Third-quarter net income was $30.4 million and EPS was $0.49 when adjusted to exclude restructuring costs principally related to the Company's decision to close certain retail locations.
As part of its ongoing initiative to rationalize its operating expense structure, Timberland also announced plans to transition to a reorganized, more efficient U.S. sales team and a streamlined global product development organization, actions that it believes will result in annual operating expense savings of approximately $10 million.
• Third quarter revenue of $433.3 million was down 13.9% compared to the prior year due to anticipated declines in the boots and kids' businesses as well as declines in the Timberland apparel business. Foreign exchange rate changes increased third-quarter revenues by $12.3 million, or 2.4%.
• International revenue decreased 4.4%, or 9.3% on a constant dollar basis, driven by declines in Europe and Canada, which offset strong growth in Asia. U.S. revenues decreased 23.3%, due to the anticipated declines in boots and kids' sales as well as declines in Timberland apparel, which offset strong growth in SmartWool apparel and accessories.
• Global footwear revenues of $310.3 million were down 15.7%, as anticipated declines in boots and kids' as well as modest declines in casual footwear offset benefits from the addition of IPATH. Apparel and accessories revenue decreased 10.2% to $116.2 million driven by declines in Timberland apparel, which offset strong growth in SmartWool.
| • Global wholesale revenue decreased by 17.3% to $344.0 million. Worldwide consumer direct revenue increased 2.9% to $89.3 million reflecting strong sales in Asia as a result of the addition of new doors as well as gains in foreign currency. Overall, global comparable store sales declined 5.6% reflecting decreases in the U.S., Europe and Asia. • Operating income for the quarter was $44.7 million, compared to $84.7 million in the prior year period driven by revenue declines and gross margin pressures due to unfavorable mix impacts from lower boot sales in the U.S. and Europe, increased levels of off-price sales and markdowns, and higher product costs. Operating income excluding restructuring costs related to the decision to close certain retail locations was $52.2 million. For the quarter, foreign exchange rate changes increased operating income by $7.4 million. Click here to view more: | ||||
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