Wolverine World Wide Inc. soundly beat analysts’ expectations early Thursday, reporting a second-quarter net income that more than doubled from the same period last year.
For the 12 weeks ended June 19, Wolverine earned $17.2 million, or 35 cents a share, compared with $7.9 million, or 16 cents, in the year-ago quarter.
Excluding restructuring costs, Wolverine’s net income was 39 cents a share. That beats the average of 33 cents that analysts polled by Thomson Reuters had expected.
Wolverine, which owns Merrell, Sebago, Hush Puppies and other brands, said sales grew across all categories. The company also raised its full-year guidance to between $1.98 and $2.04 a share on revenues of $1.19 billion to $1.22 billion, up from earnings per share of $1.92 and $2.00 on revenues of $1.16 billion to $1.19 billion.
In a conference call with analysts Thursday morning, Wolverine CEO Blake Krueger said Merrell Outventure, the firm’s outdoor performance category, continued “to generate excellent growth and solidified the brand’s position as the leader [in] the performance outdoor segment.”
Krueger added, “Our retail and e-commerce businesses also delivered impressive results. The company’s exceptional year-to-date earnings performance is a clear testament to the power of our global business model.”
Sales for the quarter were $258.2 million, up 5 percent from the previous corresponding quarter. Growth from the portfolio was partially offset by expected lower closeout sales from several brands, said Don Grimes, Wolverine’s SVP and CFO.
The firm’s cash and cash equivalents stood at $110.1 million, up 40 percent from the previous corresponding quarter.
Wolverine shares opened high on Thursday, at $27.89, but quickly fell 3 percent to $26.30.