Wolverine Lifts Full-year Adj. EPS View Yet Again As Q3 Results Top Estimates

(RTTNews) - Wolverine World Wide Inc. (WWW), a manufacturer of work-related footwear and apparel, Tuesday lifted its full-year adjusted earnings per share outlook once again, after reporting a profit for the third quarter that climbed from last year and topped analysts' expectations. The firm slightly raised the lower end of its revenues guidance range, but cut the upper end of view.

While reporting its second-quarter results in July, the company had raised its full-year earnings per share guidance.

The recent-quarter results were driven by more than 100 percent growth in revenues, with double-digit revenue growth across many of its brands including Sperry Top-Sider and Merrell.

Blake Krueger, chairman and chief executive officer of the company stated, "The power of the Company's 16-brand portfolio, combined with strong execution of growth strategies by our team, led to an outstanding quarter."

The firm saw double-digit revenue growth across many of its brands including Merrell, Sperry Top-Sider, Saucony, Keds, Chaco and Cushe.

In the third quarter, net earnings attributable to the company climbed to $54.4 million or $1.08 per share from $32.7 million or $0.66 per share in the prior year.

The company said the latest-quarter included a full 12 weeks contribution from its October 2012 acquisition of the Sperry Top-Sider, Saucony, Stride Rite, and Keds brands, or the PLG Acquisition.

Excluding acquisition-related transaction and integration expenses in both years, earnings per share were $1.16, while the company posted $0.72 per share a year earlier.

On average, 14 analysts polled by Thomson Reuters expected the company to earn $1.02 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter jumped 103.0 percent to $716.7 million from $353.1 million in the same quarter last year, which also came slightly above analysts' estimate of $712.94 million.

Revenue growth was 9.0 percent compared to prior-year pro forma revenue.

Revenues from Lifestyle Group surged 678.4 percent, Performance Group revenues climbed 67 percent, and Heritage Group revenues edged up 0.8 percent from last year.

Gross margin improved 70 basis points to 39.9 percent driven mainly by favorable channel mix, partially offset by foreign exchange contract losses.

For the full year, the company now expects adjusted earnings per share to be in the range of $2.73 to $2.83 per share, up from the previous outlook of $2.60 to $2.75 per share.

Revenues for the year are now anticipated to be between $2.71 billion and $2.73 billion, representing growth in the range of 6.4 to 7.1 percent compared to prior year pro forma revenue of $2.548 billion. Earlier, the company forecast revenues of $2.7 billion to $2.775 billion.

Analysts expect the company to report earnings of $2.80 per share, on revenues of $2.73 billion for the year.

WWW closed Monday's regular trading at $57.85 on the NYSE. In the pre-market activity, the shares are up 1.73 percent.