Out of style, out of profits

Diantha Parker Oct 27, 2006
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Out of style, out of profits

Diantha Parker Oct 27, 2006
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SCOTT JAGOW: A company going in the other direction: Timberland. The boot-maker comes out with its earnings this morning and analysts think profits could be down by 40 percent. Diantha Parker tells us why Timberland’s cool yellow boots aren’t cool anymore.


DIANTHA PARKER: The boot is called the six-inch premium and at one time was a fashion phenomenon, worn by everyone from construction workers to hip-hop celebrities.

But the company’s greatest asset became its Achilles heel as competitors came out with their own versions.

As the market became more saturated, fashion grew tired of boots and rediscovered the sneaker.

Analyst Mitch Kummetz tracks the rugged footwear industry.

MITCH KUMMETZ: “They’ve been a little off trend in the boot category in general and maybe their consumer is more interested in other product these days.”

Timberland is now cutting back on production of the yellow boots to protect the brand and will be more selective about where they’re sold.

Kummetz thinks the move will translate into better earnings for the company, perhaps as soon as this quarter.

Winter’s almost here, he says, and that’s when people buy boots — even if they’re out of style.

I’m Diantha Parker for Marketplace.

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