Wolverine Worldwide record profit: USD1,409 million

Am

erican footwear maker Wolverine Worldwide (NYSE: WWW) Monday reported record revenue for both the fourth quarter and fiscal year ended December 31, 2011. This year's revenue represents the second consecutive year of double-digit

growth for the group.

Quarterly net income slid to $23 million, or 47 cents per share, compared to a year-earlier profit of $25.6 million, or 52 cents per share and above the 45 cents a share, on sales of $407 million expected by analysts polled by Bloomberg.

"Our portfolio of strong, global lifestyle brands combined to deliver another year of record performance," said Blake W. Krueger, the Company's Chairman and Chief Executive Officer in a statement released Monday.

Revenue rose 12.9% to a record $1,409.1 million, driven by double-digit growth from each of the Company's branded operating groups: the Outdoor Group, Lifestyle Group and Heritage Group.

"Each of our three branded operating groups and our direct-to-consumer business contributed to the year's outstanding results.  Additionally, all major international regions reported double-digit revenue growth, as our newly created International Group focused on the significant opportunities outside of North America.  Our distributor and licensee business, which markets our brands in nearly 190 countries, also had an exceptional year, with revenue up nearly 40%.  We are very proud of the record performance in 2011 and are excited about the global momentum of our brands, our continued geographic expansion and the impressive product innovations we have planned for 2012."

Foreign exchange contributed $17.3 million, or 1.4%, to reported revenue growth.  This year's revenue represents the second consecutive year of double-digit growth, reflecting strong momentum for the Company's brand portfolio in almost all major geographies.

Gross margin of 39.5% was equal to the prior year's reported gross margin, representing outstanding performance in a challenging sourcing and product cost environment. Meanwhile, operating margin expanded to a record 12.1%, compared to prior year reported operating margin of 11.4%.

Diluted earnings per share increased 14.3%, to $2.48, compared to prior year adjusted earnings per share of $2.17.  Reported full-year earnings per share in 2010 were $2.11.

The free cash flow generated in 2011 was used to invest for future growth, fund benefit plans for employees and return value to shareholders through the payout of $22.7 million in dividends and the repurchase of 1.8 million shares for $65.3 million, management at the company explained.  

Krueger concluded, "We are in a strong position heading into the new year, with several global consumer trends and macro lifestyle trends working in our favor.  The expanding footprint of our lifestyle brands and our ability to target many different consumer groups through a variety of distribution channels enables us to outperform in many different economic environments.  We are certainly excited about the Company's prospects for 2012."