Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Wolverine (WWW) Posts Record Revenue for Q2, but Misses Projections

A year after posting a 20-percent increase in revenue, Wolverine Worldwide (WWW) boasted a new record for quarterly revenue when it announced its earnings report for the second quarter that ended June 16.

Wolverine World Wide, Inc. (NYSE:WWW)

Early Tuesday morning, Wolverine reported second-quarter earnings of $312.7 million, up 0.8 percent over the same period in 2011, when revenue shot up 20 percent. However, that revenue mark was $2 million short of analysts’ projections. Foreign exchange stunted the number by nearly $4 million, according to a press releases by the company. Reported per-share earnings were 42 cents, down from 48 cents a year earlier. Gross margin decreased to 37.8 percent from the prior year and inventory was trimmed by 1.3 percent. Wolverine shares are up $2.45, or 6.4%, today. Scopus Asset Management, SAC Capital, and Magnetar Capital are among the hedge funds with large WWW positions.

Wolverine’s pending acquisition of Performance + Lifestyle Group (PLG) has affected stock price lately, and once that deal is finalized, the company is anticipating even more growth.

“We are pleased that despite the softness in certain global markets, most notably Europe, we remain on track to deliver another year of record financial results,” said Blake W. Krueger, Chairman and Chief Executive Officer, in a release.  “Our diverse brand portfolio and a business model that spans geographies and distribution channels help to mitigate risk and smooth out a choppy global retail environment.  Our U.S. business had a solid quarter, and the Company’s consumer direct business was also a bright spot, posting a strong double-digit revenue increase from both brick and mortar locations and the eCommerce channel. Our Outdoor Group, consisting of Merrell, Chaco and Patagonia Footwear, delivered a solid revenue increase in the quarter.”

In the wake of this report, Wolverine announced no changes in its full-year guidance, reaffirming its revenue at $1.46B to $1.5B, which would reflect growth of 3.6 to 6.4 percent over 2011, and the earnings-per-share was reaffirmed at $2.70 to $2.80 (growth of nearly 9 to 13 percent).

This should be very good news for Chuck Royce’s Royce & Associates and for David Dreman’s Dreman Value Management. These funds were invested to the tune of $118 million combined at the end of March – before this earning report and prior to the news of the planned PLG acquisition. They should be two funds that likely benefit from such record-setting news out of Michigan.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!