NEW YORK ( TheStreet) -- Lacrosse Footwear (Nasdaq: BOOT) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income increased by 45.7% when compared to the same quarter one year prior, rising from $1.15 million to $1.67 million.
  • 42.40% is the gross profit margin for LACROSSE FOOTWEAR INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.70% trails the industry average.
  • LACROSSE FOOTWEAR INC has improved earnings per share by 47.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, LACROSSE FOOTWEAR INC increased its bottom line by earning $1.04 versus $0.86 in the prior year. For the next year, the market is expecting a contraction of 28.8% in earnings ($0.74 versus $1.04).
  • BOOT, with its decline in revenue, slightly underperformed the industry average of 2.8%. Since the same quarter one year prior, revenues slightly dropped by 6.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

LaCrosse Footwear, Inc. engages in the design, development, manufacture, and marketing of footwear for the work and outdoor markets. The company offers its products under the DANNER and LACROSSE brand names. The company has a P/E ratio of 17.3, below the average consumer non-durables industry P/E ratio of 19.7 and below the S&P 500 P/E ratio of 17.7. Lacrosse has a market cap of $82.1 million and is part of the consumer goods sector and consumer non-durables industry. Shares are down 23.4% year to date as of the close of trading on Monday.

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