On Feb. 8, Timberland (NYSE:TBL) released fourth-quarter earnings for the period ended Dec. 31.

  • Revenue increased only 4.9%, as boot sales and kids' sales declined.
  • Increases in operating expenses hurt margins.
  • The company expects to see massive reduction in boot and kids' sales in 2007, in excess of $100 million globally.
  • Timberland carries a two-star rating in Motley Fool CAPS, our new community intelligence database.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$488.2

$465.3

4.9%

Net Profit

$38.3

$46.9

(18.2%)

EPS

$0.61

$0.71

(14.1%)

Diluted Shares

62.5

65.9

(5.1%)



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

46.4%

48.2%

(1.8)

Operating Margin

11.8%

15.0%

(3.3)

Net Margin

7.9%

10.1%

(2.2)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$181.7

$213.2

(14.8%)

Accounts Rec.

$204.4

$168.8

21.1%

Inventory

$186.8

$167.1

11.7%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$110.0

$97.3

13.1%

Long-Term Debt

$0.0

$0.0

N/A



Learn the ways of the balance sheet.

Cash Flow Highlights

2006

2005

Change

Cash From Ops.

$111.7

$182.3

(38.7%)

Capital Expenditures

$36.6

$26.2

39.8%

Free Cash Flow

$75.1

$156.1

(51.9%)



Find out why Fools always follow the money.

Related Companies:

  • Nike (NYSE:NKE)
  • Wolverine World Wide (NYSE:WWW)
  • Brown Shoe (NYSE:BWS)
  • Skechers USA (NYSE:SKX)
  • K-Swiss (NASDAQ:KSWS)

Related Foolishness:

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