Momentum continues to build at Wolverine World Wide Inc., which beat expectations in the third quarter.
The Rockford, Mich.-based company’s third-quarter net income surged 27 percent to $34.1 million, from $26.8 million in the same period a year earlier. Earnings per share for the period ended Sept. 11 were 70 cents, up from an adjusted 62 cents a year ago.
Revenue for the period totaled $320.4 million, an increase of 12 percent.
Analysts, as polled by Yahoo Finance, were looking for 67 cents on revenue of $320.2 million.
“Our standout financial performance was broad-based, with all of our branded business units, including the consumer direct and leathers divisions, contributing to the strong revenue increase,” Blake Krueger, Wolverine’s chairman and CEO, said in a statement. He also noted that the Outdoor, Heritage Brands and Wolverine Footwear groups all delivered strong double-digit increases in operating profit.
Gross margin in the quarter remained flat at 40 percent, while operating expenses rose 9 percent to $80.7 million, driven by planned investments in “key strategic growth initiatives,” which included a 24 percent increase in marketing expenses.
General and administrative expenses were down 5 percent.
“The actions we took last year to position the company for accelerated growth coming out of a recessionary environment are having the intended beneficial impact,” said Krueger.
Wolverine ended the quarter with $95.3 million worth of cash and cash equivalents, up from $78.6 million a year ago, and no significant long-term debt.
The company is increasing its full-year earnings outlook to between $2.04 and $2.08 per share, up from last year’s adjusted diluted EPS of $1.77.