Revenue increase for Wolverine Worldwide in Q3

Worldwide
Published:  08 November, 2019
Merrell Ontario/Credit: ray.roper

The U.S. based footwear manufacturer has posted a reported revenue of US$574.3 million for the third quarter ended September 28, 2019, up 2.8% year-on-year.

Wolverine Worldwide’s reported gross margin was 42.4% in the third quarter of 2019, in line with the Company’s expectations, and increased 80 basis points compared with 41.6% in the prior year. Reported operating margin was 11.9%, and the adjusted operating margin of 14.1% exceeded expectations expanding 150 basis points compared to the prior year. Reported diluted earnings per share were US$0.57, compared with US$0.60 in the same quarter of 2018, while adjusted diluted earnings per share increased 9.7% to US$0.68 compared with US$0.62 a year ago.

Mike Stornant, Senior Vice President and Chief Financial Officer, Wolverine Worldwide, said the results benefitted from the strong performance of the Merrell, Sperry and Saucony brands. “This revenue performance combined with continued operational discipline led to excellent earnings leverage in the quarter, with adjusted earnings per share growth of nearly 10% and gross margin of 42.4%, the highest of any third quarter for the Company,” said Stornant.

Wolverine said it is maintaining its full-year revenue guidance and updating its full-year earnings outlook to reflect estimated new tariff costs in the fourth quarter. Revenue is expected to be approximately US$2.28 billion, including approximately 7% constant currency growth, in the fourth quarter. Gross margin is still expected to be approximately 41%, matching the prior year's record level.