Casual & outdoor businesses drive Timberland's Q2 sales

26 Jul '06

3 min read

The Timberland Company reported a second quarter net loss of $13.0 million and diluted earnings per share (EPS) of ($0.21), compared with second quarter 2005 net income of $6.3 million and diluted EPS of $0.09.

For the purpose of comparison, Timberland estimates that its 2005 diluted EPS would have been approximately $0.07 in the second quarter, including costs related to stock options and its employee stock purchase plan.

Second quarter 2006 results included pre-tax costs of $0.4 million related to the Company's establishment of a European finance shared service center and the final closure of its Puerto Rico manufacturing facility. Excluding these restructuring costs, EPS would have been ($0.20).

Jeffrey B. Swartz, Timberland's President and Chief Executive Officer, stated, "As anticipated, we saw pressure on our overall results, impacted in part by proactive steps taken to maintain Timberland's premium brand positioning. Our strategy remains intensely focused on building a global portfolio of premium brands sharing standout values by providing innovative, authentic solutions for consumers."

"Through efforts focused on leveraging consumer insight and segmentation to elevate and expand our presence in targeted growth categories, we drove continued progress this quarter in developing our casual, outdoor and industrial businesses, and expanding our global reach. We believe the development of our global business portfolio will provide a strong foundation for sustaining our long-term growth and building Timberland's value as a brand and enterprise."

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