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Wolverine Worldwide revenues decline, provides weak outlook

By Prachi Singh

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Management |REPORT

Wolverine Worldwide reported revenue of 751.2 million dollars for the fourth quarter, which the company said was in line with the guidance. Underlying revenue declined 2.9 percent versus the prior year and on a reported basis, revenue declined 7.1 percent versus the prior year. For the full year, reported revenue of 2.69 billion dollars, declined 2.5 percent and underlying revenue increased 2.1 percent versus the prior year.

“We finished the year with both revenue and adjusted earnings per share in line with our expectations for the fourth quarter, highlighted by significant growth in adjusted earnings per share on a constant currency basis,” said Blake W. Krueger, Wolverine Worldwide's Chairman, Chief Executive Officer and President, adding, “Our ability to deliver strong earnings in a challenging global retail and consumer environment continues to validate the power of our diversified brand portfolio and disciplined operational execution.”

Fourth quarter and FY15 financial review

Adjusted diluted earnings per share were 0.33 dollar. On a constant currency basis, adjusted diluted earnings per share were 0.40 dollar, an increase of 33.3 percent versus 0.30 dollar in the prior year. Reported diluted earnings per share were 0.12 dollar, compared to 0.10 dollar per share in the prior year. Reported ecommerce revenue growth accelerated in the fourth quarter to approximately 25 percent.

Adjusted diluted earnings per share, for the year were 1.45 dollars and on a constant currency basis, adjusted diluted earnings per share were 1.58 dollars, compared to 1.62 dollars per share in the prior year. Reported diluted earnings per share were 1.20 dollars, compared to 1.30 dollars per share in the prior year. Full-year reported eCommerce revenue grew approximately 20 percent.

Fiscal 2016 guidance

The company expects the global retail environment to remain challenging in 2016, with the current domestic retail channel inventory overhang and the slowdown in China potentially impacting key markets. The significantly stronger US dollar is also a meaningful headwind on the Company's outlook for fiscal 2016. The company said that planned retail store closures and the exit of the Cushe business will also impact the year ahead.

For fiscal 2016, the company expects consolidated reported revenue in the range of 2.475 billion dollars to 2.575 billion dollars, representing an underlying revenue decline in the range of approximately 4.3 percent to 0.5 percent. Reported revenue is expected to decline in the range of approximately 8 percent to 4.3 percent. Constant currency adjusted earnings per share in the range of 1.48 dollars to 1.58 dollars and reported diluted earnings per share in the range of 1.20 dollars to 1.30 dollars.

Wolverine Worldwide