STRATHAM, N.H.—Apparel and footwear maker Timberland Co. said Thursday its first-quarter profit nearly doubled on a decline in operating expenses and strong European sales growth.
For the three months ended March 28, the company reported income of $18 million, or 30 cents per share, compared with $9.3 million, or 15 cents per share, in the year-ago period.
On an adjusted basis, excluding restructuring and related costs, Timberland reported income of $18.4 million, or 31 cents per share, compared with $13.5 million, or 22 cents per share, in the first quarter of last year.
Analysts polled by Thomson Financial, on average, estimated earnings of 17 cents per share on sales of $316.3 million. Analyst estimates typically exclude one-time, unusual items.
Revenue rose slightly to $340.4 million from $336.3 million, as European sales growth offset a decline in North American sales.
Total European sales grew 7 percent to $164.8 million, while North American sales slipped 5 percent to $137.7 million, on soft consumer spending in both the U.S and Canada. Foreign exchange rate changes increased first-quarter revenue by about $16 million, or 5 percent, due to the strength of the euro and the British pound, the company said.
Total operating expenses decreased 9 percent to $134.4 million from $148 million in the prior-year quarter.
Same-store sales grew 1.9 percent domestically. Global same-store sales rose 5.7 percent in the quarter.
Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.
Shares jumped 81 cents, or 5.6 percent, to $15.41 in premarket trading.
