Wolverine Worldwide to close 120 stores as profit dips 8.7%

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Wolverine Worldwide to close 120 stores as profit dips 8.7%
July 21, 2015 | By Gina Acosta

The Rockford, Mich.-based company posted a profit decline of 8% for the second quarter ended June 20, to $25.3 million from $27.5 million. Earnings per diluted share declined 3 cents year-over-year, from 27 cents to 24 cents. Net revenues rose 2.7%, to $630.1 million, compared to revenues of $613.5 million in the year-ago quarter. On a constant-currency basis, revenue rose 4.9 percent.

"The global demand for our family of brands remains strong and I am pleased to report that our top-line growth accelerated in the quarter and exceeded our internal expectations," commented Blake W. Krueger, Wolverine Worldwide's Chairman, Chief Executive Officer and President. "As we move into the second half of the year, we remain intensely focused on our consumers and further investing in our key strategic initiatives â€" specifically our global brand-building efforts, omnichannel transformation and the continued expansion of our portfolio's international footprint."

Despite announcing last year that it would close 140 stores by the end of fiscal 2015 in a strategic realignment, the company now says that total closures by year end are expected to number approximately 120, and that approximately 55 additional under-performing stores are expected to be closed over the next five years at their natural lease expiration.

The company is also narrowing its full-year revenue guidance and reaffirming its adjusted earnings per share guidance, as follows: Consolidated reported revenue is expected in the range of $2.82 billion to $2.85 billion, representing growth in the range of approximately 2% to 3% versus the prior year.

The company's portfolio includes: Merrell®, Sperry®, Hush Puppies®, Saucony®, Wolverine®, Keds®, Stride Rite®, Sebago®, Cushe®, Chaco®, Bates®, and HYTEST®.