Wolverine World Wide revenues creep up; earnings continue to slip
Rockford, Michigan-based footwear company Wolverine World Wide, Inc. announced a slight increase in its third-quarter revenues on Thursday, but continued to see declines in its bottom line.
For the third quarter ended September 28, 2019 the company reported revenue of $574.3 million, up 2.8% (3.6% in constant currencies) from $558.6 million in the prior-year period.
Wolverine’s Merrell, Sperry and Saucony brands were particularly strong performers during the quarter, collectively posting constant-currency growth of 11%.
Quarterly earnings at the company, whose brand portfolio also includes Wolverine, Hush Puppies and Stride Rite, totaled $48.7 million, or $0.57 per diluted share, falling from $58.8 million, or $0.60 per diluted share, in Q3 2018.
Despite the declines, Wolverine World Wide VP and CFO Mike Stornant was optimistic about the company’s third-quarter results.
“The strong results from Merrell, Sperry and Saucony demonstrate the benefits of our demand creation investments and steady execution against our global growth model,” he explained in a press release. “This revenue performance combined with continued operational discipline led to excellent earnings leverage in the quarter, with adjusted earnings per share growth of nearly 10% and gross margin of 42.4%, the highest of any third quarter for the company.”
Year to date, the company’s revenues totaled $1.67 billion, up from $1.66 billion in the first nine months of fiscal 2018. Earnings for the period were $129.4 million ($1.44 per diluted share), down from $160.8 million ($1.65 per diluted share).
Looking forward, Wolverine now expects full-year revenue for fiscal 2019 to be around $2.28 billion. Diluted earnings per share are predicted to be approximately $1.96.
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