Merrell is now Wolverines leading profit-producing brand, growing over sevenfold since WWW acquired the brand five years ago.
Total Wolverine World Wide, Inc. revenues increased 14.9% to 827.1 million for 2002. The Merrell outdoor/casual lifestyle brand saw a 30% increase in revenues for the year.
Earnings for fiscal 2002 grew to $47.9 million, or $1.15 per share, a 7.5% EPS increase over the $1.07 per share reported in 2001.
The recently acquired CAT and Merrell European operations accounted for more than two-thirds of the company’s year-over-year revenue increase while generating profits slightly above the “breakeven” level.
The acquisitions impacted SG&A by 20 basis points. Inventories and accounts receivable at year-end, on a pre-acquisition basis, declined 16.6% and 7.6% respectively. Including acquisitions, inventories decreased 4.5% while A/R grew only 2.6% from the prior year-end.
Fourth quarter revenues increased 16.7% to $261.4 million. Fourth quarter 2002 earnings increased to $17.1 million, or $0.42 EPS, a 10.5% EPS increase from the Q4 2001, and $0.02 EPS higher than First Call estimate.
The company anticipates 2003 revenues to be in the $875 to $885 million range, and earnings improving to a range of $1.21 to $1.24 per share.
KEY METRICS:
- Total order backlog is up 19%
- First half order backlog increased 15%
- Full year gross margins were down 10 bps to 35.6%
- Full year SG&A grew 100 basis points to 26.3% due to startup investment for Merrell Europe.
>>> The Wolverine juggernaut rolls on! Maybe the decision not to sell most of the athletic channel wasnt such a bad one after all
