Timberland shares soar on surprising 3Q profit

STRATHAM, N.H. (AP) — Timberland Co. said Thursday its third-quarter profit rose an unexpected 23 percent to top analyst estimates as the company trimmed costs and demand improved for its boots and Smartwool apparel.

Shares soared in midday trading following the announcement.

Profit for the three months ended Oct. 2 rose to $37.8 million, or 68 cents per share, from $30.7 million, or 52 cents per share, in the same quarter a year ago. Analysts polled by Thomson Reuters had forecast income of only 45 cents per share.

Revenue edged down 1 percent to $421.7 million from $423.6 million. Analysts predicted revenue of $386.3 million.

In North America, kids' boots and SmartWool sales were popular. Boots were also strong sellers in Europe, offset by casual shoes and apparel.

Operating expense fell 5 percent on lower selling, general and administrative costs.

"Cooler weather, a positive boot cycle, and new product categories likely helped results better than we anticipated, perhaps also pulling some demand from the fourth quarter to the third quarter," said Stifel Nicolaus&Co. analyst Thomas Shaw in a statement. "The largest piece of the Timberland business, causal footwear, remains soft and will likely be the last piece that recovers if the brand can continue to build traction."

Shares rose $3.75, or 28.2 percent, to $17.06 during midday trading. The stock has traded between $7.19 and $18 over the past year.