Wolverine’s Q3 revenue in line with expectations

Worldwide
Published:  21 October, 2016

The American footwear manufacturer announced strong earnings in the third-quarter of 2016, despite a challenging retail environment.

Michigan based Wolverine Worldwide has reported revenue of US$603.7 million for the third-quarter ending September 10 down 11% compared with the same period the prior year, but in line with the company’s expectations. Underlying revenue declined 8.6% year-on-year.

Reported gross margin was 39.3%, compared with 40% in 2015, slightly better than expected according to the manufacturer. Adjusted gross margin on a constant currency basis was 40%, flat versus the prior year.

Reported operating margin in the period was 11.4%, against 11.2% a year earlier. Adjusted operating margin on a constant currency basis was 12.2%, up 30 basis points versus the prior year's adjusted operating margin.

"We delivered strong earnings results on revenue in line with our expectations for the third quarter, despite the tepid retail environment," said Blake W. Krueger, Chairman, CEO and President, Wolverine Worldwide. "The Company's position, premised on a core portfolio of global, industry-leading brands, remains strong, and we believe the investments and initiatives we're pursuing today will deliver greater value to shareholders in 2017 and beyond”, he added.

The Company also announced a new four-year share repurchase program, authorising up to US$300 million in share repurchases, hence, replacing the remaining balance of the Company's 2014 share repurchase program.

"We effectively managed inventory and expenses, generated very strong cash flow, and improved our working capital position, all of which we expect to continue into the fourth quarter. Looking ahead, we remain focused on driving operational improvements across the portfolio, including a review of strategic alternatives for some areas of the business”, said Mike Stornant, Senior Vice President and Chief Financial Officer, Wolverine.

As reported by ILM, the footwear manufacturer is preparing for an increase in military shoes’ orders by expanding its manufacturing plant and relocating operations in 2017.

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