Wolverine 2nd quarter profit rises on strength of Merrell

ROCKFORD, Mich. (AP) -- Wolverine Worldwide Inc.'s second-quarter profit climbed almost 40 percent, buoyed by strong results from its outdoor group and its Merrell shoe and apparel brand.

The results beat Wall Street estimates but its shares fell as the company stuck by its earlier earnings forecast. Analysts were already expecting earnings for the year at the high end of the company's range.

The footwear and clothing company said Tuesday that its net income rose to $24 million, or 48 cents per share, for the period ended June 18. That's up from $17.2 million, or 35 cents per share, a year earlier.

The results surpassed the 46 cents per share that analysts polled by FactSet expected.

Revenue rose 20 percent to $310.1 million from $258.2 million, topping Wall Street's estimate of $293.5 million.

Chairman and CEO Blake Krueger said in a statement that the company experienced double-digit revenue gains in all branded groups, particularly pointing out the strength of its outdoor group and Merrell brand. Revenue for the outdoor group increased 30 percent to $127.3 million.

Wolverine, based in Rockford, Mich., maintained its full-year forecast for earnings between $2.40 and $2.50 per share on revenue of $1.38 billion to $1.42 billion.

Analysts predict earnings of $2.49 per share on revenue of $1.4 billion. Its shares fell 89 cents, or 1.9 percent, to $41.80 in premarket treading.

Published: Wed, Jul 13, 2011