Wolverine Worldwide Reported That It Expects Earnings for 2013

Wolverine Worldwide reported that it expects earnings for 2013 to come in ahead of previous guidance although revenues would fall short.

The year ended Dec. 28 included a full 52-week contribution from the company's October 2012 acquisition of the Sperry Top-Sider, Saucony, Stride Rite, and Keds brands (the "PLG Acquisition").  The company expects to report full fiscal year 2013 results on Feb. 18, 2014.

On a preliminary unaudited basis, for full fiscal year 2013 ended Dec. 28, 2013, the company expects:

Revenue to approximate $2.69 billion, representing growth of 5.5 percent versus prior year pro forma revenue of $2.55 billion and growth of 64.0 percent versus prior year reported revenue of $1.64 billion. In reporting its third-quarter results on Oct. 8, the company predicted adjusted full-year revenue guidance in the range of $2.71 to $2.73 billion;

Adjusted fully diluted earnings excluding transaction and integration expenses related to the PLG Acquisition, restructuring charges related to the company's owned manufacturing operations, and expenses related to the October 2013 refinancing at the high end of the previous earnings guidance of $1.37 to $1.42 per share. Reported fully diluted earnings at the high end of the previous earnings guidance of $0.85 to $0.90 per share. Consolidated inventories at year end to be materially lower than at the end of fiscal year 2012.

Wolverine stressed that the results are preliminary.

"Fiscal 2013 included several noteworthy accomplishments of which we are exceptionally proud," said Blake W. Krueger, chairman and CEO. "Our revenue and earnings are expected to reach record levels, we successfully integrated and grew our newly acquired brands, and the performance of Merrell, our largest brand, strengthened as the year progressed. In the quarter, excellent double-digit revenue growth from Hush Puppies, CAT Footwear, and Keds and solid mid-single digit revenue growth from Merrell and Saucony were partially offset by softness from Sperry Top-Sider and Stride Rite.  Sperry's performance, in particular, was impacted by fall weather conditions that heavily favored boot offerings versus casual product. Geographically, double-digit revenue growth in each of the Asia Pacific and Latin America regions was offset by flat revenue growth in the U.S., our most significant market, and the EMEA region.  We are pleased that our multi-brand, multi-geography business model was able to deliver record full-year earnings at the high end of our previous guidance."

Don Grimes, the company's SVP and CFO, stated "We are pleased with the momentum of our business as we move into 2014.  In light of the current tepid environment for consumer soft goods in the U.S., our preliminary outlook for fiscal 2014 is for full-year revenue growth in the mid-single digit range, with year-over-year revenue growth accelerating over the course of the year.  Consistent with the company's long track record of delivering earnings growth in excess of revenue growth, we expect full-year diluted earnings per share to grow at a solid double-digit rate." 

Concluded Krueger, "We remain excited about our prospects for 2014 and beyond, and we expect to capitalize on our strong innovation platforms, powerful brand percents and well-developed international infrastructure to drive the global expansion of our 16-brand portfolio.  We remain committed to our strategies, which we believe position our company to deliver increased value for our shareholders."

The company provided its update because it is scheduled to present at the 16th Annual ICR XChange conference held at the Grand Lakes Resort in Orlando, FL on Jan. 14.