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

just-style market research sale

Are you planning for the year ahead and beyond? Well this week we’re offering great deals on some of our market research......

BLOG

Gearing up for the holiday shopping season

The volume of US apparel imports saw an increase in October on the prior year as retailers geared up for the holiday shopping season. Bangladesh booked the second highest growth behind India, reversin...

BLOG

Innovations to boost sustainability

Hong Kong-based textile and apparel giant Esquel Group, the world's largest woven shirt maker, is pushing ahead with the pursuit of sustainable and holistic quality. ...

BLOG

Sign up to try new re:source apparel sourcing tool for free

The old saying "Good things come to those who wait" is certainly true for re:source, the new suite of data-driven sourcing tools being developed by the team here at just-style....

just-style homepage



Forgot your password?