Blog: Leonie BarrieTimberland sale rumours

Leonie Barrie | 16 November 2006

Timberland might be denying rumours that it’s up for sale, but the market seems to like the news anyway. Shares rose 7.6% following The Wall Street Journal’s report - the most in nine months. The Times, meanwhile, has put a $2bn-plus (£1.05bn) figure on the probable price tag.

The decision to sell follows flagging profits (down by 25% to $51.9m from $69.2m in the third quarter), sales and share price, and is said to be driven by senior members of the Swartz family, who control 70% of Timberland’s voting shares. The company has been criticised for failing to innovate its products, but is also pointing the finger for its woes at EU anti-dumping tariffs on shoes imported from China and Vietnam. In a filing with the US Securities and Exchange Commission last week, it said the duties will cut 2006 operating profits by $6-$7m and 2007 operating profits by $9-10m.

As for potential suitors, well the rumour mill is running wild. Some suggest private equity firms are the front-runners, and others put VF Corp and Nike Inc in the frame.

Timberland considering sale


BLOG

Trump trade probe could have costs for cotton

An International Trade Commission hearing got underway last week as part of the Trump administration's probe into China's intellectual property practices under Section 301 of the 1974 Trade Act. The a...

BLOG

Stop negotiating and bring in the engineers

Surviving in a declining market is the biggest challenge for discount/mass-market retailers and suppliers of commodity products such as basic T-shirts, hoodies or cotton men's shirts – which is why it...

BLOG

The implications of buyer purchasing practices

New research has delved into one relatively underexplored aspect of global supply chains: how buyer purchasing practices impact wages and working conditions....

BLOG

just-style readership survey 2017 – Final reminder

We’re currently carrying out a survey to get a better understanding of the issues that matter the most to our readers, and how we can better serve you in the future. ...

just-style homepage



Forgot your password?