ROCKFORD, Mich. - Wolverine World Wide, Inc. (NYSE:WWW) saw its shares surge 5.9% after the footwear and apparel company reported better-than-expected third quarter results and raised its full-year guidance.
The company posted adjusted earnings per share of $0.29, surpassing analyst estimates of $0.21. Revenue came in at $440.2 million, topping expectations of $420.95 million.
Wolverine World Wide's ongoing business revenue, which excludes divested brands, declined 7% YoY to $440.1 million. However, the company saw strength in key brands, with Merrell revenue up 1.4% and Sweaty Betty rising 3%.
"In the third quarter, we delivered better-than-expected revenue and earnings — led by Merrell and Saucony outpacing our forecast — as we continue to make progress on our plan to turnaround and transform the Company for the future," said Chris Hufnagel, President and CEO.
Gross margin expanded significantly to 45.3%, up 450 basis points YoY, driven by lower supply chain costs and reduced sales of end-of-life inventory.
Looking ahead, Wolverine raised its full-year outlook, now expecting adjusted EPS of $0.80-$0.90 on revenue of $1.73-$1.745 billion. This compares favorably to prior guidance of $0.75-$0.85 EPS on revenue of $1.71-$1.73 billion.
The company also made progress on inventory reduction, with levels down 49.4% YoY to $285.5 million at quarter-end.
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