Wolverine's 2Q Results Top Street
Wolverine World Wide (NYSE:WWW) revealed on Tuesday double-digit second-quarter revenue and earnings growth, lifted by strong demand across all brands in its major geographic regions.
The Rockford, Mich.-based footwear, apparel and accessories retailer posted net earnings of $22.96 million, or 48 cents a share, compared with $17.2 million, or 35 cents a share, in the same quarter last year.
The results topped Wall Street views, with analysts polled by Thomson Reuters predicting, on average, a profit of 46 cents a share.
Revenue for the three months ended June 18 was $310.1 million, up 20.1% from $258.2 million a year ago, beating the Streets view of $294.3 million.
Our recent revenue performance clearly demonstrates the broad strength of our portfolio and the benefits of consistent investment in brand-building initiatives, Wolverine CEO Blake Krueger said in a statement. The outstanding financial results in the second quarter were led by strong double-digit revenue increases in all branded groups, most notably in the Outdoor Group and our Merrell brand.
Modest expenses also helped fuel the results, with operating costs making up 28.6% of revenues compared with 29.7% a year ago. Operating expenses were $88.8 million last period, driven by higher variable costs associated with the quarters revenue growth and advertising costs.
The company reaffirmed its full-year revenue estimate in the range of $1.38 billion to $1.42 billion, with earnings between $2.40 and $2.50 a share. Wall Street is looking for earnings of $2.48 a share on sales of $1.4 billion.