Wolverine Worldwide Completes Portfolio Management Initiatives And Provides Preliminary And Expected Financial Disclosures
"The portfolio changes we made in the first three quarters of 2017 are an important component of our comprehensive WOLVERINE WAY FORWARD transformation," said
"We are very pleased with the progress made in 2017 to improve the performance of our go-forward portfolio," said
ABOUT WOLVERINE WORLDWIDE
With a commitment to service and product excellence,
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements, including statements regarding: the effects of the Company's portfolio management initiatives, including their go forward impact; the Company's ability to successfully complete its WOLVERINE WAY FORWARD transformation and to optimize the organization to the consumer and global marketplace; future profitability and stability; projections about the impact of the portfolio management initiatives, including those in the following supplemental table; and the ability to wrap up portfolio management initiatives in 2017 or at all, including the conclusion of the novation of
2017 DIVESTITURE AND STORE CLOSING |
|||||||||||||||||||
FINANCIAL SUMMARY |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
(In millions, except per share amounts) |
|||||||||||||||||||
In order to provide clarity on the anticipated financial impact of the 2017 divestitures and store closures, the Company has provided additional information within the supplemental table below. The items included in the table represent amounts that are, or that we expect to be, reflected in the fiscal 2017 results that we do not expect to reoccur in following fiscal years. The Company believes providing the following information is helpful to better understand the impact to the go forward business. |
|||||||||||||||||||
Q1(1) |
Q2(1) |
Q3(2) |
Q4(3) |
2017 Full-Year |
|||||||||||||||
Revenue - Impact |
|||||||||||||||||||
Sebago (4) |
$ |
7.6 |
$ |
5.5 |
$ |
6.9 |
$ |
7.4 |
$ |
27.4 |
|||||||||
Department of Defense (5) |
6.4 |
6.5 |
7.2 |
7.1 |
27.2 |
||||||||||||||
Stride Rite wholesale (6) |
18.5 |
21.6 |
— |
— |
40.1 |
||||||||||||||
Store Closings (7) |
34.0 |
18.6 |
7.9 |
7.9 |
68.4 |
||||||||||||||
Total Revenue - Impact |
$ |
66.5 |
$ |
52.2 |
$ |
22.0 |
$ |
22.4 |
$ |
163.1 |
|||||||||
Gross profit (loss) - Impact |
24.7 |
18.3 |
6.2 |
3.0 |
52.2 |
||||||||||||||
Selling, general, and administrative expenses - Impact |
29.7 |
18.8 |
5.5 |
5.0 |
59.0 |
||||||||||||||
Operating profit (loss) - Impact |
$ |
(5.0) |
$ |
(0.5) |
$ |
0.7 |
$ |
(2.0) |
$ |
(6.8) |
|||||||||
Net earnings (loss) per share - Impact |
$ |
(0.03) |
$ |
— |
$ |
— |
$ |
(0.01) |
$ |
(0.04) |
|||||||||
(1) The first and second quarter financial information includes certain estimates. |
|||||||||||||||||||
(2) As the Company has not completed its quarter-end fiscal close, the third quarter financial information is preliminary, and, therefore, subject to final quarter-end closing adjustments and may change. The preliminary financial results presented in this release are based solely upon information available as of the date of this release. |
|||||||||||||||||||
(3) Fiscal 2017 Q4 amounts represent the Company's latest forecast. |
|||||||||||||||||||
(4) The Sebago® divestiture line item reflects the estimated revenue from sale of Sebago® products that are not expected to reoccur beyond fiscal 2017 given the sale of the brand in Q3 2017. Under the terms of the sale agreement, the Company is allowed to sell Sebago® products through fiscal 2017. |
|||||||||||||||||||
(5) The Department of Defense (DoD) transition reflects the estimated 2017 revenues that are not expected to reoccur beyond fiscal 2017 due to the sale of the Company's DoD contract business, which was finalized on September 29, 2017. The sale agreement requires the Company to continue to sell its products under certain contracts with the DoD until all such contracts can be novated, which is expected to occur during the fourth quarter of fiscal 2017. |
|||||||||||||||||||
(6) The Stride Rite® wholesale revenue line item represents those revenues prior to the transition to a license model on July 2nd, 2017 net of estimated license revenue. |
|||||||||||||||||||
(7) The store closing line item represents the amounts from stores that closed or are expected to close in 2017. |
View original content:http://www.prnewswire.com/news-releases/wolverine-worldwide-completes-portfolio-management-initiatives-and-provides-preliminary-and-expected-financial-disclosures-300548742.html
SOURCE Wolverine Worldwide
Michael D. Stornant, (616) 866-5728