- Prachi Singh |
For the first quarter, Wolverine Worldwide reported revenue of 534.1 million dollars, down 9.7 percent, while underlying revenue increased 1.8 percent and further adjusting for currency, increased 0.3 percent. Reported diluted earnings per share was 0.48 dollar, compared to 0.17 dollar in the prior year, while adjusted diluted earnings per share were 0.50 dollar compared to 0.37 dollar in the prior year, an increase of 35 percent.
"Our first quarter was very strong and an excellent start to the year," said Blake W. Krueger, Wolverine Worldwide's Chairman, Chief Executive Officer and President in a media release, adding, "The company had record earnings per share performance, much better than expected entering the year. This reflects our ability to harvest the benefits of our recent transformation initiatives."
Highlights of Wolverine Worldwide’s first quarter
Reported gross margin for the quarter was 42.7 percent compared to 39.7 percent in the prior year. Adjusted gross margin in the prior year was 41.2 percent. Reported operating margin was 11.5 percent, compared to 5.8 percent in the prior year, while adjusted operating margin was 12 percent, up 110 basis points compared to the prior year.
"The company is currently implementing key investments and activating critical initiatives as part of our new ‘Global Growth Agenda’, the next phase of our holistic transformation. During the first quarter, Merrell, Sperry and our international business exceeded our revenue expectations and our owned ecommerce 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," Krueger added.
Wolverine Worldwide raises earnings outlook for FY18
The company said strong first quarter earnings results were better than expected, so now it is raising its earnings projection for the year. Reported diluted earnings per share are expected to be in the range of 1.92 dollars to 2.02 dollars and adjusted diluted earnings per share of 2 dollars to 2.10 dollars.
The company expects revenue in the range of 2.24 billion dollars to 2.32 billion dollars, 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, reported operating margin of 11.6 percent to 11.9 percent and adjusted operating margin of 12 percent to 12.3 percent, inclusive of 40 to 45 million dollars of incremental investments to support the company's ‘Global Growth Agenda’.