Wolverine World Wide Reports Upbeat Q3 Earnings, Raises Full Year Projections

Wolverine World Wide Inc WWW has reported 27% y/y rise in its Q3 net income rose and lifted its full year guidance. WWW posted its Q3 net income at $34.1 million, or $0.70 per share, as compared with $26.8 million, or $0.54 per share, in the year-ago quarter. The company's adjusted share earnings in the year-ago period were $0.62 per share. The company's revenue increased 11.7% y/y to $320.4 million. However, analysts expected the company to post earnings at $0.67 per share, on $320 million in revenue. The company's Q3 operating expenses rose 9.0% y/y to $80.7 million, excluding restructuring and related charges. Blake W. Krueger, WWW's Chairman and CEO said, "The momentum in our business continues to build, and we are pleased to report excellent results for the third quarter, with record performance in both revenue and earnings per share." He added, "Our standout financial performance was broad-based, with all of our branded business units, including the consumer direct and leathers divisions, contributing to the strong revenue increase. Additionally, the Outdoor Group, Heritage Brands Group and Wolverine Footwear Group all delivered strong double-digit increases in operating profit. The actions we took last year to position the Company for accelerated growth coming out of a recessionary environment are having the intended beneficial impact." Don Grimes, WWW's CFO said, "The Company's proven multi-brand, multi-geography and multi-distribution channel business model remains one of our key competitive advantages. The quarter's excellent financial performance underscores both the strength of our business model and the Company's continued focus on delivering solid returns to our shareholders." WWW has lifted its EPS projections for FY10 to $2.04-$2.08, excluding restructuring and related charges. However, analysts were expecting FY10 earnings at $2.08 per share. The company has also raised its revenue projections for FY10 to $1.2 billion-$1.22 billion, which represents a rise of 9.0% to 10.8% against the previous year. Analysts estimated FY10 revenue at $1.21 billion. Krueger mentioned, "We are very optimistic about the future, as the first three quarters of 2010 have signaled a return to accelerated growth for our Company. While the consumer recovery is not as robust or as steady as many predicted, we continue to be encouraged by the eagerness with which both our retail partners and consumers are embracing our global lifestyle brands. Our order backlog is exceptionally strong, and we remain focused on delivering innovation and performance in everything we do." WWW's shares gained 0.66% to $29.00 in the after-hours trading session. Read more from Benzinga's Company news.