Footwear, apparel and accessories manufacturer The Timberland Company has reported first quarter net income of $29.2 million compared with $42.2 million in the first quarter of 2005.

First quarter revenue decreased 1.2% from strong prior-year results to $349.8 million as constant dollar growth in international markets and gains in the US were offset by foreign exchange impacts. On a constant dollar basis, first quarter revenues expanded 2.4%. US revenue grew 1.7%, benefiting from Timberland's recent acquisition of SmartWool and from gains in targeted expansion categories such as the Timberland PRO series, outdoor performance and casual which offset anticipated declines in boot sales.

International revenue decreased 3.5%, reflecting significant changes in foreign exchange rates over the past year. On a constant dollar basis, international revenue grew 3%, supported by gains in Asia and Canada. Foreign exchange rate changes reduced first quarter 2006 revenue by $12.9 million, 3.6%.

Global footwear revenues fell 4.5% to $253.9 million as strong gains in men's casual and Timberland PRO series footwear offset declines in boots, outdoor performance and children's footwear.

While the company's first quarter results were largely in line with its expectations, Timberland is modifying its 2006 financial outlook to incorporate the impact of provisional anti-dumping duties on European Union footwear sourced in China and Vietnam. For 2006, the company is now targeting flat to modest revenue growth.

Timberland anticipates second quarter sales declines in the mid single-digit range and an operating loss in the $20-$25 million range. For the second half, it also expects lower comparable earnings.