Traverse City Record-Eagle

Business

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.

1
Text Only

the BIZ

AP Video
13 Struck by Lightning on Calif. Beach Baseball Hall of Famers Inducted Israel, Hamas Trade Fire Despite Truce in Gaza Italy's Nibali Set to Win First Tour De France Raw: Shipwrecked Concordia Completes Last Voyage Raw: Sea Turtle Hatchlings Emerge From Nest Raw: Massive Dust Storm Covers Phoenix 12-hour Cease-fire in Gaza Fighting Begins Raw: Bolivian Dancers Attempt to Break Record Raw: Israel, Palestine Supporters Rally in US Raw: Air Algerie Flight 5017 Wreckage Virginia Governor Tours Tornado Aftermath Judge Faces Heat Over Offer to Help Migrant Kids Kangaroo Goes Missing in Oklahoma More M17 Bodies Return, Sanctions on Russia Grow Raw: Deadly Tornado Hits Virginia Campground Ohio State Marching Band Chief Fired After Probe Raw: Big Rig Stuck in Illinois Swamp
Hyperlocal Search
Premier Guide
Find a business

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