Revenue during the quarter grew 4.60 percent to $73.22 million from $70 million in the previous year period. Gross margin for the quarter contracted 460 basis points over the previous year period to 27 percent. Total expenses were 98.82 percent of quarterly revenues, up from 95.86 percent for the same period last year. That has resulted in a contraction of 297 basis points in operating margin to 1.18 percent.

Operating income for the quarter was $0.86 million, compared with $2.90 million in the previous year period.

Mike Brooks, chairman and Interim chief executive officer, commented, “We started to see some stabilization in our wholesale business during the third quarter following a difficult 12-month period for the work, western, and hunting boot categories. That said, the retail environment for our core product lines continues to face headwinds including weak store traffic and increased promotional activity. In response to the challenging top-line trends and in an effort to boost profitability, we’ve adjusted our operating structure. These actions led to a reduction in our U.S. work force which will translate into approximately $3.6 million of annualized expense savings. On top of this, the temporary pressure on gross margins from additional investments needed to support the ramp up in military footwear production in our Puerto Rico facility should begin to abate before year-end. This will allow us to deliver the new U.S. military contract we announced last week in a profitable manner. While we are disappointed in our recent performance, we remain confident that our ongoing efforts to reduce our dependence on optimal weather along with the recent rightsizing of our organization and improved manufacturing efficiencies should contribute to more profitable growth and greater shareholder value.”