McRae Industries consolidated net revenues $104,316,000
Net earnings for fiscal 2017 totaled $5,083,000 as compared to $4,692,000 for fiscal 2016.
Net earnings per diluted Class A common share were $2.11 for fiscal 2017 as compared to $1.93 for fiscal 2016.
Consolidated net revenues for fiscal 2017 amounted to approximately $104.3 million as compared to $108.8 million for fiscal 2016.
Company's western/lifestyle boot segment, which includes western wear, ladies fashion, and children footwear products under the Dan Post, Laredo, Dingo, El Dorado, and John Deere brand names, experienced a decrease in revenue of 17% from $58.8 million in 2016 to $48.8 million in 2017.
Women's fashion and premium children's boots had the largest sales decrease.
Net revenues for company's work boot segment, which includes Dan Post, Laredo, John Deere, and McRae Industrial work boot products along with company's military boots, increased by 9.5% with sales increasing from $49.7 million in fiscal 2016 to $54.2 million in 2017.
The military boot sales increased by 15.2% from $39.6 million in 2016 to $45.6 million in 2017, while all other work boot brands decreased 12.8% from $10.1 million in fiscal 2016 to $8.6 million in fiscal 2017.
Consolidated gross profit for fiscal 2017 totaled $25.6 million as compared to $26.9 million for fiscal 2016. Gross margin for the western/lifestyle segment decreased from 35% in fiscal 2016 to 34.2% in fiscal 2017.
Gross margins on company's work boot segment increased slightly from 12.3% in fiscal 2016 to 15.8% in fiscal 2017 because of manufacturing efficiencies, a higher volume of production, and better product mix in company's military boots.
Consolidated selling, general and administrative ("SG&A") expenses amounted to $17.8 million as compared to $19.8 million for fiscal 2016.
This was primarily driven by decreased commissions, salaries, advertising, and a company-wide effort to minimize expenditures.
As a result of the above, consolidated operating profit totaled approximately $7.8 million for fiscal 2017 as compared to $7.1 million for fiscal 2016. ■
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