Reported revenue was US$581.3 million in the quarter, down -3.7%. Adjusted revenue decreased 8% after taking into effect the quarterly calendar change, while underlying revenue increased 1.1%. Reported gross margin stood at 39.7%, against 39.3% in the prior year and adjusted gross margin on a constant currency basis was 40.4%, (Q3 2016: 39.1%), reflecting an improvement despite a negative impact from store closures, according to the Group. Reported operating margin was 6.1%, versus 11.4% in the same quarter a year ago. Adjusted operating margin on a constant currency basis was 11.9% (Q3 2016:  10.5%).

The Group says it continued to make progress on its “comprehensive portfolio management initiatives”. In addition to the license of the Stride Rite brand to Vida Shoes International, and the sale of the Sebago Brand announced on September 29, the Company sold its Department of Defense contract business and certain associated assets. Read more here.

Wolverine also continued to realign its retail store fleet under the previously announced Store Restructuring Plan; 188 stores have been closed since the beginning of 2017 and an additional 27 are expected to close before the end of fiscal 2017, leaving a remaining retail store fleet of approximately 80 stores.

The Group says it is narrowing the revenue outlook to the “upper end of the prior range” and now expects reported revenue of US$2.34 billion to US$2.37 billion; a reported decline of approximately 6.2% to 5.0%. Underlying revenue, however, is expected to be within the range of flat to growth of 1.5%, reflecting approximately US$160 million revenue impact from retail store closures and the Stride Rite transition.