Wolverine World Wide, Inc. (WWW) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $1.90 million, or $ 0.02 a share in the quarter, against a net profit of $11.60 million, or $0.12 a share in the last year period. On an adjusted basis, profit per share for the quarter was stable at $0.33, when compared with the last year period. Revenue during the quarter went down marginally by 2.88 percent to $729.60 million from $751.20 million in the previous year period. Gross margin for the quarter expanded 39 basis points over the previous year period to 36.62 percent. Total expenses were 97.93 percent of quarterly revenues, down from 98.14 percent for the same period last year. This has led to an improvement of 21 basis points in operating margin to 2.07 percent.
Operating income for the quarter was $15.10 million, compared with $14 million in the previous year period.
However, the adjusted operating income for the quarter stood at $53.50 million compared to $44.10 million in the prior year period. At the same time, adjusted operating margin improved 146 basis points in the quarter to 7.33 percent from 5.87 percent in the last year period.
"Our diverse portfolio of global brands, exceptional operating platform, and strong business model continue to fuel a powerful earnings engine, even when faced with the current retail environment," said Blake W. Krueger, Wolverine Worldwide's chairman, chief executive officer and president. “Revenue finished in line with our original outlook entering the year, and we delivered solid adjusted earnings.
For fiscal year 2017, Wolverine World Wide, Inc. projects revenue to be in the range of $2,270 million to $2,370 million and projects adjusted revenue to be in the range of $2,300 million to $2,400 million. The company projects operating income to be in the range of $180 million to $202 million and projects adjusted operating income to be in the range of $224 million to $246 million. It forecasts diluted earnings per share to be in the range of $1.19 to $1.29 and forecasts diluted earnings per share to be in the range of $1.45 to $1.55 on adjusted basis.
Operating cash flow improves significantly
Wolverine World Wide, Inc. has generated cash of $296.30 million from operating activities during the year, up 37.49 percent or $80.80 million, when compared with the last year. The company has spent $38.40 million cash to meet investing activities during the year as against cash outgo of $50 million in the last year.
The company has spent $79.50 million cash to carry out financing activities during the year as against cash outgo of $187.30 million in the last year period.
Cash and cash equivalents stood at $369.80 million as on Dec. 31, 2016, up 90.52 percent or $175.70 million from $194.10 million on Jan. 02, 2016.
Debt moves up marginally
Wolverine World Wide, Inc. has witnessed an increase in total debt over the last one year. It stood at $820.70 million as on Dec. 31, 2016, up 1.35 percent or $10.90 million from $809.80 million on Jan. 02, 2016. Interest coverage ratio improved to 1.53 for the quarter from 1.31 for the same period last year.
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