Wolverine third quarter profit rises on brand strength

ROCKFORD, Mich. (AP) -- Wolverine Worldwide Inc.'s third-quarter profit rose 19 percent, helped by solid demand for brands such as Merrell, Patagonia and Hush Puppies. The footwear and clothing company also boosted its full-year earnings and revenue outlook on Monday on the strength of its quarterly performance. Wolverine reported net income of $40.4 million, or 82 cents per share, for the period ended Sept. 10, up from $34.1 million, or 70 cents per share, a year earlier. This easily topped the 75 cents per share that analysts polled by FactSet predicted, on average. Revenue climbed 13 percent to $361.6 million from $320.4 million, benefiting from strong performances from its outdoor segment, lifestyle unit and consumer direct business. Wall Street expected revenue of $357.6 million. The outdoor division includes Merrell footwear and clothing, Chaco and Patagonia footwear, while the lifestyle segment includes the Hush Puppies, Sebago, Cushe and Soft Style brands. The strong quarterly results show that while consumers are more conscious of their spending since the recession and during the current economic uncertainty, they remain loyal to brands they like. Chairman and CEO Blake Krueger said in a statement that the company saw unit volume growth of more than 25 percent in each of the Latin America, Europe/Middle East/Africa and Asia Pacific regions. Wolverine, which is based in Rockford, Mich., now expects full-year earnings of $2.46 to $2.52 per share on revenue of $1.4 billion to $1.43 billion. Its prior forecast called for earnings of $2.40 to $2.50 per share on revenue of $1.38 billion to $1.42 billion. Analysts foresee earnings of $2.49 per share on revenue of $1.42 billion for the year. Its shares finished at $33.25 last Friday. Published: Tue, Oct 4, 2011