World Footwear

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Wolverine Worldwide with flat performance

May 4, 2015 United States
Wolverine Worldwide with flat performance
The outdoor footwear giant has reported revenue of 631.4 million US dollars for the first quarter of 2015, resulting in a small increase (0.6%) from similar period last year
"Our first-quarter results reflect the continued strength of our brand portfolio and a global business model that is built on 15 brands, targeting multiple consumer groups, distribution channels and geographies", commented Blake W. Krueger, Wolverine Worldwide's Chairman, Chief Executive Officer and President, adding: "We believe the strategic investments we are making in our brands - including investments in consumer-demand creation and omnichannel initiatives - position us to capitalize on the many opportunities we have identified to accelerate our growth around the world in 2016 and beyond."

Wolverine’s consolidated revenue increased to 631.4 million US dollars, representing growth of 0.6% versus prior year revenue of 627.6 million US dollars.  Mid single-digit growth from the Heritage Group and low single-digit growth from the Lifestyle Group were partially offset by a low single-digit revenue decline from the Performance Group. On a constant currency basis, revenue grew 3.4%. 

Gross margin was 41.4%, a solid increase of 60 basis points versus the prior year's reported and adjusted gross margin.  The gross margin expansion was driven primarily by price increases and lower close out sales, partially offset by product cost increases.

Adjusted diluted earnings per share decreased 2.6% to 0.37 US dollars, compared to an adjusted 0.38 US dollars per share in the prior year.  On a constant currency basis, adjusted diluted earnings per share increased 2.6% to 0.39 US dollars.  Reported diluted earnings per share were 0.39 US dollars, compared to 0.36 US dollars per share in the prior year.

"The Company delivered earnings in the first quarter that exceeded our expectations", commented Don Grimes, Wolverine's Senior Vice President and Chief Financial Officer, adding:  "Reported financial results were excellent given the negative impact of foreign exchange, incremental pension expense, and accelerated investments in demand creation and omnichannel initiatives.  On a reported basis, low single-digit growth in the US and Latin America, and very strong double-digit growth in Asia Pacific contributed to the revenue gain in the quarter. On a constant currency basis, we were pleased to deliver revenue growth in almost all of our major geographic regions."

Based on first-quarter results and expectations for the balance of the year (which include continued headwinds from a stronger US dollar and the previously announced increase in brand-building investments) Wolverine is reaffirming its full-year revenue and adjusted earnings per share guidance. As such, consolidated reported revenue is expected to be in the range of 2.82 billion US dollars to 2.87 billion US dollars, representing growth in the range of approximately 2% to 4% versus the prior year. Constant currency revenue growth is expected to be in the range of approximately 5% to 7%.  Adjusted diluted earnings per share estimated to be in the range of 1.53 US dollars to 1.60 US dollars. Constant currency adjusted diluted earnings per share is expected in the range of 1.71 US dollars to 1.78 US dollars.

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