ROCKFORD, Mich., May 10, 2017 /PRNewswire/ -- Wolverine World
Wide, Inc. (NYSE: WWW) today reported financial results for the
first quarter ended April 1,
2017.
"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, 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."
WOLVERINE WAY FORWARD TRANSFORMATION UPDATE
- The WOLVERINE WAY FORWARD transformation includes key
operational excellence initiatives with incremental operating
profit benefits, further solidifying the Company's confidence in
achieving its stated goal of 12% adjusted operating margin by the
end of 2018.
- The previously announced Store Restructuring Plan has
accelerated, with 180 stores now closed since the beginning of
2017. The Company incurred approximately $9.2 million of operating losses in Q1 2017 for
stores within the Plan that will not reoccur next year. The losses
include $4.4 million of inventory
mark-downs related to accelerated store closures. All Stride Rite
and Track-N-Trail concept stores are now closed. These store
closures allowed the Company to liquidate inventory totaling
approximately $20 million during the
quarter.
FIRST-QUARTER 2017 REVIEW
Prior to fiscal 2017, the
Company reported its quarterly results of operations on the basis
of 12-week periods for each of the first three fiscal quarters and
a 16 or 17-week period for the fiscal fourth quarter. Beginning in
fiscal 2017, the Company's fiscal year will be comprised of 13-week
quarters for each of the first three fiscal quarters and a 13 or
14-week period for the fiscal fourth quarter. There is no change to
the Company's fiscal year-end date. References to the "quarter
ended" or "fiscal quarter" refer to the 13-week period ended
April 1, 2017 or the 12-week period
ended March 26, 2016.
- Reported revenue of $591.3
million decreased 4.8% after taking into consideration the
impact of the additional week of operations in the first quarter of
fiscal 2017. Underlying revenue declined 2.0%.
- Reported gross margin of 39.7%, compared to 39.6% in the prior
year. Adjusted gross margin on a constant currency basis was
41.7%, up 120 basis points versus the prior year.
- Reported operating margin was 5.5%, compared to 5.9% in the
prior year. Adjusted operating margin on a constant currency
basis was 11.0%, up 260 basis points versus the prior year and
excludes $4.4 million of incremental
inventory markdowns related to the accelerated store closings.
- Reported diluted earnings per share were $0.17, compared to earnings per share of
$0.18 in the prior year.
Adjusted diluted earnings per share were $0.37, and, on a constant currency basis, were
$0.40, compared to $0.31 in the prior year.
- Inventory at the end of the quarter was down 25.9% versus the
prior year, meaningfully better than expected.
- The Company successfully exited 104 underperforming stores
during the quarter and an additional 76 stores subsequent to
quarter-end.
"We are pleased to deliver better-than-expected results for the
first quarter, demonstrating the success of our strategy focused on
operational excellence, growth and speed," stated Mike Stornant, Senior Vice President and Chief
Financial Officer. "Our proactive efforts aimed at overcoming the
challenging global market conditions paid off in Q1, with nearly
all brands in the portfolio exceeding their revenue plans for the
quarter, while also over-delivering on our operating profit goals.
We made tremendous progress on our store realignment plan including
the closure of all Stride Rite stores, and now have line-of-sight
to our go-forward store-fleet. We managed our working capital well
in the quarter, with inventory down over 25% and DSOs improving by
1.1 days. We believe the strength of our global brands combined
with the continued discipline in the management of our business and
implementation of our WOLVERINE WAY FORWARD plan leaves us well
placed to achieve our goals."
FISCAL 2017 OUTLOOK
A good first quarter, coupled
with some improving trends in the business have resulted in the
following update to the Company's full-year 2017 outlook:
- Reported revenue in the range of $2.270
billion to $2.370 billion - unchanged from the Company's
original outlook. This is a decline of approximately 9.0% to
5.0%. Underlying revenue is expected in the range of down
2.3% to growth of 1.9%, reflecting approximately $160 million to $180 million of impact from
currency and retail store closures.
- Reported operating margin in the range of 5.2% to 5.9% and
adjusted operating margin in the range of 10.2% to 10.7%, resulting
from operational excellence initiatives focused on supply chain
optimization, omnichannel transformation, and operational
efficiencies.
- Reported diluted earnings per share in the range of
$0.73 to $0.83 compared to
$0.89 in fiscal 2016. Adjusted
diluted earnings per share are now expected in the range of
$1.50 to $1.60 compared to
$1.36 in fiscal 2016 adjusted on the
same basis. On a constant currency basis, adjusted earnings per
share in the range of $1.58 to
$1.68.
NON-GAAP FINANCIAL MEASURES
This earnings release
contains certain non-GAAP financial measures. References to
"underlying" revenue indicate reported revenue adjusted for the
impact of foreign exchange, closed retail stores, the impact of the
additional week of operations and the exit of the Cushe business.
Measures referred to as "adjusted" financial results exclude
restructuring and impairment costs, organizational transformation
costs, debt extinguishment and other costs, and the impact of the
additional week of operations. In addition to these adjustments of
the type the Company has made in recent periods, adjusted gross
profit, adjusted operating income and adjusted earnings per share
in this release are further adjusted to exclude incremental
inventory markdowns related to 180 stores that are now closed under
management's previously announced 2016 store restructure
Plan. In light of the large scale of closures in a compressed
time frame, management believes this treatment gives investors a
better view of continuing operations. Pursuant to the requirements
of Regulation G, the company has provided a reconciliation of the
above of non-GAAP financial measures to the most directly
comparable GAAP financial measure.
EARNINGS CALL INFORMATION
The Company will host a
conference call today at 8:30 a.m. Eastern
Time to discuss these results and current business
trends. The conference call will be broadcast live and
accessible under the "Investor Relations" tab at
wolverineworldwide.com. A replay of the conference call will
be available at the Company's website for a period of approximately
30 days.
ABOUT WOLVERINE WORLDWIDE
With a commitment to
service and product excellence, Wolverine World Wide, Inc. is one
of the world's leading marketers of branded casual, active
lifestyle, work, outdoor sport, athletic, children's and uniform
footwear and apparel. The Company's portfolio of highly recognized
brands includes: Merrell®, Sperry®, Hush
Puppies®, Saucony®, Wolverine®,
Keds®, Stride Rite®, Sebago®,
Chaco®, Bates®, and HYTEST®.
The Company also is the global footwear licensee of the popular
brands Cat® and Harley-Davidson®. The
Company's products are carried by leading retailers in the U.S. and
globally in approximately 200 countries and territories. For
additional information, please visit our website,
wolverineworldwide.com
FORWARD-LOOKING STATEMENTS
This press release
contains forward-looking statements, including statements
regarding: the Company's ability to successfully execute key
strategic initiatives, elevate brands with consumers, and deliver
product innovation, organic growth and operational efficiencies;
the Company's ability to compete and win in the current
environment; and the Company's fiscal 2017 outlook and guidance. In
addition, words such as "guidance," "estimates," "anticipates,"
"believes," "forecasts," "step," "plans," "predicts," "projects,"
"is likely," "expects," "intends," "should," "will," "confident,"
variations of such words, and similar expressions are intended to
identify forward-looking statements. These statements are not
guarantees of future performance and involve certain risks,
uncertainties, and assumptions ("Risk Factors") that are difficult
to predict with regard to timing, extent, likelihood, and degree of
occurrence. Risk Factors include, among others: changes
in general economic conditions, employment rates, business
conditions, interest rates, tax policies and other factors
affecting consumer spending in the markets and regions in which the
Company's products are sold; the inability for any reason to
effectively compete in global footwear, apparel and consumer-direct
markets; the inability to maintain positive brand images and
anticipate, understand and respond to changing footwear and apparel
trends and consumer preferences; the inability to effectively
manage inventory levels; increases or changes in duties, tariffs,
quotas or applicable assessments in countries of import and export;
foreign currency exchange rate fluctuations; currency restrictions;
capacity constraints, production disruptions, quality issues, price
increases or other risks associated with foreign sourcing; the cost
and availability of raw materials, inventories, services and labor
for owned and contract manufacturers; labor disruptions; changes in
relationships with, including the loss of, significant wholesale
customers; the failure of the U.S. Department of Defense to
exercise future purchase options or award new contracts, or the
cancellation or modification of existing contracts by the
Department of Defense or other military purchasers; risks related
to the significant investment in, and performance of, the Company's
consumer-direct operations; risks related to expansion into new
markets and complementary product categories as well as
consumer-direct operations; the impact of seasonality and
unpredictable weather conditions; changes in general economic
conditions and/or the credit markets on the Company's distributors,
suppliers and customers; increase in the Company's effective tax
rates; failure of licensees or distributors to meet planned annual
sales goals or to make timely payments to the Company; the risks of
doing business in developing countries, and politically or
economically volatile areas; the ability to secure and protect
owned intellectual property or use licensed intellectual property;
the impact of regulation, regulatory and legal proceedings and
legal compliance risks; the potential breach of the Company's
databases, or those of its vendors, which contain certain personal
information or payment card data; problems affecting the Company's
distribution system, including service interruptions at shipping
and receiving ports; strategic actions, including new initiatives
and ventures, acquisitions and dispositions, and the Company's
success in integrating acquired businesses, and implementing new
initiatives and ventures; the risk of impairment to goodwill and
other acquired intangibles; the success of the Company's
consumer-direct realignment initiatives; changes in future pension
funding requirements and pension expenses; and additional factors
discussed in the Company's reports filed with the Securities and
Exchange Commission and exhibits thereto. The foregoing Risk
Factors, as well as other existing Risk Factors and new Risk
Factors that emerge from time to time, may cause actual results to
differ materially from those contained in any forward-looking
statements. Given these risks and uncertainties, investors
should not place undue reliance on forward-looking statements as a
prediction of actual results. Furthermore, the Company
undertakes no obligation to update, amend, or clarify
forward-looking statements.
WOLVERINE WORLD
WIDE, INC.
CONSOLIDATED
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(In millions,
except per share data)
|
|
|
13 Weeks Ended
April 1, 2017
|
|
12 Weeks Ended
March 26, 2016
|
Revenue
|
$
|
591.3
|
|
|
$
|
577.6
|
|
Cost of goods
sold
|
352.0
|
|
|
344.9
|
|
Restructuring
costs
|
4.6
|
|
|
3.9
|
|
Gross
profit
|
234.7
|
|
|
228.8
|
|
Gross
margin
|
39.7
|
%
|
|
39.6
|
%
|
|
|
|
|
Selling, general and
administrative expenses
|
182.1
|
|
|
184.1
|
|
Restructuring and
impairment costs
|
20.0
|
|
|
10.7
|
|
Operating
expenses
|
202.1
|
|
|
194.8
|
|
Operating expenses
as a % of revenue
|
34.2
|
%
|
|
33.7
|
%
|
|
|
|
|
Operating
profit
|
32.6
|
|
|
34.0
|
|
Operating
margin
|
5.5
|
%
|
|
5.9
|
%
|
|
|
|
|
Interest expense,
net
|
8.9
|
|
|
8.5
|
|
Other expense
(income), net
|
2.5
|
|
|
(0.1)
|
|
Total other
expenses
|
11.4
|
|
|
8.4
|
|
Earnings before
income taxes
|
21.2
|
|
|
25.6
|
|
|
|
|
|
Income tax
expense
|
4.4
|
|
|
8.0
|
|
Effective tax
rate
|
20.7
|
%
|
|
31.4
|
%
|
|
|
|
|
Net
earnings
|
16.8
|
|
|
17.6
|
|
|
|
|
|
Less: net earnings
attributable to noncontrolling interests
|
0.1
|
|
|
0.2
|
|
Net earnings
attributable to Wolverine World Wide, Inc.
|
$
|
16.7
|
|
|
$
|
17.4
|
|
Diluted earnings per
share
|
$
|
0.17
|
|
|
$
|
0.18
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
Net earnings used to
calculate diluted earnings per share
|
$
|
16.3
|
|
|
$
|
17.0
|
|
Shares used to
calculate diluted earnings per share
|
96.0
|
|
|
96.2
|
|
Weighted average
shares outstanding
|
97.0
|
|
|
99.2
|
|
WOLVERINE WORLD
WIDE, INC.
CONSOLIDATED
CONDENSED BALANCE SHEETS
(Unaudited)
(In
millions)
|
|
|
April 1,
2017
|
|
March 26,
2016
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
|
304.1
|
|
|
$
|
158.2
|
|
Accounts receivables,
net
|
287.7
|
|
|
326.0
|
|
Inventories,
net
|
356.5
|
|
|
480.8
|
|
Other current
assets
|
39.5
|
|
|
40.3
|
|
Total current
assets
|
987.8
|
|
|
1,005.3
|
|
Property, plant and
equipment, net
|
145.1
|
|
|
135.3
|
|
Goodwill and other
indefinite-lived intangibles
|
1,103.6
|
|
|
1,115.6
|
|
Other non-current
assets
|
151.3
|
|
|
168.4
|
|
Total
assets
|
$
|
2,387.8
|
|
|
$
|
2,424.6
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Accounts payable and
other accrued liabilities
|
$
|
236.5
|
|
|
$
|
247.1
|
|
Current maturities of
long-term debt
|
41.2
|
|
|
16.9
|
|
Borrowings under
revolving credit agreements and other short-term notes
|
2.4
|
|
|
60.0
|
|
Total current
liabilities
|
280.1
|
|
|
324.0
|
|
Long-term
debt
|
769.5
|
|
|
793.4
|
|
Other non-current
liabilities
|
342.7
|
|
|
326.1
|
|
Stockholders'
equity
|
995.5
|
|
|
981.1
|
|
Total liabilities and
stockholders' equity
|
$
|
2,387.8
|
|
|
$
|
2,424.6
|
|
WOLVERINE WORLD
WIDE, INC.
CONSOLIDATED
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(In
millions)
|
|
|
13 Weeks Ended
April 1, 2017
|
|
12 Weeks Ended
March 26, 2016
|
OPERATING
ACTIVITIES:
|
|
|
|
Net
earnings
|
$
|
16.8
|
|
|
$
|
17.6
|
|
Adjustments to
reconcile net earnings to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
9.2
|
|
|
9.8
|
|
Stock-based
compensation expense
|
7.7
|
|
|
7.6
|
|
Excess tax benefits
from stock-based compensation
|
—
|
|
|
(0.1)
|
|
Pension and SERP
expense
|
3.7
|
|
|
2.4
|
|
Restructuring and
impairment costs
|
24.6
|
|
|
14.6
|
|
Other
|
(17.9)
|
|
|
(9.8)
|
|
Changes in operating
assets and liabilities
|
(74.9)
|
|
|
(121.0)
|
|
Net cash used in
operating activities
|
(30.8)
|
|
|
(78.9)
|
|
|
|
|
|
INVESTING
ACTIVITIES:
|
|
|
|
Additions to
property, plant and equipment
|
(11.1)
|
|
|
(9.9)
|
|
Other
|
(0.7)
|
|
|
(0.6)
|
|
Net cash used in
investing activities
|
(11.8)
|
|
|
(10.5)
|
|
|
|
|
|
FINANCING
ACTIVITIES:
|
|
|
|
Net borrowings
(payments) under revolving credit agreements and other short-term
notes
|
(0.6)
|
|
|
60.0
|
|
Payments on long-term
debt
|
(7.5)
|
|
|
—
|
|
Cash dividends
paid
|
(5.8)
|
|
|
(6.0)
|
|
Purchase of common
stock for treasury
|
(11.5)
|
|
|
(0.1)
|
|
Purchases of shares
under employee stock plans
|
(4.9)
|
|
|
(4.2)
|
|
Proceeds from the
exercise of stock options
|
6.5
|
|
|
1.9
|
|
Excess tax benefits
from stock-based compensation
|
—
|
|
|
0.1
|
|
Contributions from
noncontrolling interests
|
—
|
|
|
0.8
|
|
Net cash provided by
(used in) financing activities
|
(23.8)
|
|
|
52.5
|
|
|
|
|
|
Effect of foreign
exchange rate changes
|
0.7
|
|
|
1.0
|
|
Decrease in cash and
cash equivalents
|
(65.7)
|
|
|
(35.9)
|
|
|
|
|
|
Cash and cash
equivalents at beginning of the year
|
369.8
|
|
|
194.1
|
|
Cash and cash
equivalents at end of the period
|
$
|
304.1
|
|
|
$
|
158.2
|
|
The following tables contain information regarding the non-GAAP
adjustments used by the Company in the presentation of its
financial results:
WOLVERINE WORLD
WIDE, INC.
|
|
Q1 2017
RECONCILIATION TABLES
|
|
RECONCILIATION OF
REPORTED REVENUE GROWTH TO
UNDERLYING REVENUE
GROWTH*
(Unaudited)
(In
millions)
|
|
|
GAAP
Basis
|
|
Impact of
Additional Week (1)
|
|
Adjusted on
a Restated
Basis
|
|
Foreign Exchange
Impact
|
|
Adjustments
(2)
|
|
As Adjusted
on a Constant
Currency
Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue - Fiscal 2017
Q1
|
$
|
591.3
|
|
|
|
|
$
|
591.3
|
|
|
$
|
2.5
|
|
|
|
|
$
|
593.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Growth
|
2.4
|
%
|
|
|
|
(4.8)
|
%
|
|
|
|
|
|
(2.0)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue - Fiscal 2016
Q1
|
$
|
577.6
|
|
|
$
|
43.2
|
|
|
$
|
620.8
|
|
|
|
|
$
|
(14.9)
|
|
|
$
|
605.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Given the first
quarter of fiscal 2016 had 12 weeks of operations and the first
quarter of fiscal 2017 had 13 weeks of operations, the Company
quantified the impact of adding an additional week to the first
quarter of fiscal 2016 to allow for a better comparison to the
first quarter of fiscal 2017.
|
(2)
|
Adjustments include
the impact from retail stores closed ($13.6 million) and the exit
of the Cushe business ($1.3 million).
|
RECONCILIATION OF
REPORTED GROSS MARGIN TO ADJUSTED
GROSS MARGIN ON A
CONSTANT CURRENCY BASIS*
(Unaudited)
(In
millions)
|
|
|
GAAP
Basis
|
|
Foreign
Exchange
Impact
|
|
Restructuring
Costs
|
|
Store
Inventory
Mark-
downs (1)
|
|
Impact of
Additional Week (2)
|
|
As Adjusted
on a
Constant
Currency
Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit - Fiscal
2017 Q1
|
$
|
234.7
|
|
|
$
|
4.0
|
|
|
$
|
4.6
|
|
|
$
|
4.4
|
|
|
|
|
$
|
247.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
39.7
|
%
|
|
|
|
|
|
|
|
|
|
41.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit - Fiscal
2016 Q1
|
$
|
228.8
|
|
|
|
|
$
|
3.9
|
|
|
$
|
0.5
|
|
|
$
|
18.4
|
|
|
$
|
251.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
39.6
|
%
|
|
|
|
|
|
|
|
|
|
40.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Q1 2017 store
inventory mark-downs relate to retail stores closed since January
1, 2017 as part of the Company's previously announced 2016 store
closure plan ("2016 Plan") as disclosed in the Company's 2016 Form
10-K. Q1 2016 store inventory mark-downs related to retail stores
closed in Q1 2016 as part of the Company's 2014 restructuring plan
("2014 Plan") as disclosed in the Company's 2014 Form
10-K
|
(2)
|
Given the first
quarter of fiscal 2016 had 12 weeks of operations and the first
quarter of fiscal 2017 had 13 weeks of operations, the Company
quantified the impact of adding an additional week to the first
quarter of fiscal 2016 to allow for a better comparison to the
first quarter of fiscal 2017.
|
RECONCILIATION OF
REPORTED OPERATING MARGIN TO ADJUSTED
OPERATING MARGIN
ON A CONSTANT CURRENCY BASIS*
(Unaudited)
(In
millions)
|
|
|
GAAP
Basis
|
|
Foreign Exchange
Impact
|
|
Restructuring
and
Impairment
Costs
|
|
Store
Inventory
Mark-
downs (1)
|
|
Organizational
Transformation
Costs (2)
|
|
Impact of
Additional
Week (3)
|
|
As Adjusted
on a Constant
Currency
Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
-
Fiscal 2017 Q1
|
$
|
32.6
|
|
|
$
|
3.1
|
|
|
$
|
24.6
|
|
|
$
|
4.4
|
|
|
$
|
0.8
|
|
|
|
|
$
|
65.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
5.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
11.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
-
Fiscal 2016 Q1
|
$
|
34.0
|
|
|
|
|
$
|
14.6
|
|
|
$
|
0.5
|
|
|
$
|
—
|
|
|
$
|
2.9
|
|
|
$
|
52.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
5.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
8.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Q1 2017 store
inventory mark-downs relate to retail stores closed since January
1, 2017 as part of the 2016 Plan. Q1 2016 store inventory
mark-downs related to retail stores closed in Q1 2016 as part of
the 2014 Plan.
|
(2)
|
Organizational
transformation costs include third party consulting costs and costs
related to the Company's distribution center
optimization.
|
(3)
|
Given the first
quarter of fiscal 2016 had 12 weeks of operations and the first
quarter of fiscal 2017 had 13 weeks of operations, the Company
quantified the impact of adding an additional week to the first
quarter of fiscal 2016 to allow for a better comparison to the
first quarter of fiscal 2017.
|
RECONCILIATION OF
REPORTED DILUTED EPS TO ADJUSTED
DILUTED EPS ON A
CONSTANT CURRENCY BASIS*
(Unaudited)
|
|
|
GAAP Basis
EPS
|
|
Adjustments
(1)
|
|
As Adjusted
EPS
|
|
Foreign
Exchange
Impact
|
|
As Adjusted
EPS On a
Constant
Currency Basis
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2017
Q1
|
$
|
0.17
|
|
|
$
|
0.20
|
|
|
$
|
0.37
|
|
|
$
|
0.03
|
|
|
$
|
0.40
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2016
Q1
|
$
|
0.18
|
|
|
$
|
0.13
|
|
|
$
|
0.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Fiscal 2017
adjustments include the impact of restructuring and impairment
costs, store inventory mark-downs related to retail stores closed
since January 1, 2017 as part of the 2016 Plan, and organizational
transformation costs. Fiscal 2016 adjustments include the impact of
restructuring and impairment costs, store inventory mark-downs
related to retail stores closed in Q1 2016 as part of the 2014
Plan, and the impact of the additional week of
operations.
|
2017 GUIDANCE
RECONCILIATION TABLES
|
|
RECONCILIATION OF
FISCAL 2017 FULL-YEAR REPORTED REVENUE GROWTH
GUIDANCE TO
UNDERLYING REVENUE GROWTH GUIDANCE*
(Unaudited)
(In
millions)
|
|
|
GAAP
Basis
Full-Year
Revenue
|
|
Foreign
Exchange
Impact
|
|
Adjustments
(1)
|
|
Underlying
Full-
Year Revenue
|
|
|
|
|
|
|
|
|
Fiscal 2017 Revenue
Guidance
|
$
2,270 - 2,370
|
|
|
$
|
30.0
|
|
|
|
|
$
2,300 - 2,400
|
|
Fiscal 2016
Revenue
|
$
|
2,494.6
|
|
|
|
|
$
|
(140.0)
|
|
|
$
|
2,354.6
|
|
Percentage growth
(decline)
|
(9.0) -
(5.0)%
|
|
|
|
|
|
|
(2.3) -
1.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjustments include
the estimated impact from retail store closures.
|
RECONCILIATION OF
FISCAL 2017 FULL-YEAR REPORTED OPERATING PROFIT
GUIDANCE TO
ADJUSTED OPERATING PROFIT GUIDANCE*
(Unaudited)
(In
millions)
|
|
|
GAAP
Basis
Full-Year
Operating Profit
|
|
Adjustments
(1)
|
|
As
Adjusted
Full-Year
Operating Profit
|
|
|
|
|
|
|
Fiscal 2017 Operating
Profit Guidance
|
$
118 - 139
|
|
$
|
115.0
|
|
|
$
233 - 254
|
Operating
Margin
|
5.2 -
5.9%
|
|
|
|
10.2 -
10.7%
|
|
|
|
|
|
|
|
|
(1)
|
Adjustments include
the estimated impact from restructuring and impairment costs,
organizational transformation costs and $8.6 million of store
inventory mark-downs related to retail stores closed since January
1, 2017 as part of the 2016 Plan.
|
RECONCILIATION OF
FISCAL 2017 FULL-YEAR DILUTED EPS GUIDANCE TO ADJUSTED
DILUTED EPS ON A CONSTANT CURRENCY BASIS GUIDANCE*
(Unaudited)
|
|
|
GAAP
Basis
Full-Year
2017
|
|
Adjustments
(1)
|
|
As
Adjusted
Full-Year
2017
|
|
Foreign
Exchange
Impact
|
|
As
Adjusted
Full-Year 2017
Constant
Currency Basis
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
Guidance
|
$ 0.73
- 0.83
|
|
$
|
0.77
|
|
|
$ 1.50
- 1.60
|
|
$
|
0.08
|
|
|
$ 1.58
- 1.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjustments include
estimated restructuring and impairment costs, organizational
transformation costs and $8.6 million of store inventory mark-downs
related to retail stores closed since January 1, 2017 as part of
the 2016 Plan.
|
RECONCILIATION OF
FISCAL 2016 FULL-YEAR REPORTED
DILUTED EPS TO
ADJUSTED DILUTED EPS *
(Unaudited)
|
|
|
GAAP
Basis
Full-Year
2016
|
|
Adjustments
(1)
|
|
As Adjusted
Full-Year
2016 EPS
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
0.89
|
|
|
$
|
0.47
|
|
|
$
|
1.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjustments include
restructuring and impairment costs, organizational transformation
costs and $0.6 million of store inventory mark-downs related to
retail stores closed in fiscal 2016 as part of 2016 Plan and 2014
Plan.
|
*
|
To supplement the
consolidated financial statements presented in accordance with
Generally Accepted Accounting Principles ("GAAP"), the Company
describes what certain financial measures would have been if
restructuring and impairment costs, incremental store inventory
mark-downs and organizational transformation costs were
excluded. The Company also describes underlying revenue, which
excludes the impact of foreign exchange, the impact of retail store
closures, the impact of the additional week of operations and the
exit of the Cushe business in fiscal 2016. The Company believes
these non-GAAP measures provide useful information to both
management and investors to increase comparability to the prior
period by adjusting for certain items that may not be indicative of
core operating measures and to better identify trends in our
business. The adjusted financial results are used by
management to, and allow investors to, evaluate the operating
performance of the Company on a comparable basis. The Company
evaluates results of operations on both a reported and a constant
currency basis. The constant currency presentation, which is a
non-GAAP measure, excludes the impact of fluctuations in foreign
currency exchange rates. The Company believes providing constant
currency information provides valuable supplemental information
regarding results of operations, consistent with how the Company
evaluates performance. The Company calculates constant currency by
converting the current-period local currency financial results
using the prior period exchange rates and comparing these adjusted
amounts to our current period reported results. Management does
not, nor should investors, consider such non-GAAP financial
measures in isolation from, or as a substitution for, financial
information prepared in accordance with GAAP. A
reconciliation of all non-GAAP measures included in this press
release, to the most directly comparable GAAP measures, are found
in the financial tables above.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/wolverine-worldwide-reports-first-quarter-results-and-updates-full-year-earnings-guidance-300454913.html
SOURCE Wolverine World Wide, Inc.