Footwear, apparel and accessories firm The Timberland Company has reported fourth-quarter net income of $38.3 million, significantly lower than the $46.9 million reported in the prior year quarter. For the full year, net income was $106.4 million compared with $164.6 million.

On a more positive note, fourth quarter revenue increased 4.9% as declines in boots and kids’ sales were offset by gains in new brands (including SmartWool), Timberland Pro series, outdoor performance footwear and Timberland apparel and accessories.

International revenue increased by 17.4%, supported by strong growth in Europe, Asia and Canada. US revenues decreased by 1%, due to unseasonably warm weather trends which added to anticipated pressures on boots and children’s sales.

Fourth quarter results reflected global gains in apparel and accessories revenue, which offset modest declines in global footwear sales. Apparel and accessories revenue expanded 26.1% to $130.1 million. Global footwear revenue fell 0.9% to $354.2 million as declines in boots and children’s sales offset gains in Timberland Pro series, outdoor performance and casual footwear.

Meanwhile, the company announced that it has entered into a new five-year licensing agreement with apparel and neckwear company Phillips-Van Heusen  for the design, sourcing and marketing of apparel in North America under the Timberland brand, beginning with the autumn 2008 line. The company will continue to design, source and market apparel for its European and Asian operations through its London-based design centre. Excluded from the agreement with Phillips-Van Heusen are Timberland Outdoor Performance apparel, which Timberland will continue to design, source and market worldwide, as well as Timberland Pro apparel, which licensed by Block Corporation in the US and Canada.