Wolverine Worldwide Q1 revenues down but exceed expectations

Wolverine Worldwide first quarter reported revenue stood at 577.6 million dollars for the period ended March 26, 2016. Underlying revenue declined 6.6 percent and reported revenue declined 8.5 percent versus the prior year.

“We exceeded expectations for both revenue and earnings in the first quarter and believe the company is well-positioned to achieve our objectives for the year,” said Blake W. Krueger, Wolverine Worldwide's Chairman, CEO and President, adding, “Our portfolio of leading brands and continued operational excellence served us well during the quarter and will provide us with critical competitive advantages moving forward.”

First quarter results in detail

Adjusted gross margin on a constant currency basis was 41.6 percent, an increase of 20 basis points versus the prior year. Reported gross margin was 39.6 percent, compared to 41.4 percent in the prior year. Adjusted operating margin on a constant currency basis was 9.7 percent, down 20 basis points versus the prior year. Reported operating margin was 5.9 percent, compared to 10.1 percent in the prior year.

Adjusted diluted earnings per share were 0.29 dollar and on a constant currency basis, adjusted diluted earnings per share were 0.34 dollar versus 0.37 dollar in the prior year. Reported diluted earnings per share were 0.18 dollar, compared to 0.39 dollar per share in the prior year.

“The first quarter provided an encouraging start to the year, and we are pleased to have exceeded our expectations for revenue, earnings and inventory management," said Mike Stornant, Senior Vice President and CFO.

Reaffirms outlook for fiscal 2016

The company is reaffirming its revenue and adjusted diluted earnings per share guidance for fiscal 2016 as well as its outlook for inventory. Consolidated reported revenue is expected to be in the range of 2.475 billion dollars to 2.575 billion dollars, representing an underlying revenue decline in the range of approximately 4.3 percent to 0.5 percent. On a reported basis, a revenue decline in the range is anticipated to be of approximately 8 percent to 4.3 percent.

Adjusted diluted earnings per share are expected to be in the range of 1.30 dollars to 1.40 dollars. On a constant currency basis, adjusted earnings per share in the range are expected to be of 1.48 dollars to 1.58 dollars. Reported diluted earnings per share are anticipated in the range of 1.16 dollars to 1.26 dollars.

picture:wolverineworldwide.com