WOLVERINE WORLD WIDE, INC. ROCKFORD, Mich., Nov. 8, 2017 /PRNewswire/ -- Wolverine World Wide, Inc. (NYSE: WWW) today reported financial results for the third quarter ended September 30, 2017.
"We are very pleased to continue our positive momentum and report third quarter revenue and earnings that surpassed expectations. This marks the third consecutive quarter of strong results for the Company," said Blake W. Krueger, Wolverine Worldwide's Chairman, Chief Executive Officer and President. "We continue to make excellent progress on our enterprise wide strategic transformation, the WOLVERINE WAY FORWARD, including the recently announced sale of our Department of Defense business. Our third quarter results are reflective of this progress. This transformation is focused on elevating our most powerful brands with consumers, delivering continuous product innovation and sustained organic growth, and unlocking incremental operational efficiencies, all with an emphasis on pace and speed. We believe that the WOLVERINE WAY FORWARD will enable us to drive global growth in the "new normal" fast-changing global consumer retail environment."
THIRD-QUARTER 2017 REVIEW
The highlights of the Company's third quarter financial performance are summarized below. The third quarter revenue and earnings per share amounts reflect the Company's revised quarterly calendar. To provide a better comparison to fiscal 2016, the Company has provided additional information regarding the impact of the calendar change within the reconciliation tables accompanying the earnings release.
-- Reported revenue of $581.3 million decreased 3.7% during the third
quarter, but adjusted revenue decreased 8.0% after taking into effect
the quarterly calendar change. Underlying revenue increased 1.1%.
-- Reported gross margin was 39.7%, compared to 39.3% in the prior year.
Adjusted gross margin on a constant currency basis was 40.4%, compared
to 39.1% in the prior year, reflecting an improvement of 130 basis
points despite a 90 basis point negative mix impact from store closures.
-- Reported operating margin was 6.1%, compared to 11.4% in the prior year.
Adjusted operating margin on a constant currency basis was 11.9%
compared to 10.5% in the prior year.
-- Reported diluted earnings per share were $0.24, compared to $0.49 in the
prior year. Adjusted diluted earnings per share were $0.43. On a
constant currency basis, adjusted earnings per share were $0.45,
compared to $0.45 in the prior year.
-- Inventory at the end of the quarter was down 26.0% versus the prior
year.
-- The Company repurchased 1,139,256 shares in the third quarter for
approximately $30 million at an average price of $26.33 per share.
"Our proactive efforts, which began eighteen months ago, have gained traction leading to better-than-expected results. This is best demonstrated by solid revenue performance across our portfolio with most brands exceeding our revenue expectations and over-delivering on our operating profit targets for the quarter," stated Mike Stornant, Senior Vice President and Chief Financial Officer. We managed our working capital well, with inventory down 26% at quarter end versus the prior year quarter. We believe the strength of our global brands combined with the continued operational discipline and implementation of the WOLVERINE WAY FORWARD leaves us well positioned to achieve our near-term growth and adjusted operating margin goals. We now expect full-year fiscal 2018 operating margin of 12%, ahead of our originally stated goal.
WOLVERINE WAY FORWARD TRANSFORMATION UPDATE
The Company continued to make progress on its comprehensive portfolio management initiatives including the following items:
-- In addition to the license of the Stride Rite brand to Vida Shoes
International and the sale of the Sebago Brand announced earlier in the
third quarter, on September 29, 2017, the Company sold its Department of
Defense contract business and certain associated assets.
-- The Company also continued to make progress in realigning its retail
store fleet under the previously announced Store Restructuring Plan. The
Company has closed 188 stores since the beginning of 2017. The Company
expects an additional 27 store closings before the end of fiscal 2017,
leaving a remaining retail store fleet of approximately 80 stores.
-- The Company continues to prioritize growth and innovation by
accelerating its investments in product innovation, consumer insights,
demand creation, and the digital/social space. The Company also plans to
focus on key international growth markets as it evolves its global
footprint.
FISCAL 2017 OUTLOOK
A strong third quarter, coupled with some stable trends in the business, have resulted in the following update to the Company's full-year 2017 outlook:
-- We are narrowing our revenue outlook to the upper end of our prior range
and now expect reported revenue of $2.340 billion to $2.370 billion.
This is a reported decline of approximately 6.2% to 5.0%, but underlying
revenue is expected to be within the range of flat to growth of 1.5%,
reflecting approximately $160.0 million revenue impact from retail store
closures and the Stride Rite transition.
-- Reported operating margin in the range of 5.0% to 5.4% and adjusted
operating margin in the range of 10.6% to 10.9%, resulting from
operational excellence initiatives focused on supply chain optimization,
omnichannel transformation, and operational efficiencies. Fiscal 2016
adjusted operating margin was 8.5%.
-- Reported diluted earnings per share in the range of $0.76 to $0.81
compared to $0.89 in fiscal 2016. Adjusted diluted earnings per share
are now expected in the range of $1.60 to $1.65 compared to $1.36 in
fiscal 2016 adjusted on the same basis. On a constant currency basis,
adjusted earnings per share in the range of $1.67 to $1.72.
FISCAL YEAR CALENDAR CHANGE
Prior to fiscal 2017, the Company reported its quarterly results of operations on the basis of 12-week periods for each of the first three fiscal quarters and a 16 or 17-week period for the fiscal fourth quarter. Beginning in fiscal 2017, the Company's fiscal year is comprised of 13-week quarters for each of the first three fiscal quarters and a 13 or 14-week period for the fiscal fourth quarter. There is no change to the Company's fiscal year-end date. References to the "quarter ended" or "third quarter" refer to the 13-week period ended September 30, 2017 or the 12-week period ended September 10, 2016.
NON-GAAP FINANCIAL MEASURES
This earnings release contains certain non-GAAP financial measures. References to "underlying" revenue indicate reported revenue adjusted for the impact of foreign exchange, closed retail stores, the transition of Stride Rite(®) to a license business model and the impact of the additional week of operations. Measures referred to as "adjusted" financial results exclude restructuring and impairment costs, organizational transformation costs which include gains or losses from divestitures, debt extinguishment and other costs, and the impact of the additional week of operations. The company has provided a reconciliation of the above of non-GAAP financial measures to the most directly comparable GAAP financial measure.
EARNINGS CALL INFORMATION
The Company will host a conference call today at 8:30 a.m. Eastern Time to discuss these results and current business trends. The conference call will be broadcast live and accessible under the "Investor Relations" tab at wolverineworldwide.com. A replay of the conference call will be available at the Company's website for a period of approximately 30 days.
ABOUT WOLVERINE WORLDWIDE
With a commitment to service and product excellence, Wolverine World Wide, Inc. is one of the world's leading marketers and licensors of branded casual, active lifestyle, work, outdoor sport, athletic, children's and uniform footwear and apparel. The Company's portfolio of highly recognized brands includes: Merrell(®), Sperry(®), Hush Puppies(®), Saucony(®), Wolverine(®), Keds(®), Stride Rite(®), Chaco(®), Bates(®), and HYTEST(®). The Company also is the global footwear licensee of the popular brands Cat(®) and Harley-Davidson(®). The Company's products are carried by leading retailers in the U.S. and globally in approximately 200 countries and territories. For additional information, please visit our website, wolverineworldwide.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements, including statements regarding: the Company's ability to successfully execute key strategic initiatives, elevate brands with consumers, and deliver product innovation, organic and global growth and operational efficiencies; future store closures and the effect of these closures; the ability to complete the novation of the Department of Defense contracts in 2017 or at all; the Company's fiscal 2017 outlook and guidance; and the Company's outlook regarding 2018 adjusted operating margin. In addition, words such as "guidance," "estimates," "anticipates," "believes," "forecasts," "step," "plans," "predicts," "focused," "projects," "is likely," "expects," "intends," "should," "will," "confident," variations of such words, and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions ("Risk Factors") that are difficult to predict with regard to timing, extent, likelihood, and degree of occurrence. Risk Factors include, among others: changes in general economic conditions, employment rates, business conditions, interest rates, tax policies and other factors affecting consumer spending in the markets and regions in which the Company's products are sold; the inability for any reason to effectively compete in global footwear, apparel and consumer-direct markets; the inability to maintain positive brand images and anticipate, understand and respond to changing footwear and apparel trends and consumer preferences; the inability to effectively manage inventory levels; increases or changes in duties, tariffs, quotas or applicable assessments in countries of import and export; foreign currency exchange rate fluctuations; currency restrictions; capacity constraints, production disruptions, quality issues, price increases or other risks associated with foreign sourcing; the cost and availability of raw materials, inventories, services and labor for owned and contract manufacturers; labor disruptions; changes in relationships with, including the loss of, significant wholesale customers; the failure of the U.S. Department of Defense to exercise future purchase options or award new contracts, or the cancellation or modification of existing contracts by the Department of Defense or other military purchasers; risks related to the significant investment in, and performance of, the Company's consumer-direct operations; risks related to expansion into new markets and complementary product categories as well as consumer-direct operations; the impact of seasonality and unpredictable weather conditions; changes in general economic conditions and/or the credit markets on the Company's distributors, suppliers and customers; increase in the Company's effective tax rates; failure of licensees or distributors to meet planned annual sales goals or to make timely payments to the Company; the risks of doing business in developing countries, and politically or economically volatile areas; the ability to secure and protect owned intellectual property or use licensed intellectual property; the impact of regulation, regulatory and legal proceedings and legal compliance risks, including compliance with federal, state and local laws and regulations relating to the protection of the environment, environmental remediation and other related costs, and litigation or other legal proceedings relating to the protection of the environment or environmental effects on human health; the potential breach of the Company's databases, or those of its vendors, which contain certain personal information or payment card data; problems affecting the Company's distribution system, including service interruptions at shipping and receiving ports; strategic actions, including new initiatives and ventures, acquisitions and dispositions, and the Company's success in integrating acquired businesses, and implementing new initiatives and ventures; the risk of impairment to goodwill and other acquired intangibles; the success of the Company's consumer-direct realignment initiatives; changes in future pension funding requirements and pension expenses; and additional factors discussed in the Company's reports filed with the Securities and Exchange Commission and exhibits thereto. The foregoing Risk Factors, as well as other existing Risk Factors and new Risk Factors that emerge from time to time, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Furthermore, the Company undertakes no obligation to update, amend, or clarify forward-looking statements.
WOLVERINE WORLD WIDE, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(In millions, except per share data)
13 Weeks Ended 12 Weeks Ended 39 Weeks Ended 36 Weeks Ended
September 30, September 10, September 30, September 10,
2017 2016 2017 2016
---- ---- ---- ----
Revenue $581.3 $603.7 $1,771.4 $1,765.0
Cost of goods sold 349.4 366.1 1,070.8 1,068.1
Restructuring costs 1.2 0.3 8.3 4.2
--- --- --- ---
Gross profit 230.7 237.3 692.3 692.7
Gross margin 39.7% 39.3% 39.1% 39.2%
Selling, general and administrative expenses 172.4 167.4 529.6 534.5
Restructuring and impairment costs 23.0 0.9 65.6 13.4
---- --- ---- ----
Operating expenses 195.4 168.3 595.2 547.9
Operating expenses as a % of revenue 33.6% 27.9% 33.6% 31.0%
Operating profit 35.3 69.0 97.1 144.8
Operating margin 6.1% 11.4% 5.5% 8.2%
Interest expense, net 8.6 8.6 23.4 24.9
Debt extinguishment and other costs - 0.5 - 0.5
Other expense (income), net (0.4) - 3.4 1.0
---- --- --- ---
Total other expenses 8.2 9.1 26.8 26.4
Earnings before income taxes 27.1 59.9 70.3 118.4
Income tax expense 4.3 11.7 10.2 28.5
Effective tax rate 15.9% 19.5% 14.6% 24.1%
Net earnings 22.8 48.2 60.1 89.9
Less: net earnings (loss) attributable to (0.4) - (0.5) 0.3
noncontrolling interests
Net earnings attributable to Wolverine World Wide, $23.2 $48.2 $60.6 $89.6
Inc.
Diluted earnings per share $0.24 $0.49 $0.62 $0.91
===== ===== ===== =====
Supplemental information:
Net earnings used to calculate diluted earnings $22.7 $47.2 $59.3 $87.7
per share
Shares used to calculate diluted earnings per 95.8 96.9 96.0 96.3
share
Weighted average shares outstanding 96.1 99.4 96.6 99.4
WOLVERINE WORLD WIDE, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
(In millions)
September 30, September 10,
2017 2016
---- ----
ASSETS
Cash and cash equivalents $342.7 $530.9
Accounts receivables, net 294.5 309.5
Inventories, net 338.8 457.6
Other current assets 44.0 42.6
Total current assets 1,020.0 1,340.6
Property, plant and equipment,
net 142.2 148.8
Goodwill and other indefinite-
lived intangibles 1,103.0 1,115.2
Other non-current assets 153.5 154.4
Total assets $2,418.7 $2,759.0
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and other
accrued liabilities $278.0 $330.1
Current maturities of long-
term debt 48.8 393.5
Borrowings under revolving
credit agreements and other
short-term notes 3.7 1.2
Total current liabilities 330.5 724.8
Long-term debt 744.2 657.7
Other non-current liabilities 333.9 335.8
Stockholders' equity 1,010.1 1,040.7
Total liabilities and
stockholders' equity $2,418.7 $2,759.0
======== ========
WOLVERINE WORLD WIDE, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)
39 Weeks Ended 36 Weeks Ended
September 30, September 10,
2017 2016
-------------- --------------
OPERATING ACTIVITIES:
Net earnings $60.1 $89.9
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation and
amortization 28.0 30.0
Stock-based compensation
expense 19.1 15.3
Excess tax benefits from
stock-based compensation - (0.4)
Pension and SERP expense 11.2 7.3
Restructuring and impairment
costs 73.9 17.6
Other (102.3) (17.0)
Changes in operating assets
and liabilities (40.5) 0.5
----- ---
Net cash provided by
operating activities 49.5 143.2
INVESTING ACTIVITIES:
Additions to property, plant
and equipment (28.7) (34.4)
Proceeds from sale of a
business and other assets 38.0 -
Investment in joint venture - (0.5)
Other (4.1) 10.4
Net cash provided by (used
in) investing activities 5.2 (24.5)
FINANCING ACTIVITIES:
Net borrowings under
revolving credit agreements
and other short-term notes 0.3 1.2
Borrowings of long-term debt - 250.0
Payments on long-term debt (26.2) (5.7)
Payments of debt issuance
and debt extinguishment
costs (0.1) (3.4)
Cash dividends paid (17.4) (17.7)
Purchase of common stock for
treasury (51.5) (11.4)
Purchases of shares under
employee stock plans (5.2) (4.7)
Proceeds from the exercise
of stock options 11.9 5.6
Excess tax benefits from
stock-based compensation - 0.4
Contributions from
noncontrolling interests 0.8 2.2
Net cash provided by (used
in) financing activities (87.4) 216.5
Effect of foreign exchange
rate changes 5.6 1.6
--- ---
Increase (decrease) in cash
and cash equivalents (27.1) 336.8
Cash and cash equivalents at
beginning of the year 369.8 194.1
----- -----
Cash and cash equivalents at
end of the period $342.7 $530.9
====== ======
The following tables contain information regarding the non-GAAP adjustments used by the Company in the presentation of its financial results:
WOLVERINE WORLD WIDE, INC.
Q3 2017 RECONCILIATION TABLES
RECONCILIATION OF REPORTED REVENUE GROWTH TO
UNDERLYING REVENUE GROWTH*
(Unaudited)
(In millions)
GAAP Impact of As Adjusted Foreign
Exchange
Impact Adjustments (2) As Adjusted on
Basis Additional Basis a Constant
Currency Basis
Week (1)
Revenue - Fiscal 2017 Q3 581.3 $581.3 $(3.2) $578.1
Growth (3.7)% (8.0)% 1.1%
Revenue - Fiscal 2016 Q3 $603.7 $28.2 $631.9 $(59.9) $572.0
(1) Given the change in the quarterly calendar resulting in the third quarter of fiscal 2017 containing 13 weeks ending September 30, 2017 and the third quarter of fiscal 2016 containing 12 weeks ending September 10, 2016, the Company quantified the impact of the change including the additional week for a better comparison
to the third quarter of fiscal 2017.
(2) Adjustments include the estimated impact from retail store closures and the transition of Stride Rite(R) to a license business model.
RECONCILIATION OF REPORTED GROSS MARGIN TO ADJUSTED
GROSS MARGIN ON A CONSTANT CURRENCY BASIS*
(Unaudited)
(In millions)
GAAP Impact of Restructuring Foreign As Adjusted on
Additional Costs Exchange a Constant
Week (1) Impact Currency
Basis Basis
----- -----
Gross Profit - Fiscal 2017 Q3 $230.7 $1.2 $1.8 $233.7
Gross margin 39.7% 40.4%
Gross Profit - Fiscal 2016 Q3 $237.3 $9.6 $0.3 $247.2
Gross margin 39.3% 39.1%
(1) Given the change in the quarterly calendar resulting in the third quarter of fiscal 2017 containing 13 weeks ending September 30, 2017 and the third quarter of fiscal 2016 containing 12 weeks ending September 10, 2016, the Company quantified the
impact of the change including the additional week for a better comparison to the third quarter of fiscal 2017.
RECONCILIATION OF REPORTED OPERATING MARGIN TO ADJUSTED
OPERATING MARGIN ON A CONSTANT CURRENCY BASIS*
(Unaudited)
(In millions)
GAAP Impact of Foreign Restructuring Organizational As Adjusted on
Exchange and Transformation a Constant
Impact Impairment Costs (2) Currency Basis
Costs
Basis Additional
Week (1)
Operating Profit - $35.3 $2.5 $24.2 $7.0 $69.0
Fiscal 2017 Q3
Operating margin 6.1% 11.9%
Operating Profit -Fiscal
2016 Q3 $69.0 $(4.0) $1.2 $ - $66.2
Operating margin 11.4% 10.5%
(1) Given the change in the quarterly calendar resulting in the third quarter of fiscal 2017 containing 13 weeks ending September 30, 2017 and the third quarter of fiscal 2016 containing 12 weeks ending September 10, 2016, the Company quantified the impact of the change including the additional
week for a better comparison to the third quarter of fiscal 2017.
(2) Organizational transformation costs include third party consulting costs, gains and losses related to divestitures and costs related to the Company's distribution center optimization.
RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED
DILUTED EPS ON A CONSTANT CURRENCY BASIS*
(Unaudited)
GAAP Basis Adjustments (1) As Adjusted Foreign As Adjusted
EPS EPS Exchange EPS On a
Impact Constant
Currency Basis
--------------
Fiscal 2017 Q3 $0.24 $0.19 $0.43 $0.02 $0.45
Fiscal 2016 Q3 $0.49 $(0.04) $0.45
(1) Fiscal 2017 adjustments include the impact of restructuring and impairment costs and organizational transformation costs. Fiscal 2016 adjustments include the impact of restructuring and impairment costs and the impact of the quarterly
calendar change.
2017 GUIDANCE RECONCILIATION TABLES
RECONCILIATION OF FISCAL 2017 FULL-YEAR REPORTED REVENUE GROWTH
GUIDANCE TO UNDERLYING REVENUE GROWTH GUIDANCE*
(Unaudited)
(In millions)
GAAP Basis Foreign
Exchange
Impact Adjustments (1) Underlying Full-
Year Revenue
Full-Year Revenue
-----------------
Fiscal 2017 Revenue Guidance $ 2,340 - 2,370 $ - $ 2,340 - 2,370
Fiscal 2016 Revenue $2,494.6 $(160.0) $2,334.6
Percentage growth (decline) (6.2) - (5.0)% 0.2 - 1.5%
(1) Adjustments include the estimated impact from retail store closures and the transition of Stride Rite(R) to a license business model.
RECONCILIATION OF FISCAL 2017 FULL-YEAR REPORTED OPERATING PROFIT
GUIDANCE TO ADJUSTED OPERATING PROFIT GUIDANCE*
(Unaudited)
(In millions)
GAAP Basis Adjustments
(1) As Adjusted
Full-Year Operating Profit Full-Year Operating Profit
-------------------------- --------------------------
Fiscal 2017 Operating Profit Guidance $ 117 - 128 $130.0 $ 247 - 258
Operating Margin 5.0 - 5.4% 10.6 - 10.9%
(1) Adjustments include the estimated impact from restructuring and impairment costs, organizational transformation costs and $7.4 million of store inventory mark-downs
related to retail stores closed as part of the 2016 Plan
RECONCILIATION OF FISCAL 2016 REPORTED OPERATING
MARGIN TO ADJUSTED OPERATING MARGIN*
(Unaudited)
(In millions)
GAAP Basis Restructuring Organizational
and Transformation
Impairment Costs (1)
Costs As Adjusted
Full-Year Full-Year
Operating Operating
Profit Profit
---------- ----------
Operating Profit - Fiscal 2016 $159.9 $50.3 $2.2 $212.4
Operating margin 6.4% 8.5%
(1) Organizational transformation costs include third party consulting costs and costs related to the Company's distribution center optimization.
RECONCILIATION OF FISCAL 2017 FULL-YEAR DILUTED EPS GUIDANCE TO ADJUSTED DILUTED
EPS ON A CONSTANT CURRENCY BASIS GUIDANCE*
(Unaudited)
GAAP Basis Adjustments (1) As Adjusted Foreign
Exchange
Impact As Adjusted
Full-Year 2017 Full-Year 2017 Full-Year 2017
Constant
Currency Basis
--------------
Diluted earnings per share guidance $ 0.76 - 0.81 $0.84 $ 1.60 - 1.65 $0.07 $ 1.67 - 1.72
(1) Adjustments include estimated restructuring and impairment costs, organizational transformation costs and $7.4 million of store inventory mark-downs related to retail stores closed as part of the 2016 Plan.
RECONCILIATION OF FISCAL 2016 REPORTED REVENUE AND EPS
TO ADJUSTED REVENUE AND ADJUSTED EPS*
(Unaudited)
(In millions)
Fiscal 2016
Q1 Q2 Q3 Q4 YTD
--- --- --- --- ---
GAAP Basis Fiscal 2016 - Revenue $577.6 $583.7 $603.7 $729.6 $2,494.6
Impact of Additional Week - Revenue (1) 43.2 35.5 28.2 (106.9) -
Revenue on an Adjusted Basis $620.8 $619.2 $631.9 $622.7 $2,494.6
====== ====== ====== ====== ========
GAAP Basis Fiscal 2016 - Diluted EPS $0.18 $0.24 $0.49 $(0.02) $0.89
Impact of Additional Week - EPS (1) 0.02 0.01 (0.04) 0.01 -
Impact of Restructuring and Impairment Costs 0.11 0.01 - 0.35 0.47
EPS on an Adjusted Basis $0.31 $0.26 $0.45 $0.34 $1.36
===== ===== ===== ===== =====
Fiscal 2016 weeks in operations 12 12 12 16 52
Fiscal 2016 - Adjusted weeks in operations 13 13 13 13 52
(1) Given the first three fiscal 2016 quarters had 12 weeks and the fourth quarter had 16 weeks of operations compared to fiscal 2017 where each quarter has 13 weeks of operations, the Company quantified the impact of adjusting each fiscal 2016 quarter to allow for a better comparison to fiscal 2017.
* To supplement the consolidated
financial statements presented in
accordance with Generally Accepted
Accounting Principles ("GAAP"), the
Company describes what certain
financial measures would have been
if restructuring and impairment
costs, incremental store inventory
mark-downs and organizational
transformation costs which include
gains or losses from divestitures
were excluded. The Company also
describes underlying revenue, which
excludes the impact of foreign
exchange, the impact of retail
store closures, the transition of
Stride Rite(R) to a license
business model and the impact of
the additional week of operations
included within the quarterly
calendar change. The Company
believes these non-GAAP measures
provide useful information to both
management and investors to
increase comparability to the prior
period by adjusting for certain
items that may not be indicative of
core operating measures and to
better identify trends in our
business. The adjusted financial
results are used by management to,
and allow investors to, evaluate
the operating performance of the
Company on a comparable basis. The
Company evaluates results of
operations on both a reported and a
constant currency basis. The
constant currency presentation,
which is a non-GAAP measure,
excludes the impact of fluctuations
in foreign currency exchange rates.
The Company believes providing
constant currency information
provides valuable supplemental
information regarding results of
operations, consistent with how the
Company evaluates performance. The
Company calculates constant
currency by converting the current-
period local currency financial
results using the prior period
exchange rates and comparing these
adjusted amounts to our current
period reported results. Management
does not, nor should investors,
consider such non-GAAP financial
measures in isolation from, or as a
substitution for, financial
information prepared in accordance
with GAAP. A reconciliation of all
non-GAAP measures included in this
press release, to the most directly
comparable GAAP measures, are found
in the financial tables above.
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SOURCE Wolverine World Wide, Inc.
