Wolverine Worldwide Q3 earnings rise 9.7 percent

Wolverine World Wide, Inc., for its third quarter said, reported revenue of 574.3 million dollars increased 2.8 percent and adjusting for currency, revenue increased 3.6 percent. Reported gross margin of 42.4 percent, the company added, was in line with expectations, and increased 80 basis points compared to 41.6 percent in the prior year. Reported operating margin was 11.9 percent, while adjusted operating margin of 14.1 percent expanded 150 basis points compared to the prior year. Reported diluted earnings per share were 57 cents compared to 60 cents in the prior year and adjusted diluted earnings per share increased 9.7 percent to 68 cents.

“We delivered our highest quarterly revenue increase of the year driven by constant currency growth of over 11 percent from Merrell, Sperry and Saucony. Our adjusted earnings per share of 68 cents were a record performance for the company and meaningfully better than our expectations heading into the quarter,” said Blake Krueger, Wolverine World Wide’s Chairman, Chief Executive Officer and President in a statement.

The company is maintaining its full-year revenue guidance and updated its full-year earnings outlook to reflect estimated new tariff costs in the fourth quarter. The company said, revenue is expected to be approximately 2.28 billion dollars including approximately 7 percent constant currency growth in the fourth quarter, gross margin to be approximately 41 percent matching the prior year's record level, reported operating margin to be approximately 10.5 percent and adjusted operating margin to be approximately 12 percent. The company now expects reported diluted earnings per share to be approximately 1.96 dollars and adjusted diluted earnings per share to be approximately 2.25 dollars including 3 cents related to new tariffs on products expected to be sold in the fourth quarter.