NEW YORK—Shares of Timberland Co. climbed on Thursday after the footwear maker said first-quarter profit nearly doubled, helped by higher sales in Europe, and an analyst upgraded the stock.
Timberland reported quarterly profit rose 94 percent to $18 million, helped by lower expenses and higher European sales. Revenue rose 1 percent to $340.4 million.
Meanwhile same-store sales, or sales in stores open at least one year, rose 1.9 percent domestically, although total North American sales fell 5 percent due to soft consumer spending.
Timberland has suffered along with other shoemakers from a lack of "must have" footwear trends and a weakening U.S. retail environment.
But Citi Investment Research analyst Kate McShane said first-quarter results might signal the company is nearing the bottom.
"We see limited downside risk from current levels," she wrote. "Though still in the early stages, Timberland reported its first quarterly margin expansion in three years this quarter, as the company reduced off-price wholesale sales in the U.S. and benefited from (the weaker dollar) as well as cost-cutting initiatives."
She raised her rating to "Hold" from "Sell" but said the company's outlook is still challenging.
Even though Timberland expects a continuing benefit from the weaker dollar, "management noted that the retail environment remains difficult and the company continues to see promotional pressure outside the U.S.," she said.
Shares rose $2.62, or 18 percent, to close at $17.22. The stock has traded between $12.83 and $27.76 during the past 52 weeks.
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