Timberland reports loss
The Timberland Company reported a net loss of $13 million for the second quarter ending June 30.
The results compare to a net income of $6.3 million reported for second quarter of 2005.
According to Timberland officials, foreign exchange rate changes reduced second quarter revenues by 0.6 percent to $1.3 million. International revenue increased by 1.1 percent (2.3 percent on a constant dollar basis). Declines in boots and kids’ sales lead to a 10 percent decline in U.S. revenues.
Revenue from apparel and accessories increased by 20 percent to $71.5 million. Global footwear revenues declined by 15.1 percent to $150.8 million.
Global wholesale revenue decreased by 7.5 percent to $156.1 million. Timberland experienced a 5.6 percent decline in global comparable store sales.
“As anticipated, we saw pressure on our overall results,” said Jeffrey B. Swartz, president and CEO of Timberland. “We believe the development of our global business portfolio will provide a strong foundation for sustaining our long-term growth and building Timberland’s value as a brand and enterprise.” – TRACIE STONE