Home / Knowledge / News / Fashion / Declines in Timberland casual footwear & women boots biz
Declines in Timberland casual footwear & women boots biz
06
Feb '09
The Timberland Company reported fourth-quarter 2008 net income of $13.1 million and earnings per share of $0.23. These results compare to fourth-quarter 2007 net income of $24.1 million and earnings per share of $0.40. When adjusted to exclude restructuring and related costs, earnings per share were $0.23 and $0.52 in the fourth quarters of 2008 and 2007, respectively.

Revenue declined 11.8% to $390.6 million for the quarter, reflecting the net closure of 28 retail stores globally, the transition to a licensing model for the Company's North American apparel business and declines in its global Timberland branded footwear and international apparel businesses, partially offset by continued growth in SmartWool and Timberland PRO. Foreign exchange rate changes decreased fourth quarter 2008 revenue by approximately $14 million, or 3.1%, due to the strengthening of the U.S. dollar.

North America revenue declined 13.4% to $230.6 million, reflecting soft consumer spending in the U.S. Europe revenue decreased 13.8% to $109.6 million but was relatively flat on a constant dollar basis. European results reflect declines in the casual footwear and apparel businesses, partially offset by strong sales of men's boots.

Asia revenue increased 2.3% to $50.4 million, but decreased 7.0% on a constant dollar basis, driven primarily by declines in the apparel business. Global footwear revenue decreased 7.6% to $281.2 million due to declines in the casual footwear and women's boots businesses, which offset strength in the men's boots business in the European and Asian markets as well as strength in Timberland PRO series footwear. Apparel and accessories revenue decreased 22.2% to $103.8 million, due in part to anticipated declines in Timberland brand apparel as a result of the Company's transition to a licensing model for its North American apparel business.

Global wholesale revenue decreased 10.9% to $257.3 million. Worldwide consumer direct revenue decreased 13.4% to $133.4 million, reflecting a difficult worldwide retail environment, revenue declines associated with the Company's decision to close certain underperforming retail locations and the impact of foreign currency translation.

The Company had restructuring and related credits of $0.1 million in the fourth quarter of 2008, compared to charges of $9.6 million for the fourth quarter of 2007, reflecting the substantial completion of the Company's 2007 restructuring programs.

Operating income for the fourth quarter of 2008 was $23.1 million, compared to $32.4 million in the prior year period. The 2008 fourth quarter included approximately $2.6 million related to a favorable legal settlement, a $1.9 million non-cash intangible asset impairment charge and severance costs of approximately $2.3 million related to the Company's ongoing initiatives to streamline its operations and rationalize its cost structure.

In the quarter, foreign exchange rate changes decreased operating income by approximately $5 million due to the strengthening of the U.S. dollar. Operating income for the fourth quarter of 2007 included the reversal of approximately $8 million in accruals, primarily related to incentive compensation as its annual performance fell below minimum requirements.


Must ReadView All

Indian textile & apparel exports fall 13% in Jan 2018

Textiles | On 17th Feb 2018

Indian textile & apparel exports fall 13% in Jan 2018

A decline of 13 per cent year-on-year has been observed in the...

Brazilian cotton prices move up in first fortnight

Textiles | On 17th Feb 2018

Brazilian cotton prices move up in first fortnight

Cotton prices rose in Brazil in the first fortnight of February, as...

Courtesy: OrganoClick

Textiles | On 17th Feb 2018

OrganoClick introduces OrganoTex for water repellency

OrganoClick has introduced OrganoTex, a textile impregnation product...

Interviews View All

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Top executives
Textile & apparel bodies

Textile industry would like to see inclusion of cotton yarn under MEIS and ...

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

February 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.3%
No
12.9%
Skip
16.8%

Total Votes: 101

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.4%
No
29.7%
Skip
6.9%

Total Votes: 101

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.1%
No
8.9%
Skip
3.0%

Total Votes: 101

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.2%
No
7.9%
Skip
8.9%

Total Votes: 101


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search