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Footwear company Wolverine with 6.3% growth in net income

Oct 20, 2014 United States
Footwear company Wolverine with 6.3% growth in net income
US based company reported revenue down by 0.8% in the third quarter versus the prior year financial results, but in line with the company's previous guidance. Despite that small deterioration, net income was consolidated

"Highlighting the strength of our diverse global business model, strong revenue results across multiple geographies, particularly Asia Pacific and EMEA, offset what continues to be a somewhat tepid retail environment in the US", commented Blake W. Krueger, Wolverine Worldwide's Chairman and Chief Executive Officer.  "We still expect 2014 to be another year of record revenue and record earnings for the Company, driven by the global appeal of our brand portfolio and our disciplined operations."

Consolidated revenue for Wolverine Worldwide, Inc. declined slightly to 711.1 million US dollars from 716.6 million US dollars, as mid-single digit growth from the Heritage Group and low-single digit growth from the Performance Group were offset by a mid-single digit decline in the Lifestyle Group.

As for the revenue distribution by operating group, the lifestyle segment is still the one with a largest contribution to the revenue generation, despite the decline from 41.6% in the third quarter in 2013 to 39.1% in similar period in 2014. The Performance segment represents 36.2% and the Heritage segment 21.3% (20.2%). A residual category of Other represents the reminder 3.4% (3.1%).



For the first three quarters of the current year, revenue for Wolverine Worldwide, Inc. increased 0.1% achieving 1 952.2 million US dollars.  Net income for the first three quarters of the year increased 19.9% from similar period in 2013, reaching 102.3 million US dollars.

Gross margin was 40.0% compared to the prior year's gross margin of 39.9%. 

Despite the deterioration in revenue generated, net income increased by 6.3% from 54.4 million US dollars in the third quarter in 2013 to 57.8 million US dollars in similar period in 2014.

Don Grimes, Wolverine Worldwide's Senior Vice President and Chief Financial Officer, commented, "The company remains focused on driving growth across our portfolio, and we are very pleased to have delivered strong earnings performance – above our expectations going into the quarter – with revenue in line with guidance, gross margin expansion and continued expense discipline."

Based on third-quarter results and expectations for the balance of the year, the company is adjusting its outlook for full-year consolidated revenue to approximately 2.745 billion US dollars, representing growth of approximately 2% compared to the prior year's revenue of 2.69 billion US dollars.  The company is reaffirming its adjusted diluted earnings per share estimate in the range of 1.57 US dollars to 1.63 US dollars – growth of 10% to 14% compared to the prior year's adjusted diluted earnings per share of 1.43 US dollars.  On a reported basis, diluted earnings per share are expected in the range of 1.32 US dollars to 1.38 US dollars.

Wolverine Worldwide, Inc. shares were last trade at 25.4 US dollars on the Nasdaq on the 17th of  October 2014.

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