Revenue and Timberland Essay

2805 Words Nov 22nd, 2005 12 Pages
Introduction Timberland has a long time history of providing quality products that are made to be both comfortable and protective. The company can be traced back to a one-man shoe repair shop in 1918 run by Nathan Swartz. His products were very successful and led the beginning of Abington Shoe Company in 1955. Mr. Swartz continued to run the business his son Sidney became involved as well. Together they created the first truly waterproof boot that come to be known as the "timberland boot". As popularity for the boots grew, the name became attached. The company officially changed its name to Timberland Co. in 1978. Sidney Swartz took control of the company two years later with great success. Presently Timberland is run by Sidney's …show more content…
It's an important niche with a total market revenue of $65.4 million in 2004 and is expected to reach $74.2 million in 2011 (7). Products in this category must have several qualities in order to gain customer loyalty. The boots need to not wear out, be of high quality, be protective, and be comfortable. Boots that lack any one of these is likely to be unsuccessful and go out of business. Since most the products have become so similar in this competitive market, companies themselves have to be able to offer aftermarket services to differentiate themselves (7). For example if the boot does break, there should be a way for the customer to replace the boot. Most companies have a guarantee or at least a warrantee for their footwear products. The competitive market also means profits rely heavily on the cost of materials and labor. Companies try to buy low cost supplies that still allow them to make their high quality products.

Company Analysis
Over the past year, Timberland Co. has reached record revenue of $1.5 billion. This is an 11.8% increase from 2003 in which revenue was $1.34 billion. The gross profit for the Timberland Company in 2004 was $765.7 million, greater than 2002 ($540.8 million) and 2003 ($648.1 million) (4).
Annual Income Statement
View: Annual | Quarterly
Dec 04 Dec 03 Dec 02
Revenue 1,500.6 1,342.1 1,190.9
Cost of Goods Sold 734.9 694.0 650.1
Gross Profit 765.7 648.1 540.8

Related Documents