The Timberland Company reported third-quarter net income of $51.9 million and diluted earnings per share (EPS) of $0.82, compared with third-quarter 2005 net income of $69.2 million and diluted EPS of $1.02, or $1.01 when adjusted to exclude restructuring and related costs and include stock option and employee stock purchase plan expenses.
Third-quarter revenues were down slightly as gains in new brands (including SmartWool), Timberland apparel, casual footwear, and Timberland PRO series were offset by anticipated declines in boots and kids' sales.
Foreign exchange rate changes increased third-quarter revenues by approximately $7.9 million, or 1.5 percent due to the strength of the Euro and the British Pound, but had limited impact on its profitability as a result of the Company's hedging program.
International revenue increased 6.9 percent, or 3.6 percent on a constant dollar basis, supported by growth in southern Europe, distributor markets, Canada, and Japan.
U.S. revenues decreased 7.2 percent, due primarily to lower boots and kids' sales, which offset benefits from the addition of the SmartWool brand to the Company's product portfolio and strong growth in key expansion categories such as Timberland PRO series footwear and Timberland apparel.
Third-quarter results reflected global gains in apparel and accessories revenue, which partially offset anticipated declines in footwear revenue.
Apparel and accessories revenue increased 27.5 percent to $129.4 million supported by the addition of the SmartWool brand and growth in Timberland apparel sales globally.
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