Wolverine Worldwide reports 1.1 percent underlying revenue growth in Q3

Reported revenue at Wolverine Worldwide for the third quarter of 581.3 million dollars decreased 3.7 percent, but adjusted revenue decreased 8 percent after taking into effect the quarterly calendar change. Underlying revenue, the company said, increased 1.1 percent. Reported gross margin was 39.7 percent, compared to 39.3 percent in the prior year.

"We continue to make excellent progress on our enterprise wide strategic transformation, the Wolverine Way Forward, including the recently announced sale of our Department of Defense business. Our third quarter results are reflective of this progress. We believe that the plan will enable us to drive global growth in the "new normal" fast-changing global consumer retail environment," said Blake W. Krueger, Wolverine Worldwide's Chairman, CEO and President in a media statement.

Reported earnings decline to 0.24 dollar

Reported diluted earnings per share were 0.24 dollar, compared to 0.49 dollar in the prior year. Adjusted diluted earnings per share were 0.43 dollar. On a constant currency basis, adjusted earnings per share were 0.45 dollar, compared to 0.45 dollar in the prior year.

Adjusted gross margin on a constant currency basis was 40.4 percent compared to 39.1 percent in the prior year, reflecting an improvement of 130 basis points despite a 90 basis point negative mix impact from store closures. Reported operating margin was 6.1 percent, compared to 11.4 percent in the prior year. Adjusted operating margin on a constant currency basis was 11.9 percent compared to 10.5 percent in the prior year.

The company update FY17 guidance

Wolverine Worldwide said, after a strong third quarter, coupled with some stable trends in the business, the company has narrowed its revenue outlook to the upper end of the prior range and now expects reported revenue of 2.340 billion dollars to 2.370 billion dollars. This is a reported decline of approximately 6.2 percent to 5 percent, but underlying revenue is expected to be within the range of flat to growth of 1.5 percent, reflecting approximately 160 million dollars revenue impact from retail store closures and the Stride Rite transition.

Reported operating margin is expected to be in the range of 5 percent to 5.4 percent and adjusted operating margin in the range of 10.6 percent to 10.9 percent, resulting from operational excellence initiatives focused on supply chain optimization, omnichannel transformation, and operational efficiencies. Fiscal 2016 adjusted operating margin was 8.5 percent.

Reported diluted earnings per share are anticipated to in the range of 0.76 dollar to 0.81 dollar compared to 0.89 dollar in fiscal 2016. Adjusted diluted earnings per share are now expected in the range of 1.60 dollars to 1.65 dollars compared to 1.36 dollars in fiscal 2016 adjusted on the same basis. On a constant currency basis, adjusted earnings per share are expected in the range of 1.67 dollars to 1.72 dollars.

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