Q1 revenue for Timberland drops 13 percent
Timberland (NYSE: TBL) said first-quarter revenues decreased 13 percent as strong gains in the men's boots business in both Europe and Asia as well as gains in SmartWool products were offset by declines in Timberland brand apparel and men's casual footwear.
Its revenue for the quarter was $296.6 million versus $340.4 million last year.
The company said the drop reflects declines in Timberland brand apparel, in part due to the transition to a licensing model for the company's North American wholesale apparel business, and declines in Timberland branded casual footwear, partially offset by continued growth in SmartWool brand products. Foreign exchange rate changes decreased first-quarter 2009 revenue by approximately $22 million, or 6.4 percent, due to the strengthening of the U.S. dollar.
North America revenue dropped 13.0 percent to $119.9 million. Europe revenue decreased 15.0 percent to $140.0 million but was down only 1.7 percent on a constant dollar basis. Asia revenue decreased 2.9 percent to $36.8 million, and decreased 6.2 percent on a constant dollar basis.
The company said SmartWool posted double-digit growth for the quarter.
Net income was $15.9 million, or $0.27 earnings per share, compared to $18.0 million, or $0.30 earnings per share, in the same quarter last year.
Global footwear revenue decreased 10.5 percent to $211.6 million. Apparel and accessories revenue decreased 19.7 percent to $78.7 million. Global wholesale revenue decreased 14.4 percent to $218.6 million.
Operating income for the first quarter of 2009 was $18.2 million, compared to $23.2 million in the prior year period. The 2009 first quarter included a $0.9 million non-cash intangible asset impairment charge. In the quarter, foreign exchange rate changes decreased operating income by approximately $1 million due to the strengthening of the U.S. dollar.
Given the volatile nature of current economic conditions, Timberland declined to give guidance for the remainder of the year.
West Marine posts Q1 drop in sales
West Marine (Nasdaq: WMAR) said it narrowed its net loss for the first quarter, but sales dropped reflecting market and industry conditions.
Its loss for the quarter ended April 4 was $14.4 million, or $0.67 per share, compared to a loss of $25.4 million, or $0.81 per share, last year.
"While we've always experienced a loss in the first quarter due to seasonality in our business, this quarter's operating results reflect changes we have made to strengthen the company in the face of current economic conditions," said CEO Geoff Eisenberg in a statement. "We also continue to improve our balance sheet by increasing cash flow, reducing debt and maintaining unused credit facility availability of over $86 million.”
Net revenues were $101.0 million versus $113.3 million in 2008. Comparable store sales declined 6.8 percent versus the same period a year ago.
Gross profit was $22.9 million, an increase of $0.4 million compared to 2008. As a percentage of net revenues, gross profit increased by 2.7 percent to 22.6 percent compared to gross profit of 19.9 percent last year.
SG&A expenses for the quarter were $36.9 million, a decrease of $9.9 million, or 21.2 percent, compared to $46.8 million for the same period last year, and expenses as a percentage of revenues decreased by 4.9 percent to 36.5 percent.
Compared to the corresponding period last year, cash from operating activities improved by $4.9 million, and at the end of the quarter, long-term debt was $75.8 million, which is a decrease of $13.2 million, or 14.8 percent, from this time last year.
Cabela's Q1 profit falls nearly 49 percent
Cabela's (NYSE: CAB) said its first-quarter profit dropped nearly 49 percent, hurt by losses on bad debt in its financial services business.
For the quarter ended March 28, net income fell to $5.1 million, or $0.08 per share, from $10 million, or $0.15 per share, a year ago.
Revenue rose less than 1 percent to $539.5 million from $535.5 million, although sales at stores open at least a year jumped 8.2 percent.
The company said its profit was hurt by $14.7 million of bad debt expense, which lowered securitization income at its World's Foremost Bank subsidiary. Cabela's also said it incurred a $0.02-per-share charge related to severance and fixed asset write-downs.
Cabela's expects to report 2009 earnings per share "roughly equal with 2008 levels," which totaled $1.14 per share.
Crocs' shares rise nearly 42 percent
Shares of Crocs (Nasdaq: CROX) rallied on May 4, rising nearly 42 percent, just days before its first-quarter earnings report will be released. Shares rose $0.96, or 41.95 percent, to close at $3.25. The stock's 52-week range is $0.79 to $12.50.
The company has dealt with crumbling profitability as its sales have dropped and retailer orders have dwindled. It has cut jobs and production plants and hired a new CEO, John Duerden, who began in March.
Wedbush Morgan analyst Jeff Mintz wrote in a client note that he expects the company's earnings results to be above expectations and it will post a loss of $0.21 per share.
The company has said it expects a loss between $0.17 and $0.32 per share.
Mintz said in the note that Duerden, who has previously worked at Reebok and founded brand consulting group Chrysallis Group, brings "important consumer product and footwear expertise to the company."
"We believe that Mr. Duerden's experience in renewing brands should be helpful to Crocs as it tries to remake its core brand, but we note that the company needs more than brand renewal," Mintz wrote, who kept his "hold" rating on the stock.
Big 5's Q1 profit drops 33 percent
Big 5 Sporting Goods (Nasdaq: BGFV) said its first-quarter profit sank 33 percent as consumers continued to pull back on spending.
In the quarter ended March 29, the company earned $2.8 million, or $0.13 per share, compared with $4.1 million, or $0.19 per share, a year earlier.
Net sales dropped to $210.3 million from $212.9 million a year earlier as same-store sales declined 4.4 percent.
The company said that while customer traffic was down in January and February, business started showing signs of improvement in March. For the second quarter, Big 5 said it expects earnings of $0.10 to $0.18 per share, with sales coming in flat to up by low-single digits.
The company's board of directors has declared a quarterly cash dividend of $0.05 per share of outstanding common stock, which will be paid on June 15 to stockholders of record as of June 1.
Big 5 has 381 stores and anticipates opening one new store in the next quarter.
Jarden public offering raises $283 million
Jarden Corp. (NYSE: JAH), parent of Coleman, K2 and Marmot, said its public offering of 8 percent Senior Notes due 2016 has closed. The company's net proceeds were approximately $283 million, which it said it will use to repay a portion of its senior credit facility term loans.
--Compiled by Wendy Geister
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