Timberland SmartWool socks & apparel shines in 2007
07 Feb '08
3 min read
International revenue increased 5.0% to $184.1 million, but decreased 2.2% on a constant dollar basis. U.S. revenues declined 17.3% to $258.6 million, as soft retail conditions added to pressures on boots and kids' sales.
Apparel and accessories revenue grew 2.6% to $133.5 million, driven by double-digit growth of SmartWool socks and apparel. These gains offset declines in Timberland brand apparel, as the Company has experienced soft retail response while it transitions its North American apparel business to a licensing arrangement. Global footwear revenue fell 14.1% to $304.4 million as declines in boots and kids' sales offset gains in casual footwear and the Timberland PRO series.
Global wholesale revenue decreased 14.9% to $289.3 million reflecting declines in boots and kids' sales. Worldwide consumer direct revenue increased 3.4% to $153.4 million, as global door expansion was partially offset by a 6% comparable store sales decline.
Restructuring and related charges of $9.6 million in the fourth quarter included $6.7 million for severance and related costs associated with Timberland's initiative to rationalize its operating expense structure and transition to a more efficient global organization.
The remaining $2.9 million of restructuring and related charges in the fourth quarter relate to lease termination and severance costs from the Company's decision to close certain retail locations.