Wolverine Worldwide reported results for its second quarter on Tuesday, falling in line with the company’s expectations despite falling revenue.
Reported revenue of $583.7 million was in line with expectations, the company said in its report, declining 7.4% versus last year. Underlying revenue declined 5.2% versus the prior year. The company’s reported gross margin was 38.8%, compared to 39.1% from the same period last year. Gross margin on a constant currency basis was 39.8%, an increase of 70 basis points versus the prior year.
“We delivered better-than-expected results for the second quarter,” said Wolverine Worldwide Chairman, CEO and President Blake W. Krueger. “Equally important, we continued to drive progress against our key strategic initiatives, which are designed to accelerate growth and improve earnings performance through a relentless focus on the consumer, product innovation, and compelling storytelling.”
He added that while the global retail environment remained volatile, Wolverine’s diverse portfolio of brands—which includes Merrell, Sperry, Wolverine, and Keds—served the company well during the quarter.
“We are pleased with our performance for the second quarter,” said Mike Stornant, Wolverine senior VP and CFO. “Our team’s disciplined execution of our business model allowed us to effectively manage inventory below last year’s level. Looking ahead, we plan to leverage our operational strengths to enhance earnings and drive greater value for our shareholders.”
Wolverine reaffirmed its outlook for the rest of 2016, stating it expects revenue in the range of $2.475 billion to $2.575 billion, a decline in the range of approximately 8 percent to 4.3% on a reported basis and 5 percent to 1 percent on an underlying basis. It also said it expects inventory levels to be “meaningfully lower” than 2015 year-end levels.