- Prachi Singh |
Wolverine World Wide, Inc. has provided an outlook for fiscal year 2018 including its investment plan to drive its new global growth agenda. Announcing preliminary financial results for the fiscal year ended December 30, 2017, the company said revenues were 2.35 billion dollars, at the top end of its full-year outlook and the company expects fiscal 2017 adjusted diluted earnings per share at the high end of its previous earnings outlook of 1.60 dollars to 1.65 dollars and diluted earnings per share in the range of loss of 0.04 dollar to earnings of 0.01 dollar.
"The Company has been keenly focused on operational excellence, improving our brand platforms, and portfolio management over the past two years," said Blake W. Krueger, Wolverine Worldwide's Chairman, Chief Executive Officer and President in a press release, adding, "We are in the last innings of completing our work, and we expect this important effort will allow us to achieve our operating margin target ahead of schedule while creating the financial capacity to invest in key growth initiatives."
Wolverine Worldwide reveals outlook for FY18
Building off of its strong performance in 2017, and the ongoing benefits expected from the Wolverine Way Forward transformation, the company expects to deliver mid-single-digit underlying revenue growth in 2018, achieve its 12 percent adjusted operating margin target even with significant incremental investments to drive future growth, and recognize meaningful benefits from recent US corporate tax reform.
For the fiscal 2018, Wolverine expects revenue in the range of 2.24 billion dollars to 2.32 billion dollars, a reported decline of 1.3 percent and underlying growth of nearly 6 percent at the high-end of the range, incremental investments of 40 million dollars to 45 million dollars to fuel growth, reported operating margin of 11.6 percent, adjusted operating margin of 12 percent, inclusive of the incremental investment spend, reported diluted earnings per share in the range of 1.87 dollars to 1.97 dollars and adjusted diluted earnings per share in the range of 1.95 dollars to 2.05 dollars.
The company expects to deliver its 2018 underlying revenue outlook through ecommerce growth of at least 20 percent, high-single-digit growth in its international business, and low-single-digit growth in its US wholesale business. During 2018, the Company will execute on its Global Growth Agenda, which includes 40 million dollars to 45 million dollars of incremental investments.