Reported revenue of US$523.4 million at Wolverine Worldwide Inc. decreased 2 percent during the first quarter, while adjusting for currency, revenue decreased 0.9 percent. Reported gross margin was 42.1 percent, as compared to 42.7 percent in the prior year, while reported operating margin was 10 percent and adjusted operating margin was 10.9 percent compared to 12 percent in the prior year.
“We are pleased to report first quarter earnings per share which exceeded our expectations,” said Blake Krueger, Wolverine Worldwide’s Chairman, Chief Executive Officer and President in a statement, adding, “Four of our top-five brands delivered revenue above plan during the quarter, including Merrell and Saucony, and our owned ecommerce business continued to be robust, growing 28 percent over the prior year. We expect revenue growth to resume in the second quarter and accelerate during the second half of the year as we continue to invest in a variety of initiatives to drive topline growth and attractive earnings leverage.”
Wolverine Worldwide updates FY19 outlook
The company said, revenue is still expected to be in the range of US$2.28 billion to US$2.33 billion representing growth of 3 percent at the mid-point of the range. Gross margin is still expected to be in the range of 41.3 percent to 41.8 percent, up 45 basis points at the mid-point of the range.
Reported operating margin is now expected to be in the range of 11.3 percent to 11.6 percent and adjusted operating margin is still expected in the range of 12.2 percent to 12.6 percent, including approximately 40 million of on-going investments to support the company’s Global Growth Agenda.
The company further said that reported diluted earnings per share are now expected to be between 2 dollars and 2.15 dollars and adjusted diluted earnings per share are still expected to be between 2.20 dollars and 2.35 dollars.
The company's board of directors has declared a 25 percent increase in the quarterly dividend, which follows a 33 percent increase in the prior year.
By Prachi Singh - World Footwear