Wolverine Worldwide has reported revenue of US$534.1 million (-9.7%) during the first quarter of 2018, while underlying revenue increased +1.8% and, further adjusting for currency, increased +0.3%. Reported gross margin was 42.7%, against 39.7% in the prior year and reported operating margin was 11.5% (Q1 20017: 5.8%). Adjusted operating margin was 12%, up year-on-year. Profit totalled US$46.6 million, or US$0.48 per share in the quarter against US$16.8 million, or US$0.17 per share a year ago. Analysts had expected the company to earn US$0.37 per share, according to Reuters.

“During the first quarter, Merrell, Sperry, and our international business exceeded our revenue expectations and our owned e-commerce business delivered mid-twenties underlying growth. These results were driven in large part by executing against our new and more profitable operating model focused on speed, innovation and growth”, said Blake Krueger, Chairman, President and CEO, Wolverine Worldwide, adding the Group is currently implementing key investments and activating critical initiatives as part of its Global Growth Agenda, which refers to ‘relentless’ and ‘frequent’ introduction of innovative products, a more offensive e-commerce growth (beyond 20%), and an accelerated international growth, particularly in China.

In 2018, the Group expects revenue to be in the range of US$2.24-US$2.32 billion, and gross margin expansion in the range of 50 to 90 basis points, despite a negative mix impact of 20 basis points from 2017 store closures.