Wolverine World Wide (NYSE: WWW) reported Q1 EPS of $0.37, $0.06 better than the analyst estimate of $0.31. Revenue for the quarter came in at $591.3 million versus the consensus estimate of $557.79 million.

GUIDANCE:

Wolverine World Wide sees Q2 2017 EPS of $1.58-$1.68. Wolverine World Wide sees Q2 2017 revenue of $2.27-2.37 billion.

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.

Highlights

• 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.

For earnings history and earnings-related data on Wolverine World Wide (WWW) click here.