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Timberland announces Q1 2007 sales results
28 Jun '07
4 min read
The Timberland Company reported first-quarter net income of $9.3 million and diluted earnings per share (EPS) of $0.15. First-quarter diluted EPS was $0.22 when adjusted to exclude restructuring costs related to previously announced decisions to license the Company's North America wholesale apparel business and globally restructure its organization around key consumer markets.
These results compare to first-quarter 2006 net income (as restated) of $26.1 million, and diluted EPS of $0.40 or $0.41 when adjusted to exclude restructuring and related costs.
• First-quarter revenue was down 3.9% driven primarily by declines in boots and kids' footwear, which were partially offset by gains in SmartWool and in Timberland PRO.
Foreign exchange rate changes increased first-quarter 2007 revenues by approximately $11.8 million, or 3.3% due to the strength of the Euro and the British Pound, and increased operating income by approximately $7 million.
• International revenue increased 4.1%, but declined 2.1% on a constant dollar basis, driven by weakness in Europe as a result of anticipated declines in boots and kids' sales which were partially offset by strong growth in Asia. U.S. revenues decreased 13.2%, impacted by unseasonable weather trends which added to anticipated pressures on boots and kids' sales.
• First-quarter results reflected declines in global footwear sales which were partially offset by modest global gains in apparel and accessories revenue. Apparel and accessories revenue grew 4.4% to $95.4 million, as gains in SmartWool and the addition of Howies offset declines in Timberland brand apparel. Global footwear revenue fell 7.2% to $235.6 million as declines in boots and kids' sales as well as modest declines in casual footwear and outdoor performance were partially offset by gains in Timberland PRO series footwear.
• Global wholesale revenue decreased 7.3% to $259.0 million reflecting the anticipated declines in boots and kids' footwear sales. Worldwide consumer direct revenue increased 10.0% to $77.3 million, reflecting comparable store sale gains in the U.S. and Asia, along with the benefit of new store openings globally, which offset a comparable store sales decline in Europe.
These results compare to first-quarter 2006 net income (as restated) of $26.1 million, and diluted EPS of $0.40 or $0.41 when adjusted to exclude restructuring and related costs.
• First-quarter revenue was down 3.9% driven primarily by declines in boots and kids' footwear, which were partially offset by gains in SmartWool and in Timberland PRO.
Foreign exchange rate changes increased first-quarter 2007 revenues by approximately $11.8 million, or 3.3% due to the strength of the Euro and the British Pound, and increased operating income by approximately $7 million.
• International revenue increased 4.1%, but declined 2.1% on a constant dollar basis, driven by weakness in Europe as a result of anticipated declines in boots and kids' sales which were partially offset by strong growth in Asia. U.S. revenues decreased 13.2%, impacted by unseasonable weather trends which added to anticipated pressures on boots and kids' sales.
• First-quarter results reflected declines in global footwear sales which were partially offset by modest global gains in apparel and accessories revenue. Apparel and accessories revenue grew 4.4% to $95.4 million, as gains in SmartWool and the addition of Howies offset declines in Timberland brand apparel. Global footwear revenue fell 7.2% to $235.6 million as declines in boots and kids' sales as well as modest declines in casual footwear and outdoor performance were partially offset by gains in Timberland PRO series footwear.
• Global wholesale revenue decreased 7.3% to $259.0 million reflecting the anticipated declines in boots and kids' footwear sales. Worldwide consumer direct revenue increased 10.0% to $77.3 million, reflecting comparable store sale gains in the U.S. and Asia, along with the benefit of new store openings globally, which offset a comparable store sales decline in Europe.
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