Global wholesale revenue expanded 1.3 percent to $313.4 million. Worldwide consumer direct revenue increased 4.5 percent to $151.9 million, reflecting a 1.7 percent increase in global comparable store sales.
For 2006, the company is targeting mid single-digit revenue growth and moderate declines in comparable EPS to 2005. For the purpose of comparison, Timberland estimates that its 2005 EPS would have been approximately $2.35, after excluding restructuring costs and including costs related to stock options and its employee stock purchase plan. Restructuring costs related to the company's Caribbean manufacturing operations were $4.3 million in 2005 and are estimated to be approximately $0.3 million in Q1 2006.
Timberland's financial outlook reflects anticipated pressure on gross margins in 2006, driven by product mix changes and macro factors such as higher oil-related product costs. It is also planning for high single-digit growth in operating expenses, driven by investments to advance Timberland's global development and organization capability and by incremental equity based compensation costs, reflecting new accounting requirements.
Jeffrey Swartz, Timberland's President and CEO stated, "Timberland delivered solid revenue growth and record profits in the fourth quarter, resulting in record full year revenue and earnings results. Our strong financial performance in 2005 reflects benefits from our continued global expansion of the Timberland brand, supported by development of our integrated brand presence and our commitment to driving superior customer service through operational excellence."
20240830145952.gif)
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
