Timberland Co. earned more than expected in the third quarter and could be quickening its pace toward a turnaround.
For the period ended Oct. 1, the Stratham, N.H.-based firm reported a net income of $52.2 million, or $1 a share, up from $37.8 million, or 68 cents, in the year-ago period.
Revenue increased 3 percent to $432.3 million, reflecting growth across Europe and Asia, but partially offset by a decline in North America.
The consensus of six analysts polled by Yahoo Finance was for earnings per share of 77 cents on revenue of $441 million.
Timberland saw revenue growth from the Asia region, driven by continued expansion in China and Taiwan, as well as from the apparel and accessories segment, thanks to increased sales of Timberland brand apparel in Asia and SmartWool accessories in North America.
Operating income also improved 14 percent to $66.5 million, driven by better gross margins and fewer and more profitable closeout sales.
Global footwear revenue was, however, flat at $319.8 million.
“We see concrete evidence across our portfolio, from strong retail comps and continued wholesale growth to significant improvement in the sales of our outdoor and Earthkeepers collections, supported by our largest-ever marketing campaign, ‘Nature Needs Heroes,’” said Jeffrey Swartz, Timberland’s president and CEO.
Timberland ended the quarter with $108.8 million in cash and no debt.