LaCrosse Footwear, Inc. third quarter of 2007 net sales were $36.9 million, up 12% from $32.8 million in the third quarter of 2006. Net income was $3.3 million or 52 cents per diluted share in the third quarter of 2007, up 30% from $2.5 million or 41 cents per diluted share in the third quarter of 2006.

Sales to the work market were $15.1 million for the third quarter of 2007, up 20% from $12.5 million for the same period of 2006. Sales to the outdoor market were $21.8 million for the third quarter of 2007, up 7% from $20.3 million for the same period of 2006.

For the first three quarters of 2007, consolidated net sales were $85.5 million, up 12% from $76.1 million in the same period of 2006. For the first three quarters of 2007, net income was $4.9 million or 77 cents per diluted share, up 19% from $4.1 million or 66 cents per diluted share for the same period in 2006.

For the first three quarters of 2007, sales to the work market were $43.7 million, up 13% from the same period in 2006. Year-over-year growth in work market sales reflects continued penetration into a variety of general and specialized work and uniform boot markets.

For the first three quarters of 2007, sales to the outdoor market were $41.8 million, up 12% from the same period in 2006. Year-over-year growth in outdoor market sales primarily reflects increased penetration into the cold weather and rugged outdoor boot markets.

LaCrosse continued to maintain strong gross margins. For the third quarter of 2007, its gross margin was 39.1% of net sales, up from 38.6% in the same period of 2006. For the first three quarters of 2007, gross margins were 39.5% of net sales, up from 39.1% in the same period of 2006.

LaCrosse‘s total operating expenses were $9.5 million or 26% of net sales in the third quarter of 2007, compared to $8.7 million or 27% of net sales in the third quarter of 2006. While operating expenses grew at a slower rate than net sales, the year-over-year absolute dollar increase primarily reflects increased investment in sales and product development.

At the end of the third quarter of 2007, LaCrosse had cash and cash equivalents of $4.7 million, up 87% from $2.5 million at the end of the third quarter of 2006. LaCrosse’s inventory at the end of the third quarter of 2007 increased 8% from the end of the same period in 2006, a substantially lower increase than its sales growth, and reflects improved inventory management.

“We are pleased with our execution and financial performance for the third quarter, despite the unseasonably warm weather conditions in the eastern US, which certainly impacted our outdoor boot sales throughout much of the quarter,” said Joseph P. Schneider, president and CEO of LaCrosse Footwear, Inc. “Our strong overall sales growth continued to be driven by the success of our new fall product lines. At the same time, we maintained our strong gross margins, leveraged our operating expenses as a percent of sales, managed our inventory better and increased our profitability.”

“Our continued investment in developing premium products, infused with innovative technology and backed by outstanding customer service, is paying off and creating new opportunities for sustainable and profitable growth. One of our key strategic goals is to become less dependent on seasonality and changing weather conditions. As we progress toward this long-term objective, we are encouraged by the very positive customer response to our extensive new spring lines of Danner and LaCrosse products, with exciting new boots for every climate, every season and every part of the day, on the job or in the field.”