Timberland loses $20m in Q2

Timberland lost $20.1 million or 39 cents a share its second quarter ending July 1, or less than three weeks before its pending merger was announced, according to its earning report released Thursday.The loss was only $3 million less than the same quarter of 2010, even though the company brought in $240 million in revenue, more than $51 million more (or 27 percent higher) than the second quarter in 2010. But that is partly due to large increases in expenses. The cost of selling went up to $108 million – a $22 million increase – thanks partly to a larger advertising budget, and general administrative expenses rose to $36.3 million, thanks partly to share-based compensation almost doubling to just under $7 million. Administrative expenses also included $1.8 million related to the sale of the company to VF Corp. for $43 a share, a deal which was announced June 12.Timberland’s greatest sales gain was in its smallest segment – Asia – which rose 40 percent. The largest segment, North America, only went up 15 percent. Footwear and apparel gains were roughly even, 28.2 and 26.8 percent respectively. Timberland didn’t attempt to spin this report. There was no guidance as to future performance, and there was not the usual conference call following the earnings release. — BOB SANDERS

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