- Prachi Singh |
Wolverine World Wide, Inc. reported revenue of 566.9 million dollars, a decrease of 5.3 percent during the second quarter, while the company said, underlying revenue increased 3.9 percent and further adjusting for currency, increased 3.3 percent. The company added that reported diluted earnings per share were 0.57, compared to 0.21 dollars in the prior year, while adjusted diluted earnings per share were 0.54 dollar compared to 0.43 dollar in the prior year, an increase of 26 percent.
"We had a strong second quarter highlighted by solid revenue performance, especially from Merrell and Sperry, along with earnings that significantly surpassed expectations" said Blake W. Krueger, Wolverine World Wide's Chairman, CEO and President in a statement, adding, "Our underlying revenue growth during the quarter was the highest since the second quarter of 2015, and reflects early progress against our Global Growth Agenda."
Reported gross margin was 41.3 percent compared to 37.9 percent in the prior year and on an adjusted basis, gross margin of 41.3 percent expanded 250 basis points compared to prior year. Reported operating margin was 12 percent compared to 5.2 percent in the prior year and adjusted operating margin was 12.5 percent, an increase of 140 basis points compared to the prior year.
Wolverine Worldwide raises full year earnings outlook
Based on the strong second quarter earnings results, the company is raising its earnings projection for the full year. The company said, revenue is expected to be in the range of 2.24 billion dollars to 2.32 billion dollars, gross margin expansion in the range of 100 to 130 basis points higher compared to the adjusted prior year, despite a full-year negative mix impact of 20 basis points from 2017 store closures.
Reported operating margin is now expected to be between 11.6 percent to 11.9 percent and adjusted operating margin is now expected to be 12.1 percent to 12.4 percent, inclusive of up to 45 million dollars of incremental investments to support the company's Global Growth Agenda. The company expects reported diluted earnings per share to be in the range of 2.05 dollars to 2.12 dollars and adjusted diluted earnings per share in the range of 2.08 dollars to 2.15 dollars.