Traverse City Record-Eagle


October 9, 2013

Wolverine 3Q results top analysts' estimates

ROCKFORD, (AP) — Wolverine Worldwide Inc.’s fiscal third-quarter net income climbed 66 percent as footwear sales improved across many of its brands.

The shoe and clothing company’s performance beat analysts’ estimates. It also raised its full-year adjusted earnings forecast again on Tuesday, citing its year-to-date performance.

Its shares climbed more than 3 percent in premarket trading.

For the period ended Sept. 7, Wolverine earned $54.4 million, or $1.08 per share, up from $32.7 million, or 66 cents per share, a year earlier.

Wolverine completed its $1.25 billion buyout of the performance and lifestyle group from Collection Brands Inc. in October 2012. The performance and lifestyle group includes the Sperry Top-Sider, Saucony, Stride Ride and Keds brands.

Removing acquisition-related expenses, earnings were $1.16 per share.

Analysts, on average, expected earnings of $1.03 per share, according to a FactSet survey.

Revenue more than doubled to $716.7 million from $353.1 million, driven by strong growth from the Sperry Top-Sider and Merrell brands. Wall Street predicted $711.7 million in revenue.

Chairman and CEO Blake Krueger said in a statement that aside from Sperry and Merrell, other brands that had double-digit revenue increases included Saucony, Keds, Chaco and Cushe.

Wolverine reported double-digit revenue growth in Latin America, Europe, the Middle East and Africa and the Asia Pacific region. North America posted single-digit growth.

The Rockford, Mich., company now foresees full-year adjusted earnings of $2.73 to $2.83 per share. Its prior outlook was for $2.60 to $2.75 per share. In July Wolverine lifted its guidance from $2.50 to $2.65 per share.

The company narrowed its revenue outlook to a range of $2.71 billion to $2.73 billion. Previously it predicted $2.7 billion to $2.78 billion in revenue.

Analysts expect full-year earnings of $2.80 per share on revenue of $2.73 billion.

Its shares rose $1.95, or 3.4 percent, to $59.80 in premarket trading with about 2½ hours ahead of the market opening.

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