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Note 19 - Segment Information
 12 Months Ended
Dec. 31, 2023
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

19. SEGMENT INFORMATION 

 

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 in 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:

 

   

Year Ended

  
   

December 31,

  

($ in thousands)

  

2023

    

2022

    

2021

  

NET SALES:

                        

Wholesale

   $ 337,019     $ 484,779     $ 391,070  

Retail

     116,960       115,354       94,658  

Contract Manufacturing

     7,854       15,342       28,499  

Total Net Sales

   $ 461,833     $ 615,475     $ 514,227  
                         

GROSS MARGIN:

                        

Wholesale

   $ 119,485     $ 165,059     $ 140,166  

Retail

     58,391       57,817       47,792  

Contract Manufacturing

     722       2,343       6,578  

Total Gross Margin

   $ 178,598     $ 225,219     $ 194,536  

 

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)

  

2023

    

% of Sales

    

2022

    

% of Sales

    

2021

    

% of Sales

  

Work footwear

   $ 198,096       42.9 %   $ 256,162       41.6 %   $ 280,235       54.5 %

Outdoor footwear

     130,424       28.2       183,121       29.8       76,031       14.8  

Western

     70,374       15.2       108,697       17.7       87,425       17.0  

Duty and commercial military footwear

     50,482       10.9       46,177       7.5       39,715       7.7  

Military footwear

     7,999       1.7       15,342       2.5       22,767       4.4  

Other

     3,103       0.7       3,581       0.6       5,149       1.0  

Apparel

     1,355       0.3       2,395       0.4       2,905       0.6  
    $ 461,833       100.0 %   $ 615,475       100.0 %   $ 514,227       100.0 %

 

Net sales to foreign countries represented approximately 5.1% of net sales in 2023, 6.2% of net sales in 2022 and 6.9% of net sales in 2021.

 

The net book value of fixed assets located outside of the U.S. totaled  $11.9 million at December 31, 2023, of which approx imately $3.9 million resides in the Dominican Republic and approximatel y $8.0 million resides in China.