Wolverine Worldwide on track with key acquisition from Collective Brands
ROCKFORD, Mich. — Wolverine Worldwide reported slight revenue growth as it looks to build its portfolio with the acquisition of the Performance and Lifestyle Group from Collective Brands.
Wolverine Worldwide reported quarterly revenue of $312.7 million, an increase of 0.8% compared with the prior year's second quarter when revenue grew over 20%.
Reported diluted earnings per share in the quarter were 42 cents, compared with prior year's earnings per share of 48 cents.
"We are pleased that despite the softness in certain global markets, most notably Europe, we remain on track to deliver another year of record financial results," said Blake Krueger, chairman and CEO. "Our diverse brand portfolio and a business model that spans geographies and distribution channels help to mitigate risk and smooth out a choppy global retail environment. Our U.S. business had a solid quarter, and the company's consumer direct business was also a bright spot, posting a strong double-digit revenue increase from both brick and mortar locations and the e-commerce channel. Our outdoor group, consisting of Merrell, Chaco and Patagonia Footwear, delivered a solid revenue increase in the quarter."
Based on expectations of strong at-once orders in the second half of the fiscal year, primarily the fourth quarter, the company is reaffirming its full-year revenue guidance in a range of $1.46 billion to $1.50 billion, representing full-year growth of 3.6% to 6.4% compared to the prior year. The company is also maintaining its full-year earnings per share guidance in a range of $2.70 to $2.80, representing growth of 8.9% to 12.9%.
The company's guidance reflects its expectations prior to any costs or benefits relating to the pending Performance and Lifestyle Group acquisition from Collective Brands and, as such, does not include the $4.9 million of non-recurring expenses recorded in the second quarter. On a reported basis, the company expects full-year earnings per share to range from $2.64 to $2.74 (6.5% to 10.5% growth over the prior year), which includes the year-to-date impact of the PLG acquisition-related expenses.
Krueger concluded, "Recent feedback from key retailers reinforces our positive outlook for the remainder of 2012, and we fully expect to deliver another year of record financial performance. We are tremendously excited about adding the Sperry Top-Sider, Saucony, Stride Rite and Keds brands and team members to our already powerful portfolio of global lifestyle brands. We remain on track to close the transaction in late summer to early fall."
Wolverine World Wide's portfolio of brands includes: Bates, Chaco, Cushe, Hush Puppies, HYTEST, Merrell, Sebago, Soft Style and Wolverine. The Company also is the footwear licensee of popular brands including CAT, Harley-Davidson and Patagonia.