Wolverine beats first quarter expectations, reaffirms 2016 outlook
Wolverine World Wide, Inc. on Tuesday reported the financial results for its first quarter of fiscal 2016 ended March 26, 2016.
The company reported revenue of $577.6 million, which exceeded guidance and consensus. Adjusted gross margin on a constant currency basis was 41.6%, an increase of 20 basis points versus the prior year’s comparable period; adjusted operating margin was 9.7%, down 20 basis points from last year but better than company expectations; and adjusted diluted earnings per share was $0.29, which exceeded guidance.
Cash and cash equivalents were $158.2 million and net debt was $712.1 million at quarter end. Wolverine also repurchased 200,000 shares during the quarter at an average price of $17.78 per share.
"The first quarter provided an encouraging start to the year, and we are pleased to have exceeded our expectations for revenue, earnings and inventory management," stated Mike Stornant, Senior Vice President and Chief Financial Officer. "More importantly, the initiatives we have recently implemented to drive product innovation, consumer insight and further operational excellence are moving forward on or ahead of our plans. The investments and actions that we are currently taking are focused on accelerating growth and enhancing our future operating margin and cash flow. We are energized by the opportunity to enhance shareholder value through these initiatives."
Wolverine reaffirmed its outlook for fiscal 2016 and expects its consolidated reported revenue to range between $2.475 billion and $2.575 billion. In addition, the adjusted diluted EPS is expected to range between $1.30 and $1.40 and the inventory is expected to reach normalized levels. The inventory in the first quarter was approximately $6 million lower than the company’s plan.
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