Wednesday, apparels, accessories and footwear retailer The Timberland Company (TBL) reported a wider loss for the second quarter on lower revenues across all segments, amid the difficult worldwide retail environment as well as foreign exchange rate changes. Further, the company refrained from setting expectations for the rest of fiscal year 2009 as it foresees continued challenging economic conditions ahead.
For the quarter, Stratham, New Hampshire-based Timberland's net loss widened to $19.24 million or $0.34 per share from a loss of $18.93 million or $0.32 per share in the year-ago quarter.
On an average, six analysts polled by Thomson Reuters expected the company to attain a loss of $0.30 per share. Analysts' estimates typically exclude special items.
The company's revenues for the period plummeted to $179.70 million from $209.92 million in the second quarter of fiscal 2008, reflecting declines in Timberland brand apparel and casual footwear. Analysts expected the company to generate revenues of $190.09 million during the quarter.
Foreign exchange rate changes reduced revenue by nearly $11 million or 5.3%, due to strengthening of the U.S. dollar relative to the British Pound and the Euro.
Domestic Retail comparable store sales decreased 8.2% compared to a decline of 8.0% in the year-ago quarter. Global Retail comparable store sales fell 2.5% compared with a decrease of 1.1%.
On a segmental basis, revenues from North America were $86.31 million as against $99.56 million, revenues from Europe declined to $65.68 million from $78.76 million, and revenues from Asia were $27.71 million compared with $31.60 million last year.
Product wise, revenues from footwear slid to $126.95 million from $142.94 million, and revenues from apparel and accessories were $47.24 million as against $62.64 million, while royalty and other revenues rose to $5.51 million from $4.35 million in the prior-year period.
Wholesale revenues for the quarter were $108.42 million compared to $136.08 million, and revenues from consumer direct decreased to $71.29 million from $73.84 million a year ago.
In association with the company's stock buyback program, Timberland repurchased about 700 thousand shares in the second quarter, at a cost of nearly $10 million. The company ended the quarter with $183.9 million in cash and no debt.
For the six months ended July 3, net loss widened to $3.37 million or $0.06 per share from $0.89 million or $0.02 per share in the corresponding period prior year. Revenues for the year-to-date period were $476.35 million compared to $550.32 million in the same period last year.
Looking ahead, Timberland said that there is insufficient visibility to set expectations for the remainder of 2009 as that the second half is expected to continue to be challenging, due to low levels of consumer confidence and the volatile nature of the current financial health of the global economy.
TBL is currently trading at $13.25 per share, down 10.59%, on the New York Stock Exchange.
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