Note 17 - Segment Information

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

During the three months ended June 30, 2021, we changed our reporting segments to change our Military reporting segment to "Contract Manufacturing" and to change the composition thereof to continue to include Military Contracts and to include sales under manufacturing contracts for private label or other Private Contracts. Previously, only Military Contracts were included in this segment. The Private Contract sales have characteristics more like Military Contracts, with similar sales, delivery processes and gross margins. This segment reporting change reflects a corresponding change in how our CODMs review financial information in order to allocate resources and assess performance. Previously, Private Contracts were included in the Wholesale segment, but with our Acquisition, our Wholesale segment has substantially increased in size and our CODMs determined that the change in segment reporting was appropriate at this time to mirror how they evaluate and manage our business.

There has been no change in our total consolidated financial condition, results of operations, or segment information previously reported, as the result of the change in our reportable segments, as we had no Private Contract sales during the quarterly period ended March 31, 2021 or the fiscal year ended December 31, 2020.

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 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 outlet store. Through our outlet 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,

	Twelve Months Ended
	December 31,
($ in thousands)	2021		2020
NET SALES:
Wholesale	$	391,070	$	185,554
Retail		94,658		72,877
Contract Manufacturing		28,499		18,878
Total Net Sales	$	514,227	$	277,309
GROSS MARGIN:
Wholesale	$	140,166	$	66,336
Retail		47,792		34,283
Contract Manufacturing		6,578		4,116
Total Gross Margin	$	194,536	$	104,735

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)	2021		% of Sales			2020		% of Sales
Work footwear	$	280,235		54.5	%	$	126,268		45.5	%
Western footwear		87,425		17.0			61,127		22.0
Outdoor footwear		76,031		14.8			21,074		7.6
Duty and commercial military footwear		39,715		7.7			41,005		14.8
Military footwear		22,767		4.4			18,878		6.8
Other		5,149		1.0			5,575		2.0
Apparel		2,905		0.6			3,382		1.2
	$	514,227		100.0	%	$	277,309		100.0	%

Net sales to foreign countries represented approximately 6.9% of net sales in 2021 and 0.8% of net sales in 2020. 

The net book value of fixed assets located outside of the U.S. totaled $13.0 million at December 31, 2021, of which approximately $4.6 million resides in the Dominican Republic and approximately $8.4 million resides in China. The net book value of fixed assets located outside of the U.S. totaled $4.5 million at December 31, 2020, all of which resides in the Dominican Republic.