Timberland Co.'s (TBL) second-quarter loss narrowed on
double-digit sales gains across geographic markets, though North
America and global same-store sales were down.
The footwear company will be acquired by VF Corp. (VFC) in a
$2-billion cash deal that is expected to close in the third
quarter. The company has seen revenue grow in recent quarters,
especially overseas, but saw operating expenses on planned
initiatives and product costs rise in the first quarter. Timberland
said it expects higher product costs to continue through 2011, but
it expects a positive impact from price increases in the second
half of the year.
Timberland, which specializes in boots and outdoor apparel,
reported a loss of $20.1 million, or 39 cents a share, compared
with a year-earlier loss of $23.5 million, or 44 cents a share.
Revenue rose 27% to $240.1 million.
Analysts polled by Thomson Reuters forecast a loss of 39 cents a
share on revenue of $209 million.
Gross margin narrowed to 47.4% from 49.5% as operating expenses
rose 14%.
Revenue in North America, which accounts for the bulk of the
total, was up 15% on strong footwear sales. Revenue rose 37% in
Europe and 40% in Asia.
Global footwear revenue increased 28% while apparel and
accessories revenue rose 27%. Global same-store sales were down
0.5%, and North America same-store sales fell 3.9%.
Shares closed at $42.79 and were inactive in premarket trading.
The stock has more than doubled in the past 12 months.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287;
nathalie.tadena@dowjones.com