STRATHAM, N.H. -- The Timberland Company (NYSE: TBL) today reported first quarter net income of $29.2 million and diluted earnings per share (EPS) of $0.45, compared with first quarter 2005 net income of $42.2 million and diluted EPS of $0.61. For the purpose of comparison, Timberland Best Nike Rift Shoes Online estimates that its 2005 diluted EPS would have been approximately $0.58 in the first quarter, including costs related to stock options and its employee stock purchase plan. First quarter 2006 results included pre-tax costs of $0.5 million related to the final closure of the Company's Puerto Rico manufacturing facility and its establishment of a European finance shared service center. These restructuring costs had an immaterial impact on EPS.
--First quarter revenue decreased 1.2% from strong prior-year results to $349.8 million as constant dollar growth in international markets and gains in the U.S. were offset by foreign exchange impacts. On a constant dollar basis, first quarter revenue expanded 2.4%. U.S. revenue grew 1.7%, benefiting from Timberland's recent acquisition of SmartWool and from gains in targeted expansion categories such as the Timberland PRO(R) series, outdoor performance and casual which offset anticipated declines in boot sales. International revenue decreased 3.5%, reflecting significant changes in foreign exchange rates over the past year. On a constant dollar basis, International revenue grew 3.0%, supported by gains in Asia and Canada. Foreign exchange rate changes reduced first quarter 2006 revenue by $12.9 million or 3.6%.
--First quarter results reflected global gains in apparel and accessories revenue, which offset a modest decline in footwear revenue. Apparel and accessories revenue increased 8.0% to $91.4 million supported by growth in Timberland(R) apparel sales globally and the addition of the SmartWool(R) brand to the Company's product portfolio. Global footwear revenues fell 4.5% to $253.9 million as strong gains in men's casual and Timberland PRO series footwear offset declines in boots, outdoor performance and kids'.
--Global wholesale revenue expanded 1.4% to $279.6 million. Worldwide consumer direct revenue declined 10.6% to $70.2 million, reflecting a 10.8% decrease in global comparable store sales due to warm weather conditions in the U.S., later Easter timing and lower excess product sales globally in Timberland(R) outlet stores.
--Operating profit for the quarter was $42.3 million, including the above noted restructuring. Operating profit excluding restructuring costs was $42.7 million, 31.0% below the prior-year level. Comparable operating margins decreased 530 basis points to 12.2%, reflecting lower gross margins and higher levels of operating costs driven by investments in new businesses and international expansion. For the quarter, foreign exchange rate changes reduced operating profit by Fake Maurice Lacroix approximately $2.5 million.
--EPS for the quarter decreased 26.2% from the prior-year level as the decrease in operating profit was partially offset by benefits from lower levels of shares outstanding. During the quarter, the Company bought back 1.0 million shares at a total cost of $34.5 million.
--Timberland ended the quarter with $125.3 million in cash and no debt outstanding. The addition of the Company's new SmartWool and Mion businesses contributed to moderate increases in working capital levels. Timberland's accounts receivable increased 2.4% to $192.1 million, with all of the increase associated with its recent acquisition of SmartWool. Its inventory at quarter end was $174.9 mi
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