The Timberland Company (NYSE: TBL) today reported results for the second quarter ended June 29, 2001. For the second quarter of 2001, Timberland earned $10.5 million, or $0.26 per share diluted ($0.27 basic), compared with net income of $9.0 million, or $0.21 per share diluted ($0.22 basic), for the second quarter of 2000. Earnings per share for the second quarter of 2000 included two unusual, non-operating items – a $2.1 million after-tax extraordinary charge associated with the retirement of $100 million in long-term debt, and a $2.1 million pre-tax gain, recorded in other income, related to the settlement of Timberland's Asian business purchase in February of 2000. Comparable second quarter 2000 earnings per share, which adjusts for both items, was $0.23 diluted ($0.24 basic).
Revenue for the second quarter of 2001 totaled $200.9 million,
13.4 percent higher than the $177.1 million reported for the second quarter of 2000.
Domestic revenue for the second quarter of 2001 was $141.6 million, 9.4 percent higher than the $129.4 million reported for the second quarter of 2000. International revenue for the quarter increased 24.4 percent to $59.3 million, compared with $47.7 million for the prior-year period. On a constant dollar basis, international revenue increased 33.7 percent. International revenue comprised 29.5 percent of total second quarter 2001 revenue, compared with 26.9 percent for the second quarter of 2000.
Worldwide footwear revenue for the second quarter of 2001 was $155.0 million, 13.8 percent higher than the $136.2 million reported for the second quarter of 2000. Worldwide apparel and accessories revenue for the quarter increased 11.9 percent to $43.4 million, compared with $38.8 million for the 2000 second quarter.
Worldwide wholesale revenue for the second quarter of 2001 was $142.0 million, 14.4 percent higher than the $124.2 million reported for the second quarter of 2000. Worldwide retail revenue for the quarter increased 11.2 percent to $58.8 million, compared to the $52.9 million reported for the second quarter of 2000. Domestic retail revenue for the 2001 second quarter increased by 3.7 percent to $36.3 million, compared with $35.0 million for the 2000 second quarter. Domestic comparable store sales for the quarter decreased by 5.9 percent.
For the first half of 2001, Timberland earned $28.0 million, or $0.69 per share diluted ($0.71 basic), compared with net income of $23.7 million, or $0.55 per share diluted ($0.58 basic) for the first half of 2000. First half 2000 earnings, excluding the previously described unusual items, were $24.4 million, or $0.57 per share diluted ($0.60 basic). Revenue for the first half of 2001 was $446.3 million, 15.7 percent higher than the $385.7 million reported for the first half of 2000.
Jeffrey B. Swartz, Timberland's President and Chief Executive Officer, stated, "We are pleased to announce Timberland's twentieth consecutive quarter of record revenue and improved earnings. The Company generated double-digit revenue and comparable EPS growth in the second quarter in a difficult retail environment, with strong revenue growth in both footwear and apparel – and across the U.S., Europe, and Asia. These results reflect our continued progress in building a leading global lifestyle brand by expanding our diversified product portfolio, increasing consumer access to Timberland product globally, and investing in the Timberland brand. Maintaining our commitment to this strategy will present some financial challenges in the near-term as we work to preserve the integrity of our brand positioning in a soft and promotional U.S. retail environment, while seeking to offset the impact of other key issues such as foreign exchange declines. As such, we are adjusting our financial objectives for 2001 and 2002 — believing that mid single-digit annual revenue growth and a 15% annual operating profit margin represent more reasonable goals over this time period. Despite these near-term challenges, we are optimistic regarding the long-term potential for the Timberland franchise and remain committed to our long-term financial objectives of double-digit revenue and earnings growth."
Note that comments made by Mr. Swartz are Timberland's performance targets, based on current expectations. These comments are forward-looking, and actual results may differ materially.
As previously announced, Timberland will be hosting a conference call to discuss second quarter results today at 8:25 AM Eastern Time. Interested parties may listen to this call through the investor relations section of the Company's website, www.timberland.com, or by calling (719) 457-2626. Replays of this conference call will be available through the Company's website until 5:00 PM Eastern Time on Thursday, July 26, 2001.
Timberland (NYSE: TBL) is a global leader in the design, engineering and marketing of premium-quality footwear, apparel, and accessories for consumers who value the outdoors and their time in it. Timberland(R) products offer quality workmanship and detailing and are built to withstand the elements of nature. The Company's products can be found in leading department and specialty stores as well as Timberland retail stores throughout North America, Europe, Asia, Latin America, and the Middle East. More information about Timberland is available in the Company's reports filed with the Securities and Exchange Commission.
This press release contains certain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Various factors could cause the results of The Timberland Company to be materially different from any future results expressed or implied by such forward-looking statements. Such factors include, but are not limited to the Company's ability to: (i) manage its foreign exchange rate risks; (ii) successfully market and sell its products in view of changing consumer trends, consumer acceptance of products, and economic and other factors affecting retail market conditions; (iii) obtain adequate raw materials at competitive prices; and (iv) other factors, including those detailed from time to time in The Timberland Company's SEC reports, including its Annual Report on Form 10-K filed on March 28, 2001. The Timberland Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.