Ongoing softness in its U.S. boot and kids’ businessescombined with rising product development costs in Asia will hamper Timberlandprofits through the H1/07. These factors prompted TBL executives to deliver dimprofit forecasts for Q4 and FY07 after reporting a 25% decline in Q3 net incomeon essentially flat sales. Projected flat U.S. sales in Q4, fueled by acontinued cautious view of the urban boot market, will offset double-digitgrowth internationally and likely contribute to an estimated 30% EPS declinefrom a year-ago’s adjusted $2.35 per share.

Additionally, a $3 million impact from EU anti-dumpingmeasures will likely result in a 200 basis point decline in gross ... Log in to view full article.