Timberland Co. posted Thursday a 23 percent rise in third-quarter profits that soared past analyst estimates, even as sales were relatively flat.
Shares of the firm spiked as high as 26 percent in Thursday mid-morning trading to $16.85.
The Stratham, N.H.-based firm said net income totaled $37.8 million, or 68 cents a diluted share, up from a profit of $30.7 million, or 52 cents, the prior year. Analysts had expected a profit of 45 cents.
Revenues slipped to $421.8 million from $423.6 million. The company cited declines in casual footwear, offset by strength in boot sales. Global footwear sales rose 2 percent to $319.1 million. Wholesale revenues were flat at $342.2 million.
“I am optimistic about what I am seeing this fall,” Jeffrey Swartz, Timberland president and CEO, said in a company statement. “Our product is better than ever, our marketing is loud and distinct, and our team is focused and energized by the progress we have made against our strategic initiatives. Given the overall economic conditions, we have a lot to feel good about, but realize we still have hard work ahead of us before the Timberland brand and enterprise has reached its full potential.”