Wolverine World Wide Inc. (WWW), a manufacturer of work-related footwear and apparel, Tuesday reported a lower second-quarter profit, reflecting acquisition-related transaction and integration costs. Quarterly revenues surged helped by its recently-acquired brands.
Earnings per share topped analysts' expectations, while revenues missed view. In the light of the year-to-date earnings performance, the company raised its full-year earnings per share guidance.
In the second quarter, net earnings attributable to the company declined to $17.9 million or $0.36 per share from $20.5 million or $0.42 per share in the previous year.
Excluding acquisition-related transaction and integration expenses, earnings per share in the recent quarter were $0.46. The company posted adjusted earnings of $0.48 per share in the prior-year quarter.
On average, 13 analysts polled by Thomson Reuters expected the company to earn $0.34 per share for the quarter. Analysts' estimates typically exclude special items.
The company said its second quarter included a full 12 weeks contribution from its October 2012 acquisition of Sperry Top-Sider, Saucony, Stride Rite, and Keds brands.
Revenues for the quarter surged 88 percent to $587.8 million, while analysts estimated $591.03 million.
Quarterly revenue was up 5.5 percent compared to prior year pro forma revenue. According to the firm, Sperry Top-Sider, Keds, Saucony, and Harley-Davidson Footwear led the revenue growth in the period.
Gross margin improved 320 basis points to 41 percent, helped by pricing discipline, favorable brand and channel mix, and better inventory management, the company said.
Operating expenses were $204.1 million, higher than $95.3 million a year earlier.
Blake Krueger, chairman and chief executive officer of the company stated, "The combined power of our brand portfolio is virtually unmatched in the industry, and the continuing global consumer interest in authentic brands anchored in performance and heritage positions us well for future growth."
For the full year, the company now expects adjusted earnings per share to be in the range of $2.60 to $2.75 per share, up from the prior estimate of $2.50 to $2.65 per share.
On a reported basis, earnings per share for the year are now expected to be in the range of $2.06 to $2.21, compared to the earlier outlook of $2.05 to $2.20 per share.
Revenues for the year are still expected to be in the range of $2.7 billion to $2.775 billion, representing 6.0 to 8.9 percent growth compared to prior year pro forma revenue of $2.548 billion.
Analysts expect the company to report earnings of $2.69 per share, on revenues of $2.74 billion for the full year.
WWW closed Monday's regular trading at $55.27 on the NYSE.
by RTT Staff Writer
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