WWW Beats Analyst Estimates in Q1

After posting better-than-expected first-quarter results on Wednesday, Wolverine World Wide Inc. reaffirmed its guidance for the year.

Impairment charges of $14.5 million, related to the firm’s restructuring, hit Wolverine’s net income in the first quarter, which dropped 56 percent to $10.5 million, or 21 cents a diluted share. Adjusted for restructuring costs, the firm reported earnings of 41 cents a share, handily beating analyst estimates on Yahoo Finance for 31 cents.

Revenues for the first quarter were $255.3 million, down 11 percent, from $288.3 million during the same period in 2008.

The Wolverine and Patagonia footwear brands saw earnings increase, while the Hush Puppies Group, parent of Wolverine’s new Cushe acquisition, and the Outdoor Group, which includes Merrell, posted declines.

Wolverine’s restructuring plan, which was put into place in January, included the elimination of 10 percent of its workforce, or 450 jobs, as well as the merging of distribution operations and the closure of a tannery in its hometown of Rockford, Mich. The company expects to save $17 million to $19 million annually, at a cost of $31 to $36 million (before taxes) recorded throughout 2009.

Wolverine projected earnings of $1.74 to $1.97 a share in 2009, adjusted 12 cents to 15 cents for foreign exchange, and 12 cents for increased pension expenses. Wolverine also reaffirmed its reported revenue to be in the range of $1.07 billion to $1.15 billion.

The company’s stock closed up 15.3 percent at $21.79 at the end of trading on Wednesday.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s