Timberland Shoes Struggling

The fickle forces of fashion have hurt bootmaker Timberland, which is facing a $100m shortfall in sales as its chunky footwear loses out in a fashion trend towards slimline shoes and trainers.

Timberland recently revealed a second-quarter loss of $16.6m and said its global revenue was down 1.1% to $224m, with an 8.5% fall in American sales.

The New Hampshire company's trademark heavyweight yellow work boots, once a common element of hip urban uniforms, have fallen out of vogue, losing ground to lightweight, more casual footwear such as Vans and Crocs.

Timberland is scrambling to change its product range. Chief executive Jeffrey Swartz said: "Our product development efforts focused on key consumer segments are enabling us to create more relevant products that better reflect the needs of our key consumer groups."

Timberland's woes are in contrast to the performance of Crocs - the Colorado maker of colourful, comfortable rubbery clogs sported by fans including Jack Nicholson, Terri Hatcher and George Bush. Crocs's shares have quadrupled over 12 months. Last week, it reported a 162% surge in second-quarter sales to $224m, with profits almost tripling from $15.7m to $48.5m.

Timberland was established by a Boston-based apprentice stitcher, Nathan Swartz. His family still holds 70% voting control over the company's shares.

The Swartz clan have shown signs of impatience with Timberland's dismal share price performance. In November, they called in the investment bank Goldman Sachs to advise on strategic options, prompting speculation that the firm could sell up to private equity buyers. Mr Swartz promised improvement yesterday, citing a target of a 15% profit margin.

Special offers abound for Timberlands. Its website is offering pairs with up to a third off. One US retailer, Foot Locker, last year ran a promotion offering a free pair for every pair sold at full price.

At the height of Timberland's success in the mid-1990s, Mr Swartz courted controversy by suggesting that urban fans, including hip-hop and rap artists, were buying the company's work boots for "the wrong reasons" and that he wanted to cater for "honest working people" rather than pandering to fashion.

That figure doesn't show in New York we define Timberland boots over there, I guess it's not as big in other places.

I been noticin that people slowed down wearin timbs. People used 2 b wearin em this time of year, but I havent seen any this year. I dont c as many during other seasons either.

I have seen alot of people starting to wear those Vasque (gores) boots more. jamaicakid852007-08-09 07:09:48

Timbs are always in the toilet around this time. In December the sales will be back up again.

I wouldn't worry too much about the lively hood of Timberland. They are an established brand and a staple of hip hop fashion (just like Air Forces and Kangols). i think they are hittin a financial rut right now because of the extreme changes in Hip Hop/ Urban fashion in just the past 2 yrs (Ex. a nice pair of 7s or True Religions slender legged jeans doesn't look well wit a pair of 6' construction boots).

[quote]Kangols[/quote]
LOL. I hope those never make a comeback.
Willie SKRILLA2007-08-10 06:08:14

Yeah Timberlands ain't going nowhere though they are going to be around for a long time they are a huge staple to hip-hop fashion alot of those females here at work got the black timberland leather steel toes.

and im sure they will have a jump in sales even though it has slowed down now

Over tha East Coast dudes rocin them in tha summer winter whenever...

ha i don't think they going to come back...