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Wolverine Worldwide Q2 Results Beat Street; Backs FY14 Adj. EPS View

Wolverine World Wide Inc. (WWW), a manufacturer of work-related footwear and apparel, Tuesday reported a rise in its second-quarter net earnings to $27.1 million, or $0.27 a share, from $17.6 million, or $0.18 a share, last year. Adjusted earnings per share amounted to $0.31 during the latest quarter. On average, 14 analysts polled by Thomson Reuters expected earnings per share of $0.27 for the quarter. Analysts' estimates typically exclude one-time items.

Revenue for the quarter reached $613.5 million, a 4.4% increase from the prior-year period's $587.8 million; whereas twelve analysts projected revenues of $608.50 million. Underscoring the breadth of the Company's diversified portfolio, each of its three brand operating groups contributed to the quarter's revenue growth.

Looking ahead, the firm sees full-year consolidated revenue to approximate $2.775 billion. Also, the company backed its adjusted earnings per share estimate in the range of $1.57 - $1.63 per share. On a reported basis, earnings per share are expected in the range of $1.32 - $1.38 per share and reflect the impact of the Strategic Realignment Plan. Analysts project earnings per share of $1.61 per share for 2014.

In order to accelerate growth and improve overall profitability, the company also announced a Strategic Realignment Plan, comprising store closures, mainly within the Stride Rite fleet, and several other initiatives. The realignment of the consumer-direct business is planned to optimize the fleet of retail locations, right-size the supporting infrastructure, address a fundamental shift in consumer shopping behavior and allow for greater focus on important omni-channel initiatives.

The plan includes the closing of nearly 140 retail locations, primarily Stride Rite stores, over the next 18 months. Of these, the firm believes that approximately 60 stores would be shut down by fiscal year end, with the balance closed by the end of 2015.

by RTTNews Staff Writer

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