The Timberland Company reported a second-quarter net loss of $19.2 million and a loss per share (EPS) of ($0.31). These results compare to a second-quarter 2006 net loss of $16.6 million, and EPS of ($0.26).
Second-quarter net loss was $18.6 million and EPS was ($0.30) when adjusted to exclude restructuring costs principally related to globally restructuring its organization around key consumer groups.
• Second quarter revenue of $224.1 million was down 1.1% compared to the prior year as gains in the casual footwear business and in Timberland PRO series were offset by anticipated declines in the boots and kids' businesses as well as declines in the apparel business. Foreign exchange rate changes increased second quarter revenues by $4.3 million, or 1.9%.
• International revenue grew 7.5%, or 3.4% on a constant dollar basis, supported by growth in the casual footwear and outdoor businesses which offset declines in the apparel business. U.S. revenues decreased 8.5%, due to the anticipated declines in boots and kids' sales as well as declines in the apparel business which offset strong growth in Timberland PRO series footwear and gains in SmartWool brand apparel and accessories.
• Second-quarter results reflected global gains in the casual footwear, SmartWool and Timberland PRO series businesses. Global footwear revenues of $154.5 million were up 2.5% compared to the prior year period as strong gains in casual footwear and in Timberland PROseries offset anticipated declines in boots and kids', which were impacted in part by proactive steps to maintain a premium brand positioning through the Company's strategy to restrict sales of the iconic boot product. Apparel and accessories revenue decreased 7.0% to $66.5 million driven by declines in Timberland apparel, which were partially offset by strong growth in SmartWool.
• Global wholesale revenue decreased by 3.3% to $150.9 million. Worldwide consumer direct revenue increased 3.8% to $73.2 million reflecting strong sales in Asia and gains in foreign currency. Overall, global comparable store sales declined 6.2% reflecting decreases in the U.S., Europe and Asia.
marketing@alchempro.com
