Wolverine revenue declines but remains in line with Q2 expectations

By

Obi Anyanwu

Published
Jul 27, 2016

Wolverine World Wide, Inc. on Tuesday reported the financial results for its second quarter of 2016. Company Chairman, CEO and President Blake W. Krueger and Wolverine SVP and CFO Mike Stornant were both very pleased with the company’s performance as quoted in the report, and they cited the company’s business model as the reason for its positive numbers.

 Krueger said, "Equally important, we continued to drive progress against our key strategic initiatives, which are designed to accelerate growth and improve earnings performance through a relentless focus on the consumer, product innovation, and compelling storytelling. While the global retail environment continues to be volatile, our diversified business model - built around an industry-leading portfolio of brands - served us well in the quarter, and we expect that it will continue to be a critical competitive advantage for us in the future."
 
Wolverine restructured its brands operations in February by consolidating its portfolio into the Wolverine Outdoor and Lifestyle Group, Wolverine Boston Group and Wolverine Heritage Group. The shift led to a favorable first quarter and start to the year.

Second quarter revenue declined 7.4% to $583.7 million, but it was in line with expectations. Gross margin decreased to 38.8% from 39.1%, operating margin was 7.2% compared to 7.6% in the previous year, and diluted earnings per share were $0.24.
 
Cash and cash equivalents were $221.7 million and reported debt was $808 million, which resulted in net debt of $586.3 million at quarter end.
 
Wolverine reaffirmed its revenue outlook for 2016. Consolidated reported revenue is expected to decline in range of 8.0% to 4.3% on a reported basis and be in range of $2.475 billion and $2.575 billion.