Manufacturing

Wolverine's 3Q revenue lower than last year's

But recent acquisition will bolster next quarter.

October 16, 2012
| By Pete Daly |
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Wolverine's 3Q revenue lower than last year's
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Third quarter results announced by Wolverine Worldwide this morning show revenues coming in slightly lower than last year’s third quarter, which the Rockford-based footwear conglomerate says reflects “difficult macroeconomic and retail conditions in Europe, mitigated by strength in the United States.” Foreign exchange rates also reduced reported revenue by more than $5 million.

Revenue for the quarter was $353.1 million, 2.4 percent lower than the prior-year quarter — although revenue one year ago was growing by about 13 percent as much of the world was recovering from the recession.

Earnings in the third quarter were 72 cents per share, compared to prior-year earnings of 82 cents. However, the current earnings were adjusted to 66 cents, to reflect a 6 cent cost entailed with the acquisition of the Performance + Lifestyle Group of Collective Brands Inc., which was finalized Oct. 9. Due to the expansion, perhaps the largest ever for a Grand Rapids-area business, Wolverine went from a $1.4 billion company to a $5.5 billion company.

Wolverine said today it is now “the largest footwear company in the world, outside of the pure athletic (shoe) companies.”

“In light of the continued macroeconomic challenges in Europe, we are pleased that the company’s core business, even without contributions from the just-acquired Sperry Top-Sider, Stride Rite, Saucony and Keds brands, is on track to deliver another year of record revenue,” said Blake W. Krueger, chairman and CEO. “Importantly, many of our brands posted strong revenue growth during the quarter, despite the headwinds in Europe.”

Wolverine’s U.S. sales had another very solid quarter, added Krueger, with increases from virtually all its brands and double-digit increases from Hush Puppies, Caterpillar Footwear and Sebago. Several brands also posted double-digit increases in third-party international markets, including Wolverine, Caterpillar Footwear, Sebago and Harley-Davidson Footwear. The company’s leather business and consumer-direct business also delivered double-digit revenue growth.

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