Wolverine Worldwide (WWW), a manufacturer of work-related footwear and apparel, Tuesday reported a small fall in profit for the first quarter, amid higher tax expenses. Revenues increased significantly, benefiting from recent acquisitions. The company updated its full year view.
Net earnings attributable to the company decreased to $29.8 million or $0.60 per share from last year's $31.2 million or $0.64 per share.
This quarter's results include a full quarter from the Sperry Top-Sider, Saucony, Stride Rite, and Keds brands that the firm acquired in October 2012.
Excluding non-recurring transaction and integration expenses, earnings per share were $0.81. On average, 11 analysts polled by Thomson Reuters expected earnings of $0.55 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter increased to $645.9 million from $322.8 million in the prior year, helped by the contribution from Sperry Top-Sider, Merrell, and Saucony. Analysts expected revenues of $631.52 million.
Cost of products more than doubled to $383.8 million. Gross margin slipped to 40.6 percent from 41.0 percent.
Income taxes increased to $7.9 million from $4.4 million. Effective tax rate was 21.0 percent compared to 12.4 percent last year. Looking ahead, full year adjusted earnings per share are expected in the range of $2.50 to $2.65 per share, compared to prior year adjusted earnings per share of $2.29. The prior year's earnings included $0.19 per share of non-recurring tax benefits.
On a reported basis, earnings per share are expected in the range of $2.05 to $2.20 per share.
Annual revenue expected in the range of $2.7 to $2.775 billion, compared to prior year pro forma revenue of $2.547 billion. Wall Street expects earnings of $2.63 per share on revenues of $2.72 billion.
In February, the company said it sees earnings per share, adjusted to exclude non-recurring transaction and integration expenses, in the range of $2.50 to $2.65, representing growth of 9.2 percent to 15.7 percent from the previous year.
Full-year consolidated revenue guidance was in the range of $2.7 to $2.8 billion, up 64.5 percent to 70.6 percent from reported fiscal 2012 revenue of $1.641 billion
WWW closed at $44.73 on Monday.
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