The company plans to invest gradually in consumer contracts before the cost of marketing, international expansion and development initiatives, resulting in operating expenses, the new base for 2008 in the range of $ 550 million.
Sales dropped 9.3 percent to 442.7 million U.S. dollars that the reduction of Timberland boots and shoes for children and lower revenues from clothing to the United States to offset the strong growth of smart wool, Timberland casual Britain and Timberland Pro (R),black short ugg boots, Shoes Series.
Exchange rates rose in the fourth quarter 2007 revenues of approximately 13 million U.S. dollars, or 2 6 percent, reflecting the strong euro and British pound,Pink Ugg, and operating profit increased by approximately 3 million U.S. dollars.
International revenue rose 5 percent to 184.1 million U.S. dollars, but fell 2.2 percent in constant U.S. dollar basis. Timberland work boot sales in the United States declined by 17.3 percent to $ 258.6 million as soft retail conditions added to pressure on shoes and the sale of children.
Timberland has also announced that it has taken additional steps to streamline global operations, which result in additional operating savings of 30 million U.S. dollars.
These measures, when opening the decisions announced on textiles permission of the United States, restructuring of under performing retail stores and close sales in the U.S. and global organizations of the product, combined 65 million dollars in annual saving operation.
The company believes that measures to streamline operational cost structure should offset continued soft market trends. Timberland expects full year 2008 Shoe Timberland tax rate of 40 percent.RMT