Wolverine World Wide, Inc. (WWW) has reported a 4.02 percent fall in profit for the quarter ended Apr. 01, 2017. The company has earned $16.70 million, or $0.17 a share in the quarter, compared with $17.40 million, or $0.18 a share for the same period last year. On an adjusted basis, earnings per share were at $0.37 for the quarter compared with $0.31 in the same period last year.

Revenue during the quarter went up marginally by 2.37 percent to $591.30 million from $577.60 million in the previous year period. Gross margin for the quarter expanded 8 basis points over the previous year period to 39.69 percent. Total expenses were 94.49 percent of quarterly revenues, up from 94.11 percent for the same period last year. That has resulted in a contraction of 37 basis points in operating margin to 5.51 percent.

Operating income for the quarter was $32.60 million, compared with $34 million in the previous year period.

However, the adjusted operating income for the quarter stood at $65.50 million compared to $52 million in the prior year period. At the same time, adjusted operating margin improved 207 basis points in the quarter to 11.08 percent from 9 percent in the last year period.

"We had a solid start to the year, highlighted by first-quarter revenue and earnings that surpassed expectations and strong progress toward our holistic, enterprise-wide strategic transformation initiative, the WOLVERINE WAY FORWARD," said Blake W. Krueger, Wolverine Worldwide's chairman and chief executive officer and president. "The transformation of our business is well underway with our strategy focused on elevating our most powerful brands with consumers, delivering continuous product innovation and sustained organic growth, and unlocking incremental operational efficiencies, with an emphasis on pace and speed. We believe that the WOLVERINE WAY FORWARD will put us in the best position to compete and win in the "new normal" fast-changing global consumer retail environment."

For financial year 2017, Wolverine World Wide, Inc. forecasts revenue to be in the range of $2,270 million to $2,370 million. The company forecasts operating income to grow in the range of 5.20 percent to 5.90 percent and forecasts adjusted operating income to grow in the range of 10.20 percent to 10.70 percent. It expects diluted earnings per share to be in the range of $0.73 to $0.83 and expects diluted earnings per share to be in the range of $1.50 to $1.60 on adjusted basis.

The company has spent $11.80 million cash to meet investing activities during the quarter as against cash outgo of $10.50 million in the last year period.

The company has spent $23.80 million cash to carry out financing activities during the quarter as against cash inflow of $52.50 million in the last year period.

Cash and cash equivalents stood at $304.10 million as on Apr. 01, 2017, up 92.23 percent or $145.90 million from $158.20 million on Mar. 26, 2016.

Debt comes down
Wolverine World Wide, Inc. has recorded a decline in total debt over the last one year. It stood at $813.10 million as on Apr. 01, 2017, down 6.57 percent or $57.20 million from $870.30 million on Mar. 26, 2016. Interest coverage ratio deteriorated to 3.66 for the quarter from 4 for the same period last year.