TIMBERLAND CO

TIMBERLAND CO

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Company Overview
Timberland Co. is an American publicly traded company that designs, develops, manufacture, distributes and markets footwear, outerwear, clothing and accessories for men, women and children. The company was established in 1952 when Nathan Swartz purchased a part of the Abington Shoe Company, and produced shoes. In 1995, Swartz became the sole owner of the Abington Shoe Company. In 1978, it was officially named as Timberland Company. Its headquarters is located in Stratham, New Hampshire.
Timberland’s products include boots for hiking and mountain climbing, shoes, sandals, socks, outerwear hats, jackets, T-shirts, sweatshirts, shirts, belts, packs and travel gear, sunglasses/eyeglasses, wallets, watches and leather goods. The company sells its products to department and athletic stores worldwide under the following brand names: Timberland, Timberland PRO, Miцn, GoLite, howies and iPath.
Timberland aims to equip people to make a difference in the world through creating outstanding products and by trying to make a difference in the communities people live and work. It is committed to produce products that are comfortable enough to wear all day and rugged enough for all year.
Timberland operates approximately 250 company-owned and franchised stores in Asia, Canada, Europe, Latin America, the Middle East, and the United States. It has design facilities in New York, United States and London, United Kingdom, and distribution centers in Ontario, California and Holland, Netherlands.
Business Summary
The Timberland Company (Timberland) designs, develops and markets footwear, apparel and accessories products for men, women and children. The Company offers its products under the Timberland, Timberland PRO, Timberland Boot Company, SmartWool, Howies and IPATH brands. The Company sells its products to retail accounts through its wholesale channel, through Timberland-owned retail, including stores and Internet sales, and through a mix of independent distributors, franchisees and licensees worldwide. The Company has three segments: North America, Europe and Asia. The North America segment comprises the sale of products to wholesale customers in the United States and Canada, as well as the Company-operated specialty, factory outlet and footwear plus stores in the United States and its United States e-commerce businesses. The Europe and Asia segments consist of the marketing, selling and distribution of footwear, apparel and accessories and licensed products outside of North America.
Description and history
The Timberland Company (Timberland), incorporated on December 20, 1978, designs, develops and markets footwear, apparel and accessories products for men, women and children. The Company offers its products under the Timberland, Timberland PRO, Timberland Boot Company, SmartWool, Howies and IPATH brands. The Company sells its products to retail accounts through its wholesale channel, through Timberland-owned retail, including stores and Internet sales, and through a mix of independent distributors, franchisees and licensees worldwide. The Company operates through three segments: North America, Europe and Asia. The North America segment comprises the sale of products to wholesale customers in the United States and Canada, as well as the Company-operated specialty, factory outlet and footwear plus stores in the United States and its United States e-commerce businesses. This segment also includes royalties from licensed products sold worldwide. The Europe and Asia segments consist of the marketing, selling and distribution of footwear, apparel and accessories and licensed products outside of North America. Products are sold outside of the United States through its subsidiaries (which use wholesale and retail channels, including e-commerce in the United Kingdom, to sell footwear, apparel and accessories), independent distributors, franchisees and licensees.

The Company sells its products, along with its distributor partners, in the United States and internationally primarily through independent outdoor retailers, independent footwear retailers, department stores, athletic stores and other national retailers. In addition, it sells its products, along with its distributors and franchise partners in Timberland specialty stores, Timberland factory outlet stores and Timberland footwear plus stores dedicated exclusively to selling Timberland products and Timberland sub-branded products. Timberland also sells its products in the United States online at www.timberland.com, www.smartwool.com and www.ipath.com, and in the United Kingdom online at www.timberlandonline.co.uk and www.howies.co.uk.

Timberland brand footwear offerings within each of its men’s, women’s and kids’ lines fall into three categories: boots, casual and outdoor performance. The Timberland PRO series for skilled tradespeople and working professionals is an additional footwear category it developed to address a consumer group’s distinct needs. IPATH designs, develops and markets skateboarding-inspired casual footwear, apparel and accessories. The Company’s boots categories include Classic Boots, in 6 inches basic, premium and chukka boots, including roll-tops. Its sport boots category includes Field Boot, Euro Hiker and Euro Sprint Hiker. Its boot products feature waterproof leather, direct-attach and seam-sealed waterproof construction, rubber lug outsoles, shock diffusion plates, padded collars, rustproof hardware and moisture-wicking components.

The Company’s Timberland casual footwear series includes rugged handsewn oxfords, boat shoes and casual bucks for commuting at home or the outdoors. Its Timberland Boot Company and Abington collections are premium-priced elite collections within its casual footwear category, which it distributes via few boutique channels. Its Timberland Outdoor Performance footwear addresses the needs of outdoor recreationalists and enthusiasts of all levels. The Timberland PRO series targets working professionals. New product lines include the Renova series, a line of footwear designed for those employed in the healthcare industry. Timberland PRO serves customers in Canada with a line of occupational products built specifically for the Canadian market.

Timberland’s apparel offer for men, women and kids offers outdoor adventure and outdoor leisure products. The Company has licensing arrangements with Phillips-Van Heusen Corporation for men’s apparel in North America and Mediterranea S.r.l. for women’s apparel in Europe and Asia. SmartWool offers apparel and accessories to the active outdoor consumer. SmartWool is a provider of merino wool-based socks, apparel and accessories for men, women and children. SmartWool’s product categories include socks, lifestyle socks and Next-to-Skin Baselayers. SmartWool socks range includes outdoor, run, cycle and ski for the outdoor and snow-sports consumer. SmartWool also offers technical cycling jerseys and shorts, as well as a line of performance and lifestyle sweaters. In addition, SmartWool has a line of performance and lifestyle accessories, including hats, scarves, technical ski gloves and infant socks and booties. SmartWool products are sold through outdoor and ski specialty retailers, outdoor chains, better department stores and online at www.smartwool.com.

howies Limited is an active sports apparel brand. The Company sells howies products through seasonal catalogs, howies-owned retail, including stores and the Internet, and through a mix of independent retailers. Its licensed Timberland products for men, women and children include apparel and accessories. It licenses rights to children’s apparel worldwide, men’s apparel in North America, and women’s apparel in Europe. The accessories products include packs and travel gear, women’s handbags, belts, wallets, socks, headwear, gloves, watches, sunglasses, eyewear and ophthalmic frames and various other small leather goods, and are designed, manufactured and distributed pursuant to licensing agreements with third parties. The Company also offers Timberland PRO footwear and apparel in Europe under a license agreement.

North America

The Company’s wholesale customer accounts within North America include independent outdoor retailers, independent footwear retailers, better-grade department stores, national athletic accounts, general sporting goods retailers and other national accounts. Many of these wholesale accounts merchandise the Company’s products in selling areas dedicated exclusively to its products. Timberland also services its wholesale accounts through its principal showroom in New York City and regional showrooms in Atlanta, Georgia, Dallas, Texas and Miami, Florida. SmartWool products are sold in the United States through sales agents and in Canada through distributors. SmartWool products are also available in Company-owned Timberland specialty stores in the United States, as well as online at www.smartwool.com.

At December 31, 2009, the Company operated six specialty stores, which carry footwear, apparel and accessories; 59 factory outlet stores, which serve as a primary channel for the sale of excess, damaged or discontinued products from its specialty stores and also sell products specifically made for them, and four footwear plus stores, which are smaller, 1,200 to 1,500 square foot, stores that primarily sell its footwear products along with a smaller assortment of its apparel products, in the United States. The Company also sells products online through its Internet store at www.timberland.com. In addition, the Company sells products online through its Internet stores at www.smartwool.com and www.ipath.com.

Europe

Timberland sells its products in Europe through its sales subsidiaries in the United Kingdom, Italy, France, Germany, Switzerland, Austria, Belgium, the Netherlands and Spain. All of these sales subsidiaries provide support for the sale of its products to wholesale customers and/or operate Timberland stores in their respective countries. At December 31, 2009, the Company operated 44 Company-owned specialty stores and shops and 16 factory outlet stores in Europe. Timberland products are also sold in Europe, the Middle East, Africa, Central America and South America by distributors, franchisees and commissioned agents, some of which may also operate Timberland stores located in their respective countries. SmartWool products are sold in Europe, the Middle East and Africa through a combination of agents and distributors, and are also available in Company-owned Timberland stores, as well as online at www.timberlandonline.co.uk. Located in the United Kingdom, howies Limited develops and markets active sports apparel and sells its products through three howies-owned retail stores, catalogs, online at www.howies.co.uk, and through independent retailers.

Asia

The Company sells its products in Asia through its sales subsidiaries in Japan, Hong Kong, Singapore, Taiwan, China and Malaysia. Most of these sales subsidiaries provide support for the sale of its products to wholesale customers and operate Timberland stores in their respective countries. At December 31, 2009, the Company operated 67 Company-owned specialty stores and shops and 19 factory outlet stores in Asia. Timberland products are sold elsewhere in Asia and Australasia by distributors, franchisees and commissioned agents, some of which may also operate Timberland stores located in their respective countries. In 2010, the Company opened its first Company-owned retail store in China. SmartWool products are sold in Asia through distributors and are also available in Company-owned Timberland stores.

Established when Nathan Swartz purchased a part of the Abington Shoe Company, and produced shoes

Business Line
Designs, develops, manufacture, distributes and markets footwear, outerwear, clothing and accessories for men, women and children
Subsidiary
IPATH FOOTWEAR INC
Advisor
DELOITTE & TOUCHE LLP
IPO date
6/1987
US SIC Code
3143
Company Address
200, Domain Drive

City province or state postal code
03885, STRATHAM, NH
Phone: +1 603 772 9500
Fax: +1 603 926 9239
Country address: UNITED STATES OF AMERICA
Website url: www.timberland.com