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Declines in men's casual footwear & boots at Timberland
30 Jul '08
5 min read
Timberland is maintaining its full-year revenue and operating margin outlook, as favorable foreign exchange benefits are anticipated to offset continued challenges in retail markets globally.
The Company is targeting mid-single digit revenue declines, due in part to its decision to close underperforming retail stores.
It also anticipates flat-to-modest improvement in operating margins excluding restructuring costs, and an effective tax rate in the range of 40%.
The Company is adjusting its operating expense outlook to in the range of $560 million, driven by the impact of foreign currency exchange rates and changes in the assumptions for the closure of a small number of stores that are part of the Company's retail restructuring program.
For the third quarter, Timberland anticipates relatively flat revenue compared to the third quarter of 2007 and operating income excluding restructuring costs in the range of $45 million to $50 million.
The Company also anticipates an additional $1 to $2 million in restructuring costs in the third quarter related to its previously announced retail closure plan, which it now expects will result in total plan costs in the range of $14 million to $15 million, $1 million to $2 million below its previous estimate.
Jeffrey B. Swartz, Timberland's President and Chief Executive Officer, stated, "Our second quarter results were consistent with our expectations, as we continue to control costs in the face of a difficult global retail environment.
The strength of our balance sheet and our disciplined approach to working capital management give us more flexibility in the face of a challenged global economy to make investments that will help us enhance our product offering and strengthen our brand voice.
To that end, we are focused on bringing better product to market quicker and are supporting the improved product offerings through a new marketing campaign aimed at reinvigorating the brand and strengthening its position in the global market. I am confident that the choices we are making will position us for long-term success."
Note that comments made by the Company and Mr. Swartz are Timberland's performance targets, based on current expectations. These comments are forward-looking, and actual results may differ materially.
The Company is targeting mid-single digit revenue declines, due in part to its decision to close underperforming retail stores.
It also anticipates flat-to-modest improvement in operating margins excluding restructuring costs, and an effective tax rate in the range of 40%.
The Company is adjusting its operating expense outlook to in the range of $560 million, driven by the impact of foreign currency exchange rates and changes in the assumptions for the closure of a small number of stores that are part of the Company's retail restructuring program.
For the third quarter, Timberland anticipates relatively flat revenue compared to the third quarter of 2007 and operating income excluding restructuring costs in the range of $45 million to $50 million.
The Company also anticipates an additional $1 to $2 million in restructuring costs in the third quarter related to its previously announced retail closure plan, which it now expects will result in total plan costs in the range of $14 million to $15 million, $1 million to $2 million below its previous estimate.
Jeffrey B. Swartz, Timberland's President and Chief Executive Officer, stated, "Our second quarter results were consistent with our expectations, as we continue to control costs in the face of a difficult global retail environment.
The strength of our balance sheet and our disciplined approach to working capital management give us more flexibility in the face of a challenged global economy to make investments that will help us enhance our product offering and strengthen our brand voice.
To that end, we are focused on bringing better product to market quicker and are supporting the improved product offerings through a new marketing campaign aimed at reinvigorating the brand and strengthening its position in the global market. I am confident that the choices we are making will position us for long-term success."
Note that comments made by the Company and Mr. Swartz are Timberland's performance targets, based on current expectations. These comments are forward-looking, and actual results may differ materially.
Timberland Company
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