Timberland

1
Timberland

• Maliza Giannetto
• TBL
• November 9, 2004

2
Company Profile

• The Timberland Company designs, develops,
  engineers, markets and distributes footwear,
  apparel and accessories products for men, women
  and children
• 1918, in a Boston, Massachusetts shoe company
  Timberland founder, Nathan Swartz, began his
  bootmaking career as an apprentice stitcher
  
• In 1973, the Timberland name was born
• 26 Specialty stores 54 Factory Outlet stores

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History

• "Timberland" started as the brand name for the
  original waterproof leather boot
  
• Because the boot was so popular, the company name
  was officially changed to The Timberland Company
  
  
• In 1978 and 1979, Timberland added casual and
  boat shoes to its line to become more than just a
  boot company
  
• In the '90s, the Path of Service program began.
  It gives Timberland employees 40 hours of paid
  time-off to serve in their communities

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Products

• Sector Consumer Cyclical
• Industry Footwear
• The Company's products fall into two primary
  groups footwear, and apparel and accessories
  
• Outerwear
• Boots
• Shoes

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Recent News (BUSINESS WIRE)--Sept. 21, 2004

• The Timberland Company Named One of 100 Best
  Companies by Working Mother Magazine
  
• Companies are selected for the list based on
  information about their corporate culture,
  employee population and policies on work/life and
  women's advancement.
• "Providing support to working mothers is
  consistent with Timberland's values," said Bruce
  Johnson, Senior Vice President of Human Resources
  at Timberland. "We recognize and appreciate our
  employees as individuals, and we try to offer
  programs and benefits that meet their needs and
  improve their quality of life - both in and
  outside of the workplace."

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Competitors

• Puma
• Wellco Enterprises Inc
• K-Swiss
• L. L. Bean
• Wolverine Worldwide Inc
• Skechers U.S.A.
• NIKE
• Reebok

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SWOT Analysis

• Strengths
• Stays ahead of current trends innovation
• 2003- delivered record revenue and strong
  earnings growth
  
• Weaknesses
• Over 20 companies in the footwear industry
• Competitors are larger and have greater resources
  than Timberland
  
• Opportunities
• Concept teams dedicated to development of
  breakthrough products
  
• Threats
• Face competition from retailers that establish
  products under private labels
  

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Statistics

• Purchase Price 38.48
• Current Price 64.33
• Initial Cost 1,924.00
• Current Market Value 3216.50
• Money Gained 1292.50
• Shares Owned 50

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Valuation

• Intrinsic value 65.91
• Conservative 12 growth estimate
• Yahoo growth rate 14
• Value Line growth rate 17.5
• 52wk Range48.70 - 67.50
• SP Fair Value 60.70
• SP 12 Mo Target Price 66.00
• Yahoo 12 Mo Target Price 70.00
• Current Price 64.33

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Recommendation