- Prachi Singh |
Wolverine Worldwide, Inc. reported revenue of 578.6 million dollars for the fourth quarter, a decrease of 20.7 percent or 7.1 percent after taking into effect the quarterly calendar change. The company said, underlying revenue for the quarter increased 1.7 percent, including nearly 18 percent underlying growth for Merrell. Reported revenue for the full year of 2.35 billion dollars decreased 5.8 percent against the prior year, while underlying revenue grew 0.6 percent.
"I am pleased with our fiscal 2017 financial performance and continued momentum in Q4, but I am especially proud of the major accomplishments achieved by our team over the last two years," said Blake W. Krueger, Wolverine Worldwide's Chairman, Chief Executive Officer and President in a statement.
Fourth quarter and full year highlights
Reported gross margin for the fourth quarter was 38.4 percent, compared to 36.6 percent in the prior year. Adjusted gross margin on a constant currency basis was 38.5 percent compared to 37.1 percent in the prior year, reflecting an improvement of 140 basis points despite a 50 basis point negative mix impact from store closures. Reported operating margin was negative 12.7 percent, compared to 2.1 percent in the prior year and adjusted operating margin on a constant currency basis was 10.7 percent compared to 8.1 percent in the prior year.
For the full year, reported gross margin was 38.9 percent, compared to 38.5 percent in the prior year. Adjusted gross margin on a constant currency basis was 40 percent, compared to 38.8 percent in the prior year, reflecting an improvement of 120 basis points despite a 50 basis point negative mix impact from store closures. Reported operating margin was 1 percent, compared to 6.4 percent in the prior year, while adjusted operating margin on a constant currency basis was 11.2 percent, a 270 basis points increase versus the prior year.
Reported diluted loss per share in the fourth quarter was 0.65 dollar, compared to 0.02 dollar in the prior year. Adjusted diluted earnings per share were 0.41 dollar compared to 0.34 dollar in the prior year, an increase of 20 percent.
Full year adjusted diluted earnings per share were 1.64 dollars, and, on a constant currency basis were 1.71 dollars compared to 1.36 dollars in the prior year, growth of nearly 26 percent. The company closed 215 stores during 2017 leaving 80 go-forward stores in the fleet.
Wolverine Worldwide reveals FY18 outlook
For FY18, the company expects to report revenue in the range of 2.24 billion dollars to 2.32 billion dollars, a reported decline of 1.3 percent and underlying growth of nearly 6 percent at the high-end of the range.
Gross margin expansion is expected in the range of 40 to 80 basis points, despite a negative mix impact of 20 basis points from 2017 store closures, reported operating margin of 11.6 percent and adjusted operating margin of 12 percent, inclusive of incremental investments in the company's ‘Global Growth Agenda’.
Reported diluted earnings per share are expected to be in the range of 1.87 dollars to 1.97 dollars and adjusted diluted earnings per share of 1.95 dollars to 2.05 dollars, an increase of 25 percent at the high-end of the range. Foreign currency is expected have a neutral impact on earnings. The company expects to announce a 33 percent increase in the annual dividend.