Wolverine World Wide (NYSE: WWW) reported Q2 EPS of $0.08, $0.21 better than the analyst estimate of ($0.13). Revenue for the quarter came in at $349.1 million versus the consensus estimate of $314.96 million.

SECOND QUARTER 2020 REVIEWThe Company's results for the second quarter significantly exceeded its expectations entering the quarter, including:

• Reported revenue was $349.1 million, down 38.6% versus the prior year. On a constant currency basis, revenue was down 38.3% versus the prior year. Owned eCommerce revenue grew 96.0% versus the prior year.
• Reported gross margin was 42.2%, compared to 40.5% in the prior year.
• Reported operating margin was 2.1%, compared to 9.8% in the prior year. Adjusted operating margin was 5.1%, compared to 11.1% in the prior year.
• Reported diluted loss per share was $0.02, compared to earnings per share of $0.45 in the prior year. Adjusted diluted earnings per share were $0.08, and, on a constant currency basis, were $0.09, compared to $0.52 in the prior year.
• Inventory at the end of the quarter was down 5.0% versus the prior year and down 7.0% when excluding the impact of new stores and the incremental cost of new tariffs.
• Cash flow from operating activities in the quarter was $115.6 million, compared to $136.3 million in the prior year.
• Cash on hand at the end of the quarter was $422.6 million, compared to $116.5 million in the prior year.

“The Company's second quarter results were much stronger than expected, despite the negative impact of unprecedented global market conditions and significant retail store closures for much of the time period,” said Blake W. Krueger, Wolverine Worldwide’s Chairman, Chief Executive Officer and President. “Our brands excelled online, with nearly triple-digit owned eCommerce revenue growth, benefiting from strength in key product categories that are resonating with consumers and the digital capabilities we have invested in over the last several years. The acceleration of our digital direct offense, together with our diversified and agile business model, enabled the Company to adapt to the rapidly changing marketplace and deliver positive earnings and exceptional cash flow in the quarter. We believe the Company is positioned well to accelerate out of the current market downturn once the impact of the pandemic subsides.”

“The Company's response to the challenging environment has been exceptional,” said Mike Stornant, Senior Vice President and Chief Financial Officer. “At the onset of the pandemic, we prioritized positive cash flow and a strong balance sheet, and we delivered approximately $116 million of cash flow from operations during the second quarter – significantly above our expectations. Our inventory position improved meaningfully during the quarter, while gross margin expanded 170 basis points. These financial results are very encouraging and, importantly, are clear evidence of an operating model that can adjust quickly to unexpected challenges. While we expect the second half of the year to remain challenging, we are well prepared for various scenarios that may play out and are confident that the Company will remain strong during this volatile time.”

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