X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.