Third quarter profit The Timberland Company has fallen by 53% on poor sales of its signature boots and namesake apparel lines.

Third-quarter net income tumbled to US$25.9m, from $55.6m in the same period last year, the firm said today (1 November).

The outerwear maker said that net income was $30.4m when adjusted to exclude the cost  of closing some of its retail locations.

As part of its ongoing restructuring, Timberland also revealed plans for a more efficient US sales team and a streamlined global product development organisation, which it believes will result in annual cost savings of around $10m.

Third quarter revenue fell 13.9% to $433.3m due to declines in the boots and kids' businesses as well as the Timberland apparel business.

International revenue decreased 4.4%, or 9.3% on a constant dollar basis, driven by declines in Europe and Canada, which offset strong growth in Asia.

For the full year, the company expects sales to fall in the mid-single digit range compared to prior-year levels, excluding restructuring costs.

The company anticipates soft market trends will be offset by its efforts to drive operational efficiencies across its organisation and its decision to close approximately 50 retail stores by the end of the first quarter of 2008.

Jeffrey B Swartz, Timberland's president and CEO, said: "I am not satisfied with our current financial performance and, together with our leadership team, will continue to review our entire portfolio to identify further opportunities to enhance our effectiveness and deliver improved performance for our shareholders.

"Following last month's announcement to close nearly 50 retail locations globally to improve our profitability, today we announced a realignment of our US sales team and global product development organisation to eliminate redundancies and improve efficiencies.

"We are also driving to strengthen our connection with consumers by raising our marketing voice in conjunction with key partners in Europe and the US.

"I am confident that we are implementing strategic decisions that will reposition the Timberland brand for long-term growth, while preserving our strong brand resonance with targeted consumers who appreciate our outdoor heritage."