Wolverine Worldwide reported results for its third quarter on Tuesday, reaffirming its outlook for the remainder of the year with results largely falling in line with expectations.
Shares of Wolverine, which owns footwear brands like Keds and Sperry, were down more than 5 percent Tuesday morning following the news. The company reported revenue of $603.7 million for the quarter, down 11.1% from the year prior. This came in below Wall Street forecasts, which had predicted revenue of roughly $631 million.
The news was slightly better in EPS terms, where Wolverine just topped market expectations. Diluted earnings per share of 49 cents was slightly above the 48 cents analysts had predicted.
Inventory at the end of the quarter was down 7.6% compared to the year prior, in line with the company’s promise to have “meaningfully lower” inventory than at the end of fiscal 2015.
Looking ahead, the company said it plans to review its portfolio to come up with “strategic alternatives for some areas of the business,” although further specifics weren’t provided.
“While the macro environment remains challenging, we are pleased with our ability to drive operating margin expansion and earnings per share growth in the quarter,” stated Mike Stornant, Wolverine senior VP and CFO. “We effectively managed inventory and expenses, generated very strong cash flow, and improved our working capital position, all of which we expect to continue into the fourth quarter.”
Wolverine maintained its full-year revenue outlook of $2.475 billion to $2.575 billion, although it said it expects reported revenue at the lower end of that range. In EPS terms, the company expects diluted shares in the range of $1.02 to $1.12 for the year.