Wolverine Worldwide results in line with expectations

Worldwide
Published:  29 February, 2016

Wolverine Worldwide has reported full year 2015 results to be in line with the company’s expectations and announced it will pursue with planned retails store closures in 2016.

The company reported both fourth-quarter and 2015 full year results to be in line with the guidance, with reported revenue of US$751.2 million for Q4 and US$2.69 billion for the full year.

On a reported basis, revenue declined 2.5% for the full-year, compared with 2014. Adjusted gross margin on a constant currency basis was 39.7%, an increase of 30 basis points year-on-year. Reported gross margin was 39.1%, compared with 39.3% in 2014.

On a constant currency basis, adjusted operating margin on was 9.4%, 50 basis points lower than the previous year due primarily to planned incremental brand investment and higher pension expense. Reported operating margin was 7.5%, compared with 8.3% in 2014.

Wolverine Worldwide reported an acceleration of e-commerce revenue of about 25% for Q4 and of 20% for the full-year 2015. The company said it expects the retail environment in 2016 to be globally challenging and, adapting to the shift from in-store buying to e-commerce, it plans to carry out further retail closures.

Concerns include the current domestic retail channel inventory overhang, the slowdown in China and the strong dollar, which can potentially impact key markets.

No additional details have been provided related to the closures, but according to Mike Stornant, SVP and CFO, Wolverine Worldwide, these will concern stores reaching their lease expirations.

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