Improved North American wholesale activity in men’s footwear and growth in SmartWool apparel and accessories helped The Timberland Co. (NYSE: TBL) post higher revenue and profit for the fourth quarter 2010.
The company posted quarterly sales of $491.1 million – up 26.7 percent from the same period a year ago. Timberland’s fourth-quarter 2010 net income nearly doubled to $42.1 million, or $0.82 per diluted share, compared to its net income of $22.3 million, or $0.40 per diluted share during the fourth quarter 2009.
Broken down by region, Timberland’s North American fourth-quarter 2010 sales increased 16.8 percent from a year ago to $252 million, European sales rose 32.3 percent to $169.6 million and revenue from Asia increased 58.5 percent to $69.6 million.
For the full year 2010, Timberland reported revenue of nearly $1.43 billion – up 11.2 percent from 2009. Its 2010 net income came in at $96.6 million, or $1.82 per diluted share, from a profit of about $56.6 million, or $1.01 per diluted share in 2009.
Overall, Timberland said higher revenue drove fourth-quarter 2010 profit, slightly offset by higher selling and marketing expenses. The company’s effective tax rate dropped to 33.1 percent in the fourth quarter, compared to a rate of 39.9 percent during the same period a year ago.
“Our results this quarter are the culmination of disciplined focus on our operating model and targeted investments in our brand,” Timberland President and CEO Jeffrey B. Swartz said in a statement. “As our progress in the North America business demonstrates, we have the right strategy and the right team in place to grow Timberland to be the number one outdoor brand on Earth.”
— Compiled by David Clucas
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