US: Timberland widens net loss during second quarter
The Timberland Company has reported a second-quarter net loss of US$19.2m, compared to a second-quarter 2006 net loss of $16.6m.
Second quarter revenue of $224.1m was down 1.1% compared to the prior year as gains in the casual footwear business and in Timberland PRO series were offset by anticipated declines in its boots, apparel and kids' businesses, the company said.
Timberland's international revenue grew 7.5%, or 3.4% on a constant dollar basis, supported by growth in its casual footwear and outdoor businesses, which offset declines in the apparel business. US revenues decreased 8.5%, due to the anticipated declines in boots and kids' sales as well as declines in the apparel business which offset strong growth in Timberland PRO series footwear and gains in SmartWool brand apparel and accessories, it added.
The operating loss for the quarter was $31.5m, compared to a loss of $20.2m, excluding restructuring costs.
The company continues to expect significant sales declines in boots and kids' sales in 2007, likely in the range of $100m globally, which will offset strong gains in other parts of its portfolio, and believes that full year revenue will likely decline by low-single digits compared to the prior year.
For the third quarter, Timberland anticipates revenue declines in the mid to high single digit range compared to the prior year. For the fourth quarter, it is targeting relatively flat revenues and operating margin, due in part to benefits from cost savings actions implemented for the second half of the year.
Jeffrey B Swartz, Timberland's president and CEO, said: "We are focused on continuing to put into action key components of our long-term strategy to build the Timberland brand and enterprise. Our product development efforts focused on key consumer segments are enabling us to create more relevant products that better reflect the needs of our key consumer groups. At the same time, we are working to drive better returns for our shareholders and improve the efficiency of our entire organization to deliver against our long-term objectives for strong revenue growth and a 15% operating margin."
High-end jeans and denim apparel maker Blue Holdings Inc has signed two new licensing agreements for its Antik Denim and Yanuk brands....
Accessories specialist Coach has appointed Andre Cohen as the company's new senior vice president, international wholesale, in an effort to develop its export business....
Retailer JJB Sports is aiming to tap into the aspirational lifestyle end of the UK clothing and footwear market with its acquisition of the Original Shoe Company....
Footwear manufacturer Yue Yuen has proposed a spin-off and separate listing for its Pou Sheng International group on the Hong Kong Stock Exchange....
- Will new Vietnam wage hinder competitiveness?
- Digitisation to drive new apparel-making models
- Under Armour Lighthouse will disrupt production
- Fashion fit for the future – strategies for speed
- How TAL Apparel is staying ahead of the game
- MAS Holdings shares commitment to sustainability
- Gap to shutter all UK Banana Republic stores
- Marks & Spencer top for modern slavery reporting
- M&S "unappealing" clothing a barrier to growth
- Modern Slavery Act boosts supply chain engagement
- Africa-Med strategic sourcing review – comparing East Africa, North Africa and Turkey
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Apparel (GLOBAL) - Industry Report
- Global Sports and Fitness Wear Market 2016-2020