“Disappointing” year for Timberland
Having achieved less than positive results in 2006 (see www.footwearbiz.com February 8, 2007), American footwear and apparel company The Timberland Company had no better news to report for the fourth quarter and full year 2007 due to further declines, leading to the company’s president describing its performance as “disappointing”.
Fourth quarter net income fell to $24.1 million from $36.2 million in the same period of 2006 while for the full year it declined significantly, falling from $101.2 million in 2006 to $40 million.
Revenue for the fourth quarter decreased 9.3% to $442.7 million due to further declines in its boot and children’s footwear categories as well as at its Timberland apparel, although strong performances were registered at its SmartWool, Timberland casual and Timberland PRO series footwear segments.
Commenting on the results, Jeffrey Swartz, president and chief executive, stated: "2007 was a disappointing year for Timberland, and the results that we delivered to shareholders are below standard and unacceptable for an authentic brand with a deep and unique connection to consumers. However, during the year we made difficult decisions to simplify our business, including licensing our North American apparel business, closing underperforming retail stores globally and streamlining our global operations; actions that should enhance profitability going forward.”
