Revenue down at Wolverine

United States
Published:  03 August, 2016

Footwear brand owner, Wolverine World Wide beat guidance for the second quarter ended June 18 reporting revenue declined 7.4% to $583.7 million. The maker of Merrell, Sperry, Saucony and Chaco footwear said underlying revenue declined 5.2% versus the prior year.

“We delivered better-than-expected results for the second quarter,” said Blake W. Krueger, Wolverine Worldwide’s Chairman, Chief Executive Officer and President. “Equally important, we continued to drive progress against our key strategic initiatives, which are designed to accelerate growth and improve earnings performance through a relentless focus on the consumer, product innovation, and compelling storytelling. While the global retail environment continues to be volatile, our diversified business model – built around an industry-leading portfolio of brands – served us well in the quarter, and we expect that it will continue to be a critical competitive advantage for us in the future.”

Reported gross margin was 38.8%, compared to 39.1% in the prior year. Operating margin was 7.2%, compared to 7.6% in the prior year. Adjusted operating margin on a constant currency basis was 8.4%. Inventory levels to be meaningfully lower than 2015 at year-end. Inventory balances at the end of the quarter were 2.9% lower than the prior year.

Cash and cash equivalents were $221.7 million. Reported debt was $808.0 million, which resulted in net debt of $586.3 million at the of the quarter.

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