News Flash

Timberland global footwear revenues fall in Q3

05 Nov '07

3 min read

The Timberland Company reported third-quarter net income of $25.9 million and diluted earnings per share (EPS) of $0.42. These results compare to a third-quarter 2006 net income of $55.6 million, and EPS of $0.88.

Third-quarter net income was $30.4 million and EPS was $0.49 when adjusted to exclude restructuring costs principally related to the Company's decision to close certain retail locations.

As part of its ongoing initiative to rationalize its operating expense structure, Timberland also announced plans to transition to a reorganized, more efficient U.S. sales team and a streamlined global product development organization, actions that it believes will result in annual operating expense savings of approximately $10 million.

• Third quarter revenue of $433.3 million was down 13.9% compared to the prior year due to anticipated declines in the boots and kids' businesses as well as declines in the Timberland apparel business. Foreign exchange rate changes increased third-quarter revenues by $12.3 million, or 2.4%.

• International revenue decreased 4.4%, or 9.3% on a constant dollar basis, driven by declines in Europe and Canada, which offset strong growth in Asia. U.S. revenues decreased 23.3%, due to the anticipated declines in boots and kids' sales as well as declines in Timberland apparel, which offset strong growth in SmartWool apparel and accessories.

• Global footwear revenues of $310.3 million were down 15.7%, as anticipated declines in boots and kids' as well as modest declines in casual footwear offset benefits from the addition of IPATH. Apparel and accessories revenue decreased 10.2% to $116.2 million driven by declines in Timberland apparel, which offset strong growth in SmartWool.

More Timberland News... More Fashion News - United States Of America...