Wolverine posts record 2Q revenue boosted by Merrell, outdoor footwear - SNEWS

Wolverine posts record 2Q revenue boosted by Merrell, outdoor footwear

Wolverine Worldwide posted a 20-percent increase in revenue for its fiscal second quarter, boosted by strong sales of its outdoor footwear Merrell, Chaco and Patagonia Footwear brands.
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Wolverine Worldwide (NYSE: WWW) reported 20-percent revenue growth for its fiscal second quarter led by 30-percent growth from its outdoor footwear brands, including Merrell, Chaco and Patagonia Footwear.

The Rockford, Mich.-based footwear company reported record revenue of $310.1 million for its fiscal second quarter, ended June 18, 2011 – up 20.1 percent from the same period a year ago. Net income for the quarter rose to $23.96 million, or $0.48 per diluted share, compared to $17.2 million, or $0.35 per diluted share a year ago.

Wolverine’s outdoor group led the way, posting quarterly revenue of $127.3 million – up 30 percent from the same period a year ago. That was followed by 17.5-percent growth from the company’s lifestyle group (Hush Puppies, Sebago, Cushe and SoftStyle) to $41.5 million, and 15-percent growth from its heritage group (Wolverine, Caterpillar Footwear, Bates, HyTest and Harley Davidson Footwear) to $102.9 million.

It was the second straight quarter of double-digit percentage growth for Wolverine – up 16 percent in the first quarter – but the company kept it’s future guidance steady, including reaffirming its full year-revenue range estimate between $1.38 billion to $1.42 billion, representing growth of 10.5 percent to 13.7 percent.

The stay in future estimates, despite continued stronger growth, disappointed investors however, sending Wolverine’s stock price down nearly 7 percent to $39.73. The stock is up 34 percent so far in 2011.

-- Compiled by David Clucas

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