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Dec 28, 2019
Wolverine Q4 2019 Earnings Report
Reported highest quarterly growth driven by mid-teens revenue growth from Merrell and Sperry and record adjusted earnings per share.
Key Takeaways
Wolverine World Wide, Inc. reported a 4.8% increase in revenue compared to the prior year and adjusted earnings per share increased 13.5% to $0.59.
Reported revenue increased 4.8% compared to the prior year.
Adjusted diluted earnings per share increased 13.5% to $0.59, compared to $0.52 in the prior year.
The Company generated $206.5 million in cash from operations during the fourth quarter.
The Company repurchased $4.9 million of shares in the quarter at an average price of $26.90 per share.
Revenue by Segment
Forward Guidance
The Company is providing its initial revenue and earnings outlook for the full-year, which is summarized below. The Company's guidance includes the current estimated impact related to the coronavirus for the first half of 2020.
Positive Outlook
- Revenue is expected to be approximately $2.29 billion to $2.34 billion, representing growth of approximately 3.0% at the high-end of the range.
- Constant currency revenue growth is expected to be approximately 3.5% at the high-end of the range.
- Gross margin is expected to be approximately 41.0%.
- Reported operating margin is expected to be approximately 11.0% and adjusted operating margin is expected to be approximately 12.0%.
- Cash flow from operations is expected to be approximately $240 million.
Challenges Ahead
- This outlook includes an estimated revenue impact from the coronavirus of approximately $30 million in the first half of 2020.
- The effective tax rate is expected to be approximately 19.0%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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