Wolverine World Wide (NYSE: WWW) reported Q3 EPS of $0.43, $0.06 better than the analyst estimate of $0.37. Revenue for the quarter came in at $581.3 million versus the consensus estimate of $552.36 million.

FISCAL 2017 OUTLOOKA strong third quarter, coupled with some stable trends in the business, have resulted in the following update to the Company\'s full-year 2017 outlook:

• We are narrowing our revenue outlook to the upper end of our prior range and now expect reported revenueof $2.340 billion to $2.370 billion. This is a reported decline of approximately 6.2% to 5.0%, but underlying revenue is expected to be within the range of flat to growth of 1.5%, reflecting approximately $160.0 million revenue impact from retail store closures and the Stride Rite transition.
• Reported operating margin in the range of 5.0% to 5.4% and adjusted operating margin in the range of 10.6% to 10.9%, resulting from operational excellence initiatives focused on supply chain optimization, omnichannel transformation, and operational efficiencies. Fiscal 2016 adjusted operating margin was 8.5%.
• Reported diluted earnings per share in the range of $0.76 to $0.81 compared to $0.89 in fiscal 2016. Adjusted diluted earnings per share are now expected in the range of $1.60 to $1.65 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 $1.67 to $1.72.

Highlights

• Reported revenue of $581.3 million decreased 3.7% during the third quarter, but adjusted revenue decreased 8.0% after taking into effect the quarterly calendar change. Underlying revenue increased 1.1%.
• Reported gross margin was 39.7%, compared to 39.3% in the prior year. Adjusted gross margin on a constant currency basis was 40.4%, compared to 39.1% in the prior year, reflecting an improvement of 130 basis points despite a 90 basis point negative mix impact from store closures.
• Reported operating margin was 6.1%, compared to 11.4% in the prior year. Adjusted operating margin on a constant currency basis was 11.9% compared to 10.5% in the prior year.
• Reported diluted earnings per share were $0.24, compared to $0.49 in the prior year. Adjusted diluted earnings per share were $0.43. On a constant currency basis, adjusted earnings per share were $0.45, compared to $0.45 in the prior year.
• Inventory at the end of the quarter was down 26.0% versus the prior year.
• The Company repurchased 1,139,256 shares in the third quarter for approximately $30 million at an average price of $26.33 per share.

GUIDANCE:

Wolverine World Wide sees FY2017 EPS of $1.60-$1.65, versus the consensus of $1.61. Wolverine World Wide sees FY2017 revenue of $2.34-2.37 million, versus the consensus of $2.35 million.

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