Global footwear revenues fell 7.8 percent to $368.0 million as gains in casual footwear and Timberland PRO series partially offset declines in boots and kids' sales.
Global wholesale revenue decreased by 1.0 percent to $416.2 million. Worldwide consumer direct revenue increased by 1.3 percent to $86.8 million, reflecting gains in international retail and U.S. e-commerce which offset declines in U.S. outlet store sales.
Operating profit for the quarter was $80.8 million, down 23.1 percent from $105.1 million in the prior year, but was better than anticipated due in part to lower than expected markdowns and closeout sales, reflecting benefits from disciplined inventory management efforts.
Timberland repurchased 929 thousand shares in the third quarter at a total cost of $25.2 million. It ended the quarter with $61.9 million in cash and $54.2 million in short-term debt as a result of seasonal working capital needs, and effectively controlled working capital levels.
Considering these factors, for the full year the Company now expects declines in comparable EPS performance in the 30 percent range.
The Company intends to leverage its strategic actions to drive positive revenue and earnings gains in the second half of 2007, but its preliminary outlook is that first-half profit pressures will likely limit full-year 2007 earnings per share to prior-year levels.
marketing@alchempro.com
