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Note 19 - Segment Information
 12 Months Ended
Dec. 31, 2024
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., 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.

 

Our Chief Operating Decision Maker ("CODM") is our Chief Executive Officer (CEO), who evaluates operating results and performance based on net sales and gross margin. Our CODM also uses results of net sales and gross margin to evaluate segment performance and allocate resources as the primary metrics for overall segment evaluation. Operating expenses such as warehousing, distribution, marketing and other key activities supporting our operations are integrated to maximize efficiency and productivity; therefore, we do not include these expenses within our segment results, but instead review them at the consolidated level.

 

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)

 

2024

  

2023

  

2022

 

NET SALES:

            

Wholesale

 $313,340  $337,019  $484,779 

Retail

  126,868   116,960   115,354 

Contract Manufacturing

  13,564   7,854   15,342 

Total Net Sales

 $453,772  $461,833  $615,475 
             

COST OF GOODS SOLD:

            

Wholesale

 $196,095  $217,534  $319,720 

Retail

  66,715   58,569   57,537 

Contract Manufacturing

  11,952   7,132   12,999 

Total Cost of Goods Sold

 $274,762  $283,235  $390,256 
             

GROSS MARGIN:

            

Wholesale

 $117,245  $119,485  $165,059 

Retail

  60,153   58,391   57,817 

Contract Manufacturing

  1,612   722   2,343 

Total Gross Margin

 $179,010  $178,598  $225,219 

 

Segment asset information is not prepared or used to assess segment performance.

 

Product Line Information - The following is supplemental information on net sales by product line for the years ended December 31:

 

($ in thousands)

 

2024

  

% of Sales

  

2023

  

% of Sales

  

2022

  

% of Sales

 

Work footwear

 $190,349   41.9% $198,096   42.9% $256,162   41.6%

Outdoor footwear

  130,222   28.7   130,424   28.2   183,121   29.8 

Western

  82,639   18.2   70,374   15.2   108,697   17.7 

Duty and commercial military footwear

  34,547   7.6   50,482   10.9   46,177   7.5 

Military footwear

  11,275   2.5   7,999   1.7   15,342   2.5 

Other

  4,740   1.0   4,458   1.0   5,976   1.0 
  $453,772   100.0% $461,833   100.0% $615,475   100.0%

 

Net sales to foreign countries represented approximately 3.2% of net sales in 2024, 5.1% of net sales in 2023 and 6.2% of net sales in 2022. 

 

The net book value of fixed assets located outside of the U.S. totaled  $11.2 million at December 31, 2024 , of which approx imately $3.7 mill ion resides in the Dominican Republic and approximatel y $7.5 mil lion resides in China.