Wolverine World Wide Inc. (WWW) reported its earnings for the first quarter of the year, maintaining its guidance for fiscal year 2016 amid a sharp drop in net earnings.
For the first quarter of 2016, net earnings were $17.4 million, down from $40.1 million in the first quarter of 2015. On a per share basis, earnings more than halved to $0.18 from $0.39 last year. Despite this, the company performed better than investors expected, with adjusted earnings per share at $0.29, beating analyst predictions of $0.22 per share.
Underlying revenue declined 6.6 percent, and reported revenue declined 8.5 percent versus the prior year. The company reported revenue of $577.6 million, down from $631.4 million in the previous year, although this topped the $567.47 million Wall Street expected.
Wolverine Worldwide Chairman, CEO and President Blake W. Krueger said actions the company has taken over the last several quarters, including reorganizing its brand groups, adjusting its store fleet, and assigning new leadership helped the company gain traction, giving the brand a “critical competitive advantage” moving forward.
“We exceeded expectations for both revenue and earnings in the first quarter and believe the company is well-positioned to achieve our objectives for the year,” said Krueger in a statement. “I am pleased with our start to 2016, but we remain appropriately cautious given the slow pace of the global recovery and are reaffirming our outlook for the year. We continue to be confident in the initiatives in place to drive profitable growth, and I am excited about the direction of the company moving forward.”
For the rest of the fiscal year, Wolverine reaffirmed its revenue and adjusted diluted earnings per share guidance, saying it expects consolidated reported revenue in the range of $2.475 billion to $2.575 billion, representing an underlying revenue decline in the range of approximately 4.3 percent to 0.5 percent. On a reported basis, a revenue decline in the range of approximately 8 percent to 4.3 percent.