Wolverine Worldwide Q2 revenues down 7.4 percent

Reported revenue at Wolverine Worldwide for the second quarter ended June 18, 2016 was 583.7 million dollars, a decline of 7.4 percent versus the prior year. Underlying revenue declined 5.2 percent.

“We delivered better-than-expected results for the second quarter,” said Blake W. Krueger, Wolverine Worldwide's Chairman, CEO and President, adding, “While the global retail environment continues to be volatile, our diversified business model - built around an industry-leading portfolio of brands - served us well in the quarter.”

Adjusted diluted earnings witness a rise

While reported gross margin was 38.8 percent, compared to 39.1 percent in the prior year, gross margin on a constant currency basis was 39.8 percent, an increase of 70 basis points versus the prior year. Reported operating margin was 7.2 percent compared to 7.6 percent in the prior year. Adjusted operating margin on a constant currency basis was 8.4 percent, up 30 basis points versus the prior year's adjusted operating margin.

Reported diluted earnings per share were 0.24 dollar in the current and prior year quarter. Adjusted diluted earnings per share were 0.25 dollar and on a constant currency basis were 0.30 dollar, compared to 0.27 dollar in the prior year.

Outlook for FY16 reflects decline in revenues

The company is reaffirming its revenue and reported and adjusted diluted earnings per share outlook for fiscal 2016, as well as its expectation for inventory levels. Consolidated reported revenue is expected to be in the range of 2.475 billion dollars to 2.575 billion dollars, a decline in the range of approximately 8 percent to 4.3 percent on a reported basis and 5 percent to 1 percent on an underlying basis.

Reported diluted earnings per share are expected to be in the range of 1.16 dollars to 1.26 dollars. Adjusted diluted earnings per share are anticipated to be in the range of 1.30 dollars to 1.40 dollars and on a constant currency basis, adjusted earnings are expected to be in the range of 1.48 dollars to 1.58 dollars.

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