Wolverine World Wide, Inc. (WWW - Free Report) released first-quarter 2019 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. In fact, the top and the bottom line declined year over year.
The quarter’s performance was adversely impacted by weakness in season footwear categories. This marred investors’ sentiments, evident from the stock’s 9.9% decline during the trading session on May 9. Also, this Rockford, MI-based company’s shares lost 12.2%, against the industry’s 0.6% decline in the past three months.
Wolverine’s first-quarter adjusted earnings of 49 cents per share beat the Zacks Consensus Estimate of 47 cents. Notably, this marked the company’s fifth straight quarter of positive earnings surprise. However, the bottom line declined 2% from the prior-year quarter’s levels. Lower margins affected the bottom line.
Revenues totaled $523.4 million that lagged the Zacks Consensus Estimate of $534.2 million. The top line declined 2% year on year, while on a constant-currency (cc) basis the metric inched down 0.9%. Results were impacted by late spring arrival and slow seasonal footwear demand, especially boat shoes.
Gross profit amounted to $220.2 million, down nearly 3.3% year over year. Gross margin amounted to 42.1%, which contracted 60 basis points (bps) year on year due to lower revenues from high-margin businesses as well as unfavorable-product and business mix. Also, adjusted operating profit went down 10.9% to reach $57.2 million. Adjusted operating margin slipped 110 bps to 10.9%.
Wolverine World Wide, Inc. Price, Consensus and EPS Surprise