Timberland SmartWool socks & apparel shines in 2007

07 Feb '08

3 min read

The Timberland Company reported fourth-quarter 2007 net income of $24.1 million and diluted earnings per share (EPS) of $0.40. Fourth quarter diluted EPS was $0.52 when adjusted to exclude restructuring and related costs. These results compare to fourth-quarter 2006 net income of $36.2 million and diluted EPS of $0.58, or $0.61 when adjusted to exclude restructuring and related costs.

Timberland also announced that it has taken several additional actions to streamline its global operations which will result in incremental operating expense savings of $30 million. These actions, when combined with the Company's previously announced decisions to license its U.S. apparel business, close underperforming retail stores and reorganize its U.S. sales and global product organizations, will result in $65 million of annual operating expense savings.

The Company plans to invest incrementally in consumer-facing marketing spend, international expansion and other growth initiatives resulting in a recalibrated operating expense base for 2008 in the range of $550 million.

Fourth-Quarter Results Summary:
Revenue fell 9.3% to $442.7 million as declines in boots and kids' footwear and decreases in Timberland apparel revenue in the U.S. offset strong gains in SmartWool products, Timberland casual and Timberland PRO series footwear.

Foreign exchange rate changes increased fourth-quarter 2007 revenues by approximately $13 million, or 2.6%, due to the strength of the Euro and the British Pound, and increased operating income by approximately $3 million.

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