Wolverine World Wide FY revenue up 7% to record $1.06b
08 Feb '06
3 min read
"Gross margin expanded 50 basis points for the year. Strong expense controls produced 10 basis points of annualized expense leverage while the company invested in new initiatives including Merrell Apparel and Patagonia Footwear.
"The financial strength of the business has never been better, as we generated a record $119 million in cash from operating activities, achieved an 11.8 percent inventory reduction and improved our cash collections. These results have allowed us to reduce debt by $11.5 million, repurchase company shares totaling $63.7 million, invest in new growth initiatives and end the year with a cash balance of $85.3 million."
O'Donovan concluded, "Our 2005 year-end backlog is up more than 11 percent over the prior year-end level reflecting the strength of our global brand portfolio. To drive the company's future growth, we have announced a new vision, which is 'To Excite Consumers Around The World With Innovative Footwear And Apparel That Bring Style To Purpose.' Our objectives are clear: to advance the brands in our portfolio to worldwide leadership positions and invest in initiatives that will extend our brands into categories beyond footwear.
"During 2006, the company will be making significant investments in new growth initiatives including Merrell Apparel and Patagonia Footwear. Including these investments, we are confirming our 2006 estimates with a revenue range of $1.110 to $1.130 billion and earnings per share range of $1.34 to $1.40. The earnings per share estimate includes the estimated expense of FAS123(R) stock incentive expense totaling approximately $.04 per share."
marketing@alchempro.com
