Wolverine Worldwide posts 7.3 percent fall in FY16 turnover

Reported revenue at Wolverine Worldwide of 2,494.6 million dollars was down 7.3 percent versus the prior year, while underlying revenue declined 4.9 percent. The company’s adjusted diluted earnings per share were 1.36 dollars and on a constant currency basis, were 1.52 dollars, compared to 1.45 dollars in the prior year.

"Our diverse portfolio of global brands, exceptional operating platform, and strong business model continue to fuel a powerful earnings engine, even when faced with the current retail environment," said Blake W. Krueger, Wolverine Worldwide's Chairman, CEO and President said in a statement, adding, "Revenue finished in line with our original outlook entering the year, and we delivered solid adjusted earnings.”

Fourth quarter and full year highlights

In the fourth quarter, reported revenue of 729.6 million dollars was down 2.9 percent but underlying revenue grew 0.1percent versus the prior year fourth quarter.

Reported gross margin for the quarter was 36.6 percent compared to 36.2 percent in the prior year and adjusted gross margin on a constant currency basis was 37.7 percent, up 110 basis points versus the prior year. Reported operating margin was 2.1 percent, compared to 1.9 percent and adjusted operating margin on a constant currency basis was 7.3 percent, up 140 basis points versus the prior year.

Reported diluted loss per share was 0.02 dollar, compared to earnings per share of 0.12 dollar in the prior year, while adjusted diluted earnings per share were 0.33 dollar and on a constant currency basis, were 0.36 dollar, compared to 0.33 dollar in the prior year.

For the full year, reported gross margin was 38.5 percent, compared to 39.1 percent in the prior year. Adjusted gross margin on a constant currency basis was 39.7 percent, up 50 basis points and reported operating margin was 6.4 percent, compared to 7.5 percent in the prior year. Adjusted operating margin on a constant currency basis was 9.3 percent, up 40 basis points versus the prior year. Reported diluted earnings per share were 0.89 dollar compared to 1.20 dollars in the prior year.

The company closed 101 stores during 2016 as part of its omnichannel transformation initiative.

Expects to report decline in 2017 turnover

The company said that it enters 2017 prepared to drive earnings growth despite expectations that the macroeconomic challenges will persist, the US dollar will remain strong, and the global retail environment will remain tepid with certain channels facing continued pressure.

For fiscal 2017, the company expects reported revenue in the range of 2.270 billion dollars to 2.370 billion dollars, a decline of approximately 9 percent to 5 percent. Underlying revenue is expected in the range of down 2.3 percent to growth of 1.9 percent, reflecting approximately 160 million dollars to 180 million dollars of impact from currency and store closures.

Reported diluted earnings per share are expected to be in the range of 1.19 dollars to 1.29 dollars and adjusted diluted earnings per share are expected in the range of 1.45 dollars to 1.55 dollars. On a constant currency basis, adjusted earnings per share are forecasted to be in the range of 1.53 dollars to 1.63 dollars.

Picture:Wolverine