Wolverine World Wide Profit Tops Estimates; Backs Full-year Earnings View

(RTTNews) - Footwear and apparel maker Wolverine World Wide, Inc. (WWW) Tuesday reported higher third-quarter profit that exceeded analysts' expectations on higher margins. Revenues, however, edged down from last year, and came below Wall Street expectations.

The company backed its outlook for adjusted earnings for the full year, while lowering the revenue forecast. For the third quarter ended September 6, the company's net earnings increased to $56.7 million or $0.57 per share from $53.4 million or $0.54 per share in the previous year.

Excluding acquisition-related integration and restructuring costs, earnings were $0.63, while the company posted $0.58 per share last year.

On average, 15 analysts polled by Thomson Reuters expected the company to earn $0.59 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter edged down 0.8 percent to $711.1 million from $716.6 million a year earlier, and came in below analysts' estimate of $720.37 million.

Heritage Group revenues increased 4.6 percent, revenues from Performance Group were up 2.2 percent, while Lifestyle Group witnessed a revenue decline of 6.7 percent. Operating margin improved 30 basis points to 12.3 percent from 12.0 percent a year ago. Adjusted operating margin expanded 70 basis points to 13.8 percent.

Blake Krueger, chairman and chief executive officer of the company said, "Highlighting the strength of our diverse global business model, strong revenue results across multiple geographies, particularly Asia Pacific and EMEA, offset what continues to be a somewhat tepid retail environment in the U.S."

For the full year, the company still expects earnings of $1.32 to $1.38 per share and adjusted earnings of $1.57 to $1.63 per share.

The company, however, lowered its annual revenue outlook slightly to $2.745 billion from the $2.775 billion previously projected. Analysts expect the company to report annual earnings of $1.59 per share, on revenues of $2.77 billion.

Looking ahead, Krueger said, "We still expect 2014 to be another year of record revenue and record earnings for the Company, driven by the global appeal of our brand portfolio and our disciplined operations."

WWW closed Monday's trading at $24.65 on the NYSE.