Timberland posts wider loss in 2Q

NEW YORK

Footwear maker Timberland Co. posted a wider loss in the second quarter dragged down by a one-time charge, but the company enjoyed revenue growth across all regions.

Timberland, based in Stratham, N.H., lost $23.5 million, or 44 cents per share, in the quarter ended July 2. That compares with a loss of $19.2 million, or 34 cents per share, in the year-ago period.

The 2010 second-quarter results includes a $13.2 million noncash, pretax charge for the impairment of certain goodwill and intangible assets. The company didn't provide per share results that excluded the charge. Timberland couldn't be immediately reached.

Revenue reached $189 million, up from $179 million in the year-ago period.

Analysts surveyed by Thomson Reuters expected 34 cent loss on revenue of $189.5 million for the period.

Jeffrey B. Swartz, Timberland's president and chief executive, said in a statement that revenue growth and gross profit margin improved in all three regions: North America, Asia and Europe.

"We are optimistic about the progress that we are making, despite ongoing cost pressures and macroeconomic uncertainty in key markets," Swartz said.

The North American region enjoyed a 6.6 percent increase in revenue to $92 million compared with the prior year, fueled by growth in clothing and accessories. Revenue in its European business increased 1.4 percent to $66.8 million. Revenue in Asia increased 9.6 percent to $30.2 million compared with the year-ago period.

Global footwear revenue increased 3.7 percent to $131.6 million compared with the second-quarter of 2009, fueled primarily by increased sales of its Timberland PRO footwear in North America and a strong performance by its European wholesale business. Clothing and accessories revenue rose 10.2 percent to $52.1 million compared with the year-ago period. Royalty and other revenue declined 3.8 percent to $5.3 million compared with the year-ago period due to a decline in licensed kids' apparel in North America.

Global wholesale revenue rose 8.3 percent to $117.5 million compared with the prior year, because of double-digit growth in North America and Europe, partially offset by declines in Asia.

Timberland shares rose 1 cent to $18.22 in morning trading.