REPORTWolverine Worldwide, for the third quarter ended September 12, 2015 said that adjusted diluted earnings per share were 0.48 dollar, in line with guidance, compared to an adjusted 0.63 dollar per share in the prior year. Reported diluted earnings per share were 0.44 dollar, compared to 0.57 dollar per share in the prior year.
Adjusted revenue grew 0.7 percent after adjusting for the impact of foreign exchange, retail store closures and termination of the Patagonia license agreement. On a reported basis, revenue was 678.9 million dollars, a decline of 4.5 percent versus the prior year.
“We again delivered earnings in line with our expectations for the quarter, while continuing to fuel our long-term strategic investments,” said Blake W. Krueger, Wolverine Worldwide's Chairman, Chief Executive Officer and President.
Foreign exchange impact on Q3
Gross margin was 40 percent, better than projected and flat with the prior year's gross margin despite challenging foreign exchange headwinds. Adjusted operating margin of 11.9 percent, the company said, was better than expected but 190 basis points lower than the prior year, due primarily to planned incremental brand investment and higher pension expense. Reported operating margin was 11.2 percent.
“We are pleased to deliver a strong earnings performance in light of softer-than-expected revenue for the quarter,” stated Mike Stornant, Senior Vice President and Chief Financial Officer, adding, “The Company also delivered better-than-expected gross margin in the quarter, despite very challenging foreign currency headwinds in many key international markets.”
Update fiscal 2015 guidance
The company says that certain trends and conditions experienced during the third quarter are now expected to continue and to put pressure on its top line performance during the fourth quarter of fiscal 2015. As a result, the company, after adjusting for the estimated impact of foreign exchange, retail store closures and the termination of the Patagonia license agreement, expects revenue growth in the range of approximately 2.1 percent to 2.8 percent for the full year, versus the prior year. Reported revenue is expected in the range of 2.69 billion dollars to 2.71 billion dollars, representing a decline in the range of approximately 2.6 percent to 1.8 percent versus the prior year.
Adjusted diluted earnings per share is expected to be in the range of 1.44 dollars to 1.47 dollars. Constant currency adjusted diluted earnings per share is expected in the range of 1.57 dollars to 1.60 dollars.