Timberland’s revenue decreased four per cent in the third quarter. Solid momentum in apparel, outdoor footwear and China was not enough to offset challenging conditions in men’s footwear in the Americas and Europe, particularly in the classics business. Men’s non-classics and women’s performed relatively better as the company’s diversification strategy continues to evolve. For fiscal 2020 Timberland’s sales are expected to decline between one per cent and two per cent. Full-year growth is expected to be impacted by planned business model changes.
Timberland expects growth for the coming year to be challenging. Only 25 per cent of Timberland’s business is B2C with the wide majority of the brand’s business focused on wholesale. With Timberland’s poor holiday sales and resultant high inventories in the marketplace, that means there will be a struggle to grow next year as many of the wholesalers base their next year buys and the order books are set based on the performance they just saw.
VF Corp acquired Timberland in 2011. But sales have mostly declined in recent years. In the fiscal year ended March 2019, Timberland’s revenue was 15 per cent of VF Corp’s total. By category, the fastest growth for Timberland is expected to come in women’s footwear, followed by apparel and other and men’s footwear.