World Footwear

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Fifth consecutive year of record revenue at Wolverine

Mar 19, 2015 United States
Fifth consecutive year of record revenue at Wolverine
Consolidated revenue for fiscal 2014 reached a record 2.76 billion US dollars, up by 2.6% compared to previous year’s revenue of 2.69 billion US dollars
"We had a strong close to the year, with nine of our 16 brands generating double-digit revenue growth in the fourth quarter, and our two largest brands, Merrell and Sperry, delivering mid single-digit and high single-digit revenue growth, respectively," commented Blake W. Krueger, Wolverine Worldwide's Chairman, Chief Executive Officer and President, adding: "I am equally pleased with our full-year performance, which was highlighted by our fifth consecutive year of record revenue, as well as record adjusted earnings.  We believe the strategic investments we are planning for our brands position us to capitalize on the many opportunities we've identified to accelerate our growth around the world."

Fourth Quarter


Consolidated revenue increased to a record 808.9 million US dollars, representing growth of 9.2% versus prior year revenue of 740.8 million US dollars, with each of the company's operating groups contributing to the quarter's revenue growth.  On a constant currency basis, revenue grew 10.1%.

Gross margin was 37.1%, a decrease of 10 basis points versus prior year's reported gross margin and a decrease of 110 basis points versus prior year adjusted gross margin.  A decline mainly driven by a negative mix shift in international markets, the impact of inventory liquidation related to the company's previously announced Strategic Realignment Plan and incremental LIFO expense.

Full Year

Consolidated revenue reached a record 2.76 billion US dollars, representing growth of 2.6% compared to previous year’s revenue of 2.69 billion US dollars.  Foreign exchange had a minimal impact on full-year revenue growth. 

High single-digit growth from the Heritage Group and mid single-digit growth from the Performance Group were partially offset by the expected low single-digit revenue decline from the Lifestyle Group.

Adjusted operating margin increased 90 basis points to 9.9%.  Reported operating margin was 8.3%, an increase of 120 basis points versus the prior year.

"The Company delivered strong financial results in the fourth quarter and fiscal 2014", commented Don Grimes, Senior Vice President and Chief Financial Officer, adding: "In what continues to be a volatile global macroeconomic and retail environment, we delivered full-year revenue growth across almost all geographic regions, which is a testament to the broad acceptance of our brands by consumers around the world.  Double-digit revenue growth in Asia Pacific, high single-digit growth in EMEA and mid single-digit growth in Latin America - important regions for future growth across our portfolio - were partially offset by flat revenue in the US and a low single-digit decline in Canada, with the latter significantly impacted by foreign currency headwinds."

Fiscal 2015 Guidance


For 2015, Wolverine now expects consolidated reported revenue 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, reflecting negative foreign exchange, the impact of retail store closures associated with the company's realignment plan and the exit of the Patagonia Footwear license. Constant currency revenue growth is expected in the range of approximately 5% to 7%.

Adjusted operating margin is forecasted to decline approximately 80 basis points, driven primarily by the incremental brand-building investments and higher pension expense, partially offset by modest gross margin expansion.  Reported operating margin is expected to be approximately flat to the prior year.

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