• Q3 earnings climb 6.4%
  • Gross margin widens to 40%
  • Sales decline to $711.1m
Wolverine Worldwide has upped its full-year earnings outlook

Wolverine Worldwide has upped its full-year earnings outlook

US clothing and footwear business Wolverine Worldwide has upped its full-year earnings outlook after booking an increase in third-quarter earnings and sales.

For the three months ended 6 September, net profit amounted to US$57.9m, a 6.4% increase on earnings of $54.4m a year earlier.

Gross margin widened to 40% compared to the prior year's gross margin of 39.9%.

Consolidated revenue, however, declined slightly to $711.1m, as mid-single digit growth from the Heritage Group and low-single digit growth from the Performance Group were offset by a mid-single digit decline in the Lifestyle Group.

"Highlighting the strength of our diverse global business model, strong revenue results across multiple geographies, particularly Asia Pacific and EMEA, offset what continues to be a somewhat tepid retail environment in the US," said CEO Blake Krueger. "We still expect 2014 to be another year of record revenue and record earnings for the company, driven by the global appeal of our brand portfolio and our disciplined operations."

Based on the results and expectations for the balance of the year, Wolverine adjusted its outlook for full-year consolidated revenue to around $2.74bn, representing growth of around 2% on last year's revenue of $2.69bn.

The company reaffirmed its adjusted diluted EPS estimate of $1.57 to $1.63 - growth of 10% to 14% - compared diluted EPS of $1.43 last year. On a reported basis, diluted EPS is expected in the range of $1.32 to $1.38.