Timberland reported 2002 year-end and Q4 sales and earnings last week, handily beating analyst’s estimates and sending TBL shares up 11.8% for the week to close at $34.59 on Friday.

The company earned $27.1 million, or $0.73 diluted EPS diluted, compared with net income of $30.2 million, or $0.77 diluted EPS.

Analysts were expecting fourth-quarter earnings of 62 cents a share, according to Thomson First Call.

Fourth quarter revenue increased 4.7% to $357.0 million. Domestic Q4 revenue was up 1.0% to $262.0 million and international revenue increased 16.4% to $95.0 million, up 8.8% on a constant dollar basis.

Worldwide footwear revenue for Q4 was $265.3 million, up 4.1% over Q4 2001. Worldwide Q4 apparel and accessories revenue increased 6.2% to $88.4 million.

For the full year 2002, Timberland earned $95.1 million, or $2.49 diluted EPS, compared with net income of $106.7 million, or $2.65 diluted EPS for 2001. Earnings for 2002 included a $4.9 million after-tax gain related to revised accounting standards.

Analysts were expecting 2002 earnings of $2.26 a share, according to First Call.

EPS for the year benefited from the re-purchase of 838,000 shares in Q4 and 2.8 million shares for 2002.

Revenue for the 2002 full year was $1.19 billion, up 0.6% from the $1.18 billion reported for 2001.

TBL expects low double-digit revenue growth for the first half of 2003 and mid single-digit revenue growth an “appropriate goal for our business” for the back half of the year. The company said it is targeting moderate improvements in operating margins going forward.

KEY Q4 METRICS:

  • Int’l Revenues = 26.6% of total TBL revenues vs. 23.9% of TBL revenues in Q4 2001
  • Total wholesale revenue up 5.8% to $239.7 million
  • Total retail revenue grew 2.5% to $117.3 million
  • U.S. wholesale revenue up 2.6% to $184.0 million
  • U.S. consumer direct revenue for the 2002 Q4 decreased 2.6%
  • U.S. retail comp store sales decreased 5.8%
  • Ended Q4 with $141.2 million in cash and no debt outstanding


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