2nd quarter WWW net nearly double

July 19, 2010
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Wolverine World Wide Inc. reported its second consecutive quarter of record earnings per share, with the adjusted diluted EPS for the quarter posted at 39 cents a share, an increase of 44 percent over the same quarter in 2009.

Revenue for the second quarter, which ended June 19, was $258.2 million, an increase of 4.8 percent over the prior year.

The results exceeded analysts’ expectations, and the Rockford-based shoe manufacturer has now raised its forecast for the year, predicting earnings of $1.98 to $2.04 per share, on revenue ranging from $1.19 billion to $1.22 billion.

Wolverine took a charge of $2.7 million in the second quarter, due to a just-completed restructuring plan prompted by the recession.

Gross margin in the quarter, adjusted for restructuring and related charges in both years, was a record 40.3 percent, compared to prior year gross margin of 37.8 percent, driven by lower closeout sales, lower product costs and year-over-year selling price increases. Reported gross margin in the quarter was 40.2 percent versus 37.3 in the prior year quarter.

Blake W. Krueger, chairman and CEO of Wolverine, said all four major branded operating groups contributed to the earnings performance.

“We believe the quarter's excellent results underscore the company's focus on rewarding our investors with an appropriate balance between near-term earnings growth and long-term investments for the future,” said Don Grimes, CFO.

Wolverine stock (NYSE: WWW) was selling for $22.01 one year ago; Tuesday the closing price was $27.07.

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