- Prachi Singh |
Wolverine World Wide, Inc. reported revenue of 607.4 million dollars, an increase of 4.8 percent, while adjusting for currency, revenues increased 5.1 percent. The company said in a statement, reported gross margin of 37.8 percent, decreased 140 basis points versus the prior year. Reported operating margin was negative 0.8 percent, and adjusted operating margin was 10.1 percent. Reported diluted loss per share was 1 cent, compared to earnings per share of 39 cents in the prior year, while adjusted diluted earnings per share increased 13.5 percent to 59 cents.
“We delivered a strong finish to the fiscal year reflecting progress on our Global Growth Agenda, which drove over 5 percent constant currency revenue growth and record fourth quarter adjusted earnings per share of 59 cents. Our fourth quarter revenues were highlighted by mid-teens growth from our largest brands - Merrell and Sperry, acceleration in our digital-direct DTC offense and improved international expansion,” said Blake Krueger, Wolverine World Wide’s Chairman, Chief Executive Officer and President.
Wolverine Worldwide’s full year revenues up 1.5 percent
For the full year, the company reported revenue of 2,273.7 million dollars, an increase of 1.5 percent compared to the prior year and adjusting for currency, increased 2.3 percent. Reported gross margin of 40.6 percent, decreased 50 basis points versus the prior year and reported operating margin was 7.5 percent, while adjusted operating margin was 11.5 percent. The company added that reported diluted earnings per share were 1.44 dollars, compared to 2.05 dollars in the prior year, while adjusted diluted earnings per share increased 3.7 percent to 2.25 dollars.
Providing its initial revenue and earnings outlook for the full-year, the company said that this guidance includes the current estimated impact related to the coronavirus for the first half of 2020. China is expected to represent less than 20 percent of its global production, down from approximately 40 percent in fiscal 2019. Wolverine Worldwide added that revenue is expected to be approximately 2.29 billion dollars to 2.34 billion dollars, representing growth of approximately 3 percent at the high-end of the range, while constant currency revenue growth is expected to be approximately 3.5 percent at the high-end of the range. This outlook includes an estimated revenue impact from the coronavirus of approximately 30 million dollars in the first half of 2020. Excluding the estimated coronavirus impact, constant currency growth in 2020 is expected to be 4.5 percent at the high-end of the range.
The company’s gross margin is expected to be approximately 41 percent, reported operating margin is expected to be approximately 11 percent and adjusted operating margin is expected to be approximately 12 percent. Reported diluted earnings per share are expected to be approximately 2.05 dollars to 2.20 dollars and adjusted diluted earnings per share are expected to be approximately 2.25 dollars to 2.40 dollars. Excluding the estimated coronavirus impact and the impact of foreign currency, adjusted EPS on a constant currency basis is expected to be 2.60 at the high-end of the range.