- Revenue increased 27.1% compared to the prior year period and was up 20.6% on a constant dollar basis, reflecting strong growth across North America, Europe, and Asia.
- North America revenue increased 15.4% to $106.1 million compared to the prior year period, led by growth from Timberland® footwear and Timberland PRO® footwear, as well as SmartWool® accessories. Europe revenue increased 37.4% to $91.7 million, 24.6% on a constant dollar basis, led by significant growth in the wholesale channel, growth in comparable store sales, and new store openings. Asia revenue increased 40.0% to $42.3 million compared to the prior year period, and increased 28.1% on a constant dollar basis, due to double-digit growth in each of the major markets, strong growth in comparable store sales, and retail expansion.
- Global footwear revenue increased 28.2% to $168.7 million from the second quarter of 2010, led by strong growth in men’s footwear in both wholesale and retail channels across all geographic regions. Apparel and accessories revenue increased 26.8% to $66.0 million, reflecting growth across all regions as well, with Europe wholesale accounts and Asia retail stores driving growth in apparel and SmartWool driving growth in accessories.
- Global wholesale revenue was up 28.7% to $151.1 million compared to the prior year period, driven by double-digit growth in North America, Europe, and Asia. Worldwide consumer direct revenue increased 24.5% to $89.0 million compared to the second quarter of 2010, driven by strong comparable store sales growth and the net addition of sixteen new stores compared to the second quarter of 2010.
- Operating loss for the second quarter of 2011 was $30.9 million, compared to an operating loss of $33.3 million in the prior year period. Gross margin declined 210 basis points to 47.4%, with higher product costs more than offsetting favorable foreign exchange impacts. The Company expects higher product costs to continue through 2011; however, the Company expects a positive impact from strategic price increases in the back half of the year. Operating expense for the second quarter of 2011 was $144.7 million, an increase of 14.1% compared to the prior year period.
- In the second quarter of 2011, the effective tax rate was 32.4% compared to 29.0% in the second quarter of 2010.
- The Company ended the quarter with $233.8 million in cash and no debt. Accounts receivable increased 34.4% to $116.7 million compared to the prior year period, driven by revenue growth and the timing of sales. Inventory at quarter end was $251.7 million, an increase of 42.0%, driven by expected growth for the business in 2011, increased product costs, and efforts to secure product in advance of potential factory capacity constraints.
Timberland Reports Second Quarter 2011 Results
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