Restructuring charges took a toll on Wolverine World Wide Inc.’s bottom line in the second quarter, but strong revenue growth prompted the company to raise its full-year outlook.
Wolverine on Wednesday reported a 53 percent drop in second-quarter profits to $7.9 million, or 16 cents a diluted share, for the 12 weeks ended June 20. Those results compare with a net income of $16.8 million, or 33 cents a diluted share, for the year-ago period. However, adjusted for one-time restructuring charges of $7.9 million, the company’s second-quarter earnings registered at 27 cents a share, in line with estimates from analysts polled by Yahoo Finance.
Revenues for the company totaled $246.4 million for the second quarter, down 8 percent from the same period a year prior.
For the first half or 2009, net earnings were $18.4 million, or 38 cents a diluted share, versus $40.5 million, or 79 cents, from the first half of 2008. Revenues were $501.8 million, down 10 percent from $555.6 in the year-ago period.
“We are pleased with our performance in the second quarter and the first half, which reflects the sell-through of our brands at retail and our proactive approach to managing our asset base and SG&A infrastructure,” said Blake Krueger, Wolverine’s CEO and president, during a conference call.
The company also raised its full-year earnings guidance to range from $1.07 to $1.25 a diluted share. Including restructuring adjustments, earnings per share will range from $1.55 to $1.73 a share, up from former estimates of $1.50 to $1.70 a share. Reported revenue will range from $1.07 billion to $1.12 billion, according to the company, or $1.12 billion to $1.17 billion adjusted for the foreign-exchange impact.