Traverse City Record-Eagle


February 20, 2013

Wolverine's aquisition results in a 4Q loss

ROCKFORD (AP) — Footwear and clothing company Wolverine Worldwide moved to a loss in its fourth quarter, mostly because of costs for its acquisition of shoe brands including Sperry Top-Sider.

The company, whose brands include Hush Puppies and Merrell, lost $3.7 million, or 8 cents per share, for the period ended Dec. 29. That compares with a profit of $23 million, or 47 cents per share, a year ago.

The current quarter included more than $24 million in transaction and integration costs and $3.8 million for an acquisition-related interest expense. Wolverine Worldwide completed its $1.25 billion buyout of the performance and lifestyle group from Collection Brands Inc. during the quarter. The performance and lifestyle group includes the Sperry Top-Sider, Saucony, Stride Ride and Keds brands.

Removing transaction and integration costs, earnings were 48 cents per share.

Analysts predicted earnings of 16 cents per share, according to a FactSet survey.

Wolverine said Tuesday that its performance was helped by better-than-expected results from its existing business and the performance and lifestyle group acquisition from Collective Brands, as well as lower-than-expected acquisition-related costs.

The company had forecast quarterly earnings of 12 cents to 22 cents per share.

Selling, general and administrative expenses climbed to $207.2 million from $119.2 million.

Revenue increased 60 percent to $652.2 million from $406.5 million. Wall Street forecast $651.3 million.

Cost of products sold jumped to $408.4 million from $256.3 million.

For the year, Wolverine Worldwide Inc. earned $80.7 million, or $1.63 per share. That compares with a profit of $123.3 million, or $2.48 per share, in the prior year.

Adjusted earnings were $2.29 per share.

Annual revenue rose 16 percent to $1.64 billion from $1.41 billion.

Going forward, the Rockford, Mich., company foresees fiscal 2013 adjusted earnings between $2.50 and $2.65 per share. Revenue is expected in a range of $2.7 billion to $2.8 billion.

Analysts expect earnings of $2.86 per share on revenue of $2.72 billion.

Text Only

the BIZ

AP Video
Power to Be Restored After Wash. Wildfire Crashed Air Algerie Plane Found in Mali Israel Mulls Ceasefire Amid Gaza Offensive In Case of Fire, Oxygen Masks for Pets Mobile App Gives Tour of Battle of Atlanta Sites Anti-violence Advocate Killed, but Not Silenced. Dempsey: Putin May Light Fire and Lose Control Arizona Prison Chief: Execution Wasn't Botched Calif. Police Investigate Peacock Shooting Death Raw: Protesters, Soldiers Clash in West Bank Police: Doctor Who Shot Gunman 'Saved Lives' 'Modern Family' Star on Gay Athletes Coming Out MN Twins Debut Beer Vending Machine DA: Pa. Doctor Fired Back at Hospital Gunman Raw: Iowa Police Dash Cam Shows Wild Chase
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide