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Wolverine reports marginal sales rise

Footwear group Wolverine World Wide saw a marginal increase in revenue for the second quarter of this year, compared to the same period last year.

The group, which owns footwear brands including Merrell, CAT and Sebago, reported that revenues for the three months to June 16 stood at $312.7m (£201.2m), an increase of 0.8% compared to the same period last year. .

However, Wolverine said its gross margin in the quarter decreased by 160 basis points to 37.8% compared to a gross margin of 39.4% the previous year as a result of higher product costs and an increased amount of product going into Sale as a result of an unseasonably warm winter.

The brand owner also said that further sales growth in the quarter was hampered by continued macroeconomic uncertainty in Europe, which created challenging trading conditions in the market.

In May of this year it was announced that Wolverine had acquired the performance and lifestyle division of Collective Brands, the parent company of footwear brands including Sperry Topsider and Keds, in a $2bn (£1.2bn) deal.

Although the deal is not expected to be completed until late in the third quarter or the fourth quarter of 2012, Wolverine said that earnings in the second quarter were negatively impacted by $0.06 (£0.03) per share due to non-recurring expenses related to the pending acquisition.

“We are pleased that despite the softness in certain global markets, most notably Europe, we remain on track to deliver another year of record financial results,” said Blake Krueger, Wolverine chairman and chief executive. 

“Our diverse brand portfolio and a business model that spans geographies and distribution channels help to mitigate risk and smooth out a choppy global retail environment.”

He added that Wolverine’s outdoor group consisting of footwear brands Merrell, Chaco and Patagonia Footwear delivered a solid revenue increase in the quarter.

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