Wolverine Worldwide Q3 revenues drop 23.7 percent

Third quarter revenue of 527.7 million dollars declined 23.7 percent at Wolverine Worldwide versus the prior year and declined 24.7 percent on a constant currency basis.

The company said in a release that revenue from the ongoing business was 519.5 million dollars and declined 21.1 percent on a constant currency basis.

“In the third quarter, we achieved several critical milestones as we took decisive action to stabilise and transform the company, while delivering revenue and earnings in-line with our expectations,” said Chris Hufnagel, president and CEO of Wolverine Worldwide.

The company's international revenue of 229 million dollars was down 24.4 percent and international revenue from the ongoing business of 221.8 million dollars was down 22.3 percent or 24.6 percent on a constant currency basis.

Direct-to-consumer revenue of 136.6 million dollars was down 14.5 percent and down 12.8 percent for the ongoing business compared to the prior year. Gross margin for the quarter was 40.8 percent.

For the full year ahead, the company said, revenue from our ongoing business is expected to be approximately 2.19 billion dollars to 2.20 billion dollars, a decline of approximately 13 percent versus the prior year.

Gross margin is expected to be approximately 38.7 percent, and adjusted gross margin is expected to be approximately 39.1 percent. Diluted earnings per share are expected to be between 35 cents and 40 cents and adjusted diluted earnings per share are expected to be between 5 cents and 10 cents.

“While market conditions remain challenging, we're taking the necessary steps to reinvigorate our brands and position the Company for profitable growth as conditions improve,” added Hufnagel.