Higher apparel sales fail to offset declines at Timberland
The Timberland Company has reported fourth quarter net income of $24.1 million compared with $36.2 million in the prior-year fourth quarter.
Revenue fell 9.3% to $442.7 million as declines in boots and kids' footwear and decreases in Timberland apparel revenue in the US offset strong gains in SmartWool products, Timberland casual and Timberland PRO series footwear. International revenue increased 5% to $184.1 million, while US revenues fell 17.3% to $258.6 million.
Apparel and accessories revenue grew 2.6% to $133.5 million, driven by double-digit growth of SmartWool socks and apparel. These gains offset declines in Timberland brand apparel, as the company has experienced soft retail response while it transitions its North American apparel business to a licensing arrangement. Global footwear revenue fell 14.1% to $304.4 million.
The company has also decided to streamline its global operations which should result in expense savings of $30 million. Combined with its previously announced decisions to license its US apparel business, close underperforming retail stores and reorganise its US sales and global product organisations, its actions will result in $65 million of annual operating expense savings.
