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Wolverine Worldwide reports growth in Q4 sales and profit

By Prachi Singh

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Business

Wolverine Worldwide, Inc. said reported revenue of 579.6 million dollars increased 0.2 percent during the fourth quarter, while underlying revenue increased 3.8 percent and further adjusting for currency, increased 4.6 percent. Reported revenue of 2,239.2 million dollars decreased 4.7 percent for the full year. Underlying revenue increased 2.5 percent and further adjusting for currency, increased 2.3 percent.

“Our ‘Global Growth Agenda’ gained momentum in the fourth quarter, with underlying revenue growing 4.6 percent on a constant currency basis. This was the highest quarterly revenue growth of the year driven by our two largest brands Merrell and Sperry,” said Blake Krueger, Wolverine Worldwide’s Chairman, CEO and President in a statement, adding, “For the full-year, we achieved attractive underlying revenue growth and our efficient business model allowed us to deliver significant profit leverage including record gross margin and earnings."

Highlights of Wolverine Worldwide’s Q4 and full year results

Reported gross margin for the quarter was 39.2 percent compared to 38.4 percent in the prior year and on an adjusted basis, gross margin expanded 70 basis points compared to the prior year. Reported operating margin was 9.3 percent, while adjusted operating margin was 10.7 percent, a decrease of 30 basis points compared to the prior year.

Reported gross margin for the full year of 41.1 percent was, Wolverine Worldwide said, a record for the company and compares to 38.9% in the prior year. On an adjusted basis, gross margin expanded 150 basis points compared to the prior year. Reported operating margin was 11.2 percent compared to 1.3 percent in the prior year, while adjusted operating margin was 12 percent, an increase of 80 basis points compared to the prior year.

Fourth quarter reported diluted earnings per share were 40 cents, compared to a loss per share of 65 cents in the prior year, while adjusted diluted earnings per share were 52 cents compared to 41 cents in the prior year, an increase of 27 percent. Reported diluted earnings per share were 2.05 dollars for the year, compared to 0 dollar in the prior year, while adjusted diluted earnings per share were 2.17 dollars compared to 1.64 dollars in the prior year, an increase of 32 percent.

Wolverine Worldwide provides initial revenue and earnings outlook

For the fiscal year 2019, the company added, revenue is expected to be in the range of 2.28 billion dollars to 2.33 billion dollars, representing growth of 3 percent at the mid-point of the range.

Gross margin is expected to be in the range of 41.3 percent to 41.8 percent, up 45 basis points at the mid-point of the range. Reported operating margin is expected to be in the range of 11.4 percent to 11.8 percent and adjusted operating margin in the range of 12.2 percent to 12.6 percent, including 40 million dollars of on-going investments to support the company’s Global Growth Agenda.

Reported diluted earnings per share are expected to be between 2.03 dollars to 2.18 dollars and adjusted diluted earnings per share are expected to be between 2.20 dollars to 2.35 dollars.

Picture:Facebook/Wolverine Boots & Apparel

Wolverine Worldwide