World Footwear

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Wolverine reports strong quarter earnings

Aug 8, 2019 United States
Wolverine reports strong quarter earnings
The Michigan-based footwear group reported financial results for the second quarter ended on the 29th of June 2019. Wolverine also provided an update on its full-year 2019 outlook
Earnings were strong and exceeded our expectations going into the quarter”, commented Blake Krueger, Wolverine World Wide’s Chairman, Chief Executive Officer and President, adding: "Despite unfavorable Spring weather and overall sluggish US retail conditions, second quarter revenue increased 1.1% on a constant currency basis with our owned eCommerce business growing over 25% and four of our top-five brands meeting or exceeding revenue expectations. Merrell grew mid-single digits and Sperry improved to flattish growth in the quarter. As we look into the second half of the year, we expect to deliver mid-single digit revenue growth driven by strength in Merrell, Sperry and Saucony.”

Second Quarter Review

Reported revenue of 568.6 million US dollars increased by 0.3% as compared to the prior year and adjusting for currency, increased by 1.1%. Reported gross margin of 40.5%, was in line with expectations, and compares to 41.3% in the prior year. Reported operating margin was 9.8%. Adjusted operating margin of 11.1%, was in line with expectations, and compared to 12.5% in the prior year. Reported diluted earnings per share reached 0.45 US dollars, exceeding expectations.

2019 Outlook

Wolverine is confident about a much stronger back half and is expecting approximately 5.5% constant currency revenue growth. This outlook includes approximately 10% constant currency growth in the second half for Merrell, Sperry and Saucony on a combined basis. As a result, the company is updating its full-year guidance. As such, revenue is now expected to be approximately 2.28 billion US dollars, within the range of prior outlook and guidance. Gross margin is now expected to be approximately 41.0%. Reported operating margin is now expected to be approximately 11% and adjusted operating margin is expected to be approximately 12%.

  

About Wolverine

A key player in marketing and licensing branded casual, active lifestyle, work, outdoor sport, athletic, children’s and uniform footwear and apparel. The company’s portfolio includes brands such as: Merrell, Sperry, Hush Puppies, Saucony, Wolverine, Keds, Stride Rite, Chaco, Bates and HYTEST. Wolverine has a footprint in approximately 170 countries and territories.

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