The Timberland Company saw a further shift of its business to the International side of the scale in the first quarter as both reported and constant dollar sales outpaced the Domestic gains. The company did get a lift in late season boot sales in the Northeast to help lift sales and profit numbers for the period, but management was less than optimistic as they looked at lower margin sales in Q2 and a weaker back half forecast.

On a constant dollar basis, first quarter net sales rose 7.8% versus the prior-year period, reflecting double-digit gains in the International business and “moderate growth” in the U.S. Some of the International gain was said to be due to an “earlier phasing of customer orders” due in part to an early Easter this year.

Total U.S. revenues grew 4.0% to $155.1 million in Q1, compared to $149.1 million in the year-ago quarter. Retail comp store sales were up 3.9% for the period on top of a 6.1% comp gain in Q1 last year, with comps up in the outlet stores, but down in the specialty stores.

The U.S. wholesale business got a lift from the PRO, men’s casual, kid’s and boots categories in footwear, but apparel also posted a double-digit increase for the period. More than half of TBL apparel sales are done through the department store channel, which was up in double-digits for the quarter. The women’s casual footwear business offset some of the gains seen in the stronger categories, but men’s casual grew in double-digits. The overall U.S. wholesale business got a boost from higher levels of off-price sales as the company moved to shed inventory before quarter-end, a move that also cut into the gains in gross margin for Q1.

International revenues grew 11.0% in constant dollars, driven by strong constant dollar sales gains in Europe and Asia.

Europe revenues increased 17% to $162 million, or a 12% gain in constant dollar terms. Northern Europe countries in the U.K., France, Benelux, and Scandanavia regions saw stronger growth due to double-digit gains in kid’s and boots. The kid’s business was up in double-digits on a constant-dollar basis. Apparel was said to be “up moderately”. Germany remains “challenging”.

Asia revenues were up 11% to $32 million, or a gain of 9% in constant dollar terms. Growth in the outdoor performance, boots, and men’s casual footwear categories, as well as “solid gains” in apparel, contributed to the increase here. Key Southeast Asia markets such as Hong Kong and Taiwan posted double-digit increases for the period.

The growth in global footwear sales was attributed to strength in boots, kid’s, men's casual, and Timberland PRO series footwear. Global apparel and accessories revenue growth was said to reflect gains in both the U.S. and International markets.

On a combined global basis, retail comps increased 5.4% in the quarter and total retail sales increased 5.1% to $78.6 million. Global wholesale revenues jumped 11.6% to $275.6 million.

The company ended the quarter with $204 million in cash and no debt. Inventory was said to be up just 4.5% on a comp basis.

Looking ahead, management said they see some of the Q1 strength pressuring Q2 sales. They also see pressure on U.S. sales from soft retail sell-through in the period last year and lower gross margins due to a product mix shift to more lower-margin wear-now product sold in the quarter. The boot business in the U.S. is expected to decline in both Q2 and Q3 due to soft sell-through. They also see high-single-digit operating expense growth in Q2. The result is expected to be “flat to modest” gains in revenues for the period, with earnings coming in “below the prior-year level” as gross margin falls below last year’s Q2 level.

For the back half, TBL sees a double-digit EPS gain on low- to mid-single-digit revenue growth.

>>> Looks like we may be seeing a shift in the boot business from fashion to practical as the company sees more of that volume moving to Q4 and Q1…

The Timberland Company saw a further shift of its business to the International side of the scale in the first quarter as both reported and constant dollar sales outpaced the domestic gains. The company did get a lift in late season boot sales in the Northeast to help lift sales and profit numbers for the period, but management was less than optimistic as they looked at lower margin sales in Q2 and a weaker back half forecast.

On a constant dollar basis, first quarter net sales rose 7.8% versus the prior-year period, reflecting double-digit gains in the International business and “moderate growth” in the U.S. Some of the International gain was said to be due to an “earlier phasing of customer orders” due in part to an early Easter this year.

Total U.S. revenues grew 4.0% to $155.1 million in Q1, compared to $149.1 million in the year-ago quarter. Retail comp store sales were up 3.9% for the period on top of a 6.1% comp gain in Q1 last year, with comps up in the outlet stores, but down in the specialty stores.

The U.S. wholesale business got a lift from the PRO, men’s casual, kid’s and boots categories in footwear, but apparel also posted a double-digit increase for the period. More than half of TBL apparel sales are done through the department store channel, which was up in double-digits for the quarter. The women’s casual footwear business offset some of the gains seen in the stronger categories, but men’s casual grew in double-digits. The overall U.S. wholesale business got a boost from higher levels of off-price sales as the company moved to shed inventory before quarter-end, a move that also cut into the gains in gross margin for Q1.

International revenues grew 11.0% in constant dollars, driven by strong constant dollar sales gains in Europe and Asia.

Europe revenues increased 17% to $162 million, or a 12% gain in constant dollar terms. Northern Europe countries in the U.K., France, Benelux, and Scandanavia regions saw stronger growth due to double-digit gains in kid’s and boots. The kid’s business was up in double-digits on a constant-dollar basis. Apparel was said to be “up moderately”. Germany remains “challenging”.

Asia revenues were up 11% to $32 million, or a gain of 9% in constant dollar terms. Growth in the outdoor performance, boots, and men’s casual footwear categories, as well as “solid gains” in apparel, contributed to the increase here. Key Southeast Asia markets such as Hong Kong and Taiwan posted double-digit increases for the period.

The growth in global footwear sales was attributed to strength in boots, kid’s, men's casual, and Timberland PRO series footwear. Global apparel and accessories revenue growth was said to reflect gains in both the U.S. and International markets.

On a combined global basis, retail comps increased 5.4% in the quarter and total retail sales increased 5.1% to $78.6 million. Global wholesale revenues jumped 11.6% to $275.6 million.

The company ended the quarter with $204 million in cash and no debt. Inventory was said to be up just 4.5% on a comp basis.

Looking ahead, management said they see some of the Q1 strength pressuring Q2 sales. They also see pressure on U.S. sales from soft retail sell-through in the period last year and lower gross margins due to a product mix shift to more lower-margin wear-now product sold in the quarter. The boot business in the U.S. is expected to decline in both Q2 and Q3 due to soft sell-through. They also see high-single-digit operating expense growth in Q2. The result is expected to be “flat to modest” gains in revenues for the period, with earnings coming in “below the prior-year level” as gross margin falls below last year’s Q2 level.

For the back half, TBL sees a double-digit EPS gain on low- to mid-single-digit revenue growth.

>>> Looks like we may be seeing a shift in the boot business from fashion to practical as the company sees more of that volume moving to Q4 and Q1…