 due to the use of federal net operating loss carryforwards, which were fully utilized during 2004. Results in the first half of 2004 also reflect the dollar volume of gross profit related to the GSA delivery orders and an expense reduction due to a one-time cash payment of $0.9 million from a former vendor.

Sales to the outdoor market were $8.9 million for the second quarter of 2005, up 36% from $6.5 million in the same period of 2004. While outdoor sales are typically stronger in the second half of the year, the year-over-year growth in the second quarter of 2005 reflects stronger penetration into various hunting markets, combined with an additional $1.0 million of sales relating to the early delivery of preseason fall orders. Sales to the work market were $10.8 million for the second quarter of 2005, compared to $12.1 million in the same period of 2004. Work sales in the second quarter of 2004 included revenue from GSA and PVC totaling $2.0 million. In the second quarter of 2005, work sales grew in a number of targeted product categories, including boots for public safety and overall general work.

In the second quarter of 2005, the Company’s gross margin was 35.8% of consolidated net sales, an increase from 32.1% in the same period of 2004. The margin improvement of 370 basis points reflects

increased sales of new higher-margin products as well as our strategic discontinuation of lower margin products, including PVC. The Company’s selling and administrative expenses increased 5.3% from the second quarter of 2004, due primarily to our continued investments in product development.

As a result of its continued profitability, LaCrosse had cash and cash equivalents of $2.0 million and zero outstanding bank debt at the end of second quarter of 2005, significantly improved from funded debt of $3.4 million at the end of second quarter of 2004.

“We are pleased with our sales and earnings growth in our core work and outdoor business in the second quarter, which is typically our slowest quarter,” said Joseph P. Schneider, CEO of LaCrosse Footwear. “During the quarter, we continued to increase our brand equity in both the work and outdoor footwear markets and successfully introduced our fall line of high-performance, innovative and quality footwear. We are very encouraged by our customers’ response to our new products and have increased our inventories to prepare for the second half of 2005.”

“At the same time, we continue to focus on future product development. We are already previewing the Spring line for 2006, which will include a much broader selection of more compelling, high-performance footwear, in both work and outdoor categories, as well as new boot platforms and extensions of our powerful brands into new product categories. As we move into the second half of 2005, we are pleased with the momentum of our fall line and continue to be very excited about the potential of our spring line.”

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 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. 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.

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• 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, duties, and regulations affecting manufacturers and/or importers.

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

• Uncertainties related to new product development and innovation and acceptance in the marketplace of such products.

• Foreign-sourced products and concentrations of currency, political, an intellectual property risks, primarily in China.

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, 2004. The Company has no obligation to update or revise forward-looking statements to reflect the occurrence of future events or circumstances.

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LaCrosse Footwear, Inc.
Condensed Consolidated Statement of Operations
(Amounts in thousands, except per share amounts)
(Unaudited)

	Quarter Ended						First Half Ended
	June 25, 2005			June 26, 2004			June 25, 2005			June 26, 2004
Net sales	$	19,752		$	18,600		$	38,618		$	42,326
Cost of goods sold		12,686			12,630			24,548			29,123
Gross profit		7,066			5,970			14,070			13,203
Operating expenses		6,376			6,057			12,829			12,054
Operating income (loss)		690			(87	)		1,241			1,149
Non-operating expenses, net		(52	)		(150	)		(106	)		(291	)
Income (loss) before income taxes		638			(237	)		1,135			858
Income tax expense		230			—			409			—
Net income (loss)	$	408		$	(237	)	$	726		$	858
Net income (loss) per common share, basic	$	0.07		$	(0.04	)	$	0.12		$	0.15
Net income (loss) per common share, diluted	$	0.07		$	(0.04	)	$	0.12		$	0.14
Weighted average shares outstanding:
Basic		5,941			5,886			5,932			5,882
Diluted		6,145			5,886			6,150			6,065
Supplemental Information
Work Market Sales	$	10,840		$	12,056		$	22,829		$	29,197
Outdoor Market Sales		8,912			6,544			15,789			13,129
	$	19,752		$	18,600		$	38,618		$	42,326
GSA Delivery Order Sales	$	—		$	451		$	—		$	4,719
Discontinued PVC Boot Line Sales	$	—		$	1,462			71		$	3,197

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LaCrosse Footwear, Inc.
Condensed Consolidated Balance Sheet
(Amounts in thousands)

	(Unaudited)				(Unaudited)
	June 25		December 31,		June 26,
ASSETS:	2005		2004		2004
Cash and cash equivalents	$	1,959	$	7,149	$	—
Accounts receivable — net		13,854		15,613		12,358
Inventories		25,168		16,962		21,629
Prepaid expenses and other assets		1,976		2,792		1,616
Total current assets		42,957		42,516		35,603
Property and equipment, net		3,200		3,557		4,350
Goodwill and other assets		12,210		11,715		11,793
Total Assets	$	58,367	$	57,788	$	51,746
LIABILITIES & EQUITY
Notes payable, bank	$	—	$	—	$	3,423
Accounts payable and accrued liabilities		7,776		7,527		5,211
Total current liabilities		7,776		7,527		8,634
Other long-term liabilities		3,421		3,708		3,459
Deferred tax liability		1,116		1,402		865
Total shareholders’ equity		46,054		45,151		38,788
Total Liabilities and Equity	$	58,367	$	57,788	$	51,746

End of Filing

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