Leather cost a concern for Timberland
The Timberland Company has posted first quarter net income of $25.7 million compared with $15.9 million during the first quarter of 2009.
Revenue increased 6.9% to $317 million, reflecting growth across North America, Europe and Asia and favourable foreign exchange rate impacts.
Global footwear revenue increased 6.6% to $225.5 million from the first quarter of 2009, driven primarily by improved wholesale results in Asia and Europe, benefits from foreign exchange, and higher comparable store sales globally.
The company was pleased with its results, but has some concerns about prices, including leather prices. President and chief executive officer, Jeffrey Swartz, said: "We have had a solid start to 2010 and we are pleased to see that our product and brand initiatives are gaining traction. Our focus on these strategies is beginning to translate to top-line growth, and while we are encouraged by our revenue growth and earnings improvement, we are cautious about the pressures we are seeing on input costs such as leather and transportation as well as labour costs in China.
“That said, our financial and operational discipline allows us the flexibility to expand targeted growth initiatives. By re-asserting our heritage strength in the outdoor category and finding unique ways to link value and values in products like our Earthkeepers line, we continue to position Timberland for long-term success."
