Sure, I've heard of Timberland (NYSE:TBL). A fairly popular brand of rugged boots pops to mind. I even knew this company was publicly traded, having recently received a question from a reader about whether it might be considered a socially responsible stock. However, I'd kind of assumed that Timberland was a bit of a yawner, until today.
Why today? I see that Timberland -- the obviously quiet performer that it is -- delivered first-quarter earnings that were up 40.2% to $42.2 million, or $1.22 per share, while revenue increased 10.1% to $354.2 million. (Although we rarely pay too much attention to whether a company "beats" analysts' expectations by a penny or so, it's not often you notice a company that has surpassed expectations by nearly a quarter.)
Meanwhile, Timberland said it ended the quarter with $203.7 million in cash and no debt, and it has been further strengthening quality of earnings by repurchasing shares. But it can't all be good news: The company does expect the second quarter to be flat, and that might give investors reason to pause.
The company blamed promotional spending it will have to dole out, although the slowdown also isn't too surprising, given the company's array of boots. That's a type of footwear that generally just doesn't go over so well during the summer months, although the company does have other kinds of footwear other than the boots it is so well-known for.
Although Timberland's historical performance may not have hit my radar in the past, it doesn't mean that other Foolish investors haven't had their eyes on the stock over recent months. Last fall, Fool contributor Lawrence Meyers wrote a fun piece on Timberland, a company that he deemed slightly overvalued at the time. He took another glance at the retailer last month.
What may be most interesting about this company -- as the Fool's Mike Cianciolo pointed out recently -- is that Timberland shows some signs of being a growth company.
However, given Timberland's own admission that the next quarter will be slower, that leaves investors time to do some research. And who knows, given the stock's surge today, waiting it out might allow investors to get better pricing on shares over the coming months.
Alyce Lomax does not own shares of any companies mentioned.
