Wolverine Worldwide confirms ‘Global Growth Agenda’

Worldwide
Published:  21 November, 2018
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The footwear manufacturer headquartered in Rockford, U.S. state of Michigan, has reported revenue down -3.9% in the third quarter of the Company’s current fiscal year, to US$558.6 million.

Wolverine’s underlying revenue increased +0.5% in the quarter and further adjusting for currency, increased +1.1%. Reported gross margin was 41.6% compared with 39.7% in the prior year, while reported operating margin was 12.2%, against 6.4% in the prior year. Reported diluted earnings per share amounted to US$0.60, compared with US$0.24 in the prior year.

“We reported strong earnings during the third quarter driven by healthy gross and operating margin expansion. Our ‘Way Forward’ transformation initiatives continue to gain traction and deliver tremendous benefits as evidenced by better than expected operating leverage in the quarter”, said Blake Krueger, Chairman, CEO and President, Wolverine Worldwide. “We expect underlying revenue growth for the fourth quarter to improve meaningfully as our growth initiatives take hold especially for our two largest brands, Merrell and Sperry".

In its fourth quarter and full year outlook, Wolverine said the Company “remains on track to invest up to US$45 million in incremental investments to drive future growth” as part of its ‘Global Growth Agenda’, with growth in the eCommerce business expected to “remain very strong” in the fourth quarter. For fiscal 2018, revenue is expected to be approximately US$2.24 billion, representing 2.5% underlying growth for the full year.

Wolverine manufactures casual, active lifestyle, work, outdoor sport, athletic, children's and uniform footwear and apparel. Its brands portfolio includes Merrell, Sperry, Hush Puppies, Wolverine, Keds, Stride Rite, as well as Cat and Harley Davidson under licence.

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