Decline in footwear sales leads to losses at Timberland
Outdoor footwear, apparel and accessories company The Timberland Company has reported a second quarter net loss of $13. These results include pre-tax costs of $0.4 million related to the company's establishment of a European finance shared service centre and the final closure of its Puerto Rico manufacturing facility.
Second quarter revenue decreased 5.7% to $226.6 million as gains in international markets and growth in US casual, outdoor, and industrial categories were offset by anticipated declines in US boots and children's sales. Foreign exchange rate changes reduced second quarter revenues by $1.3 million, or 0.6%.
International revenue increased 1.1%, or 2.3% on a constant dollar basis, supported by growth in southern
Second quarter results reflect global gains in apparel and accessories revenue, which offset anticipated declines in footwear revenue. Apparel and accessories revenue increased 20% to $71.5 million supported by growth in Timberland apparel sales globally and the addition of SmartWool. Global footwear revenues fell 15.1% to $150.8 million as strong gains in Timberland PRO series and men's casual footwear partially offset declines in boots and children's.