US: Wolverine Q2 earnings halved by restructuring
Wolverine World Wide has reported second quarter net earnings of US$7.9m amid restructuring, down 53% from $16.8m in the comparable period last year, despite success for its Merrell brand in the US.
Reported revenue in the second quarter was $246.4m, a decline of 7.8% versus the prior year. The company said adjusted revenue declined only 3.1% in the quarter.
It reported "excellent" performance in the US, driven primarily by the Merrell brand and Chaco brand acquisistion. This was offset by challenging trading conditions in many major global markets though.
During the quarter the company continued to implement its 2009 strategic restructuring plan for efficiencies across the business.Non-recurring restructuring and related charges of $7.9m were recorded in the quarter.
"We are pleased with our second quarter results, which were driven by our ability to grow proven brands and extend the global reach of new brands," said Blake W Krueger, the company's CEO and president.
"During the quarter, we achieved a double-digit increase in our Merrell business in the US and got off to a strong start with the Chaco brand. Company revenue was above our internal plan for the quarter, which helped contribute to solid earnings results."
The company's operating expenses decreased 6.0% from the prior year. Inventory at the end of the second quarter was up 6.9% compared to the prior year, the company added.
Wolverine raised its 2009 earnings guidance, and now expects earnings in the range of $1.55 to $1.73 per share, up from previous guidance of $1.50 to $1.70 per share.
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Wolverine World Wide has announced the appointment of Blake W Krueger as chairman of the board of directors effective 1 January....
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