Timberland 1Q profit surges as overseas sales rise
STRATHAM, N.H. - Timberland Co. said today that its first-quarter profit jumped 62 percent, as overseas sales improved on a softer dollar and US customers spent a bit more.
Timberland, whose brands include SmartWool, IPath and its namesake, earned $25.7 million, or 47 cents per share, for the period ended April 2. That compares with a profit of $15.9 million, or 27 cents per share, a year ago.
Analysts surveyed by Thomson Reuters, whose estimates typically exclude one-time items, expected a much smaller profit of 28 cents per share. Retailers have struggled during the recession as shoppers tried to save money. With signs emerging that economic conditions are starting to improve, consumers are beginning to loosen their pursestrings and spend more.
Revenue increased 7 percent to $317 million from $296.6 million. The results were boosted 3.7 percent by international shoppers taking advantage of the weaker dollar. Wall Street expected total revenue of $312.5 million. European revenue rose 8.7 percent, while revenue for Asia climbed 16.9 percent. North American revenue edged up 1.7 percent on better sales of clothing and accessories. Global footwear revenue rose 6.6 percent, with wholesale revenue up 6.1 percent.
Timberland's stock gained 34 cents to $22.79 in midday trading. The shares hit a new 52-week high of $23.95 earlier in the session.
The photo with this post was taken from Timberland's website.