STRATHAM, NH-Footwear and apparel company Timberland Co. is closing 40 of its large-format specialty stores in the US, Europe and Asia. Management is also closing “several” of its outlet stores, and did not give specific locations of the units it is shutting, though most of them are in the US.
Executives say that the “action is consistent with the company's strategy to transition to smaller, footwear-focused stores in the US and in certain international markets.” The moves will increase annual operating profits by $6 million, while lowering revenue by $40 million, they forecast.
The closures are scheduled to take place in the first few months of next year and leave Timberland will 200 company-owned and 550 franchised locations in a smaller format worldwide. Timberland products are also sold at various large chains such as Dillard's, Foot Locker and Macy's.
During its second quarter, which ended June 29, Timberland's global same-store sales fell 6.2%. The company also posted a net loss of $16.2 million during the period, while total revenue dropped 1.1%, to $224.1 million from the same year-ago period.
Due in part to the recent recall of one if its footwear products, management predicts revenue declines in the low-teen range. Then, after improvement, sales are forecast to come in flat the following quarter.
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