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Wolverine with drop in revenue

Apr 26, 2017 United States
Wolverine with drop in revenue
The US-based footwear giant underlined that results were in line with the original outlook, despite the falls registered in their revenue. Store closures registered in 2016 will continue in the new fiscal year
"We are pleased with the strong finish to the year and the incredible progress made on our operational excellence initiatives throughout 2016," stated Mike Stornant, Senior Vice President and Chief Financial Officer, adding: “Over the past year, we worked hard to improve the fundamentals of the business, and this approach served us well not only in delivering the year's results but also in strengthening the company for the future. Looking ahead, we believe we have a clear strategic direction and remain focused on improving profitability to invest in organic growth and to return value to our shareholders."

Adjusted financial results exclude restructuring and impairment costs, organizational transformation costs, and debt extinguishment and other costs. References to underlying revenue indicate reported revenue adjusted for the impact of foreign exchange, retail store closures, and the exit of the Cushe business.

Wolverine reported revenue of 729.6 million US dollars in the fourth quarter of the year, down by 2.9% versus the prior year. Underlying revenue grew by 0.1% compared to similar period in 2015. Reported gross margin in the period totaled 36.6%, compared to 36.2% in the prior year. Adjusted gross margin on a constant currency basis was 37.7%, up 110 basis points versus the previous year. Reported diluted loss per share was 0.02 US dollars, compared to earnings per share of 0.12 US dollars in the prior year. Adjusted diluted earnings per share were 0.33 US dollars, and, on a constant currency basis, were 0.36 US dollars, compared to 0.33 US dollars in similar period in the previous year.

Reported revenue for the full-year reached 2 494.6 million US dollars, down by 7.3% versus the prior year. Underlying revenue declined by 4.9% compared with the previous year. Reported diluted earnings per share totaled 0.89 US dollars, compared to 1.20 US dollars in the prior year. Adjusted diluted earnings per share were 1.36 US dollars, and, on a constant currency basis, were 1.52 US dollars, compared to 1.45 US dollars in the prior year.

Wolverine closed 101 stores during 2016 as part of its omnichannel transformation initiative, which is expected to continue in the new fiscal year. 

Reported revenue for 2017 is expected to be in the range of 2.27 billion to 2.37 billion US dollars, a decline of approximately 9.0% to 5.0%, reflecting the impact from currency fluctuations and store closures.

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