The Timberland Company has reported record first quarter net income of $42.2 million compared with first quarter 2004 net income of $31.1 million. First quarter revenue increased 10.1% to $354.2 million, driven by gains in both US and international markets. US revenues grew 4.0%, reflecting solid growth in footwear and apparel - and gains in both wholesale (+4.9%) and retail channels (+1.4% on a 3.9% comparable store sales gain). International results (+15.3% or +11.0% in constant dollars) were driven by strong constant dollar sales gains in Europe and Asia. Global retail comparable store sales increased 5.4%, reflecting gains in both U.S. and international markets. Overall revenue growth benefited from favorable foreign exchange rate changes - which added $7.4 million (or 2.3%) to first quarter 2005 revenue.

First quarter results were supported by strong global footwear sales. Global footwear revenues expanded 11.1% to $266.0 million, driven by growth in boots, kids', men's casual and Timberland PRO series footwear. Global apparel and accessories revenue grew 6.7% to $84.6 million, reflecting gains in U.S. and international markets.

Jeffrey B. Swartz, Timberland's president and CEO, stated, "Timberland delivered record revenue and profit results in the first quarter, reflecting continued progress in developing the Timberland brand portfolio, through an enhanced focus on consumer segmentation and a stepped-up investment against our unique, integrated approach to brand building. The continued expansion of our global business reflects our strategies to develop our brand against discrete consumer segments with increased precision and improved execution."

 

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