On Oct. 5, Wolverine World Wide
- Sales of $279.1 million fell a little short of Street expectations. But it didn't matter: EPS of $0.42 was up more than 12% over the last year's Q3 and also ahead of analyst estimates. Investors responded by bidding up the stock by more than 6%.
- Gross margin saw notable improvement, but it's still a few points below Wolverine's major competitors.
- Growth continued to slow sequentially, but the improving balance sheet -- the progress illustrated by a 26% reduction in long-term debt -- indicates good cash management. That could be good news for investors.
(Figures in thousands, except per-share data)
Income Statement Highlights (What's this?)
|
Avg. Est. |
Q3 2005 |
Q3 2004 |
% Change |
|
|---|---|---|---|---|
|
Sales |
$279,330 |
$279,116 |
$260,897 |
+7.0% |
|
Net Profit |
-- |
$24,634 |
$21,946 |
+12.2% |
|
EPS |
$0.41 |
$0.42 |
$0.37 |
+13.5% |
Margin Checkup (What's this?)
|
Q3 2005 |
Q3 2004 |
% Change |
|
|---|---|---|---|
|
Gross Margin |
38.93% |
37.63% |
+1.30% |
|
Op. Margin |
13.10% |
12.64% |
+0.46% |
|
Net Margin |
8.83% |
8.41% |
+0.41% |
Balance Sheet Highlights (What's this?)
|
Assets |
Q3 2005 |
Q3 2004 |
% Change |
|---|---|---|---|
|
Cash+ ST Invest. |
$47,794 |
$39,136 |
+22.1% |
|
Inventory |
$196,397 |
$182,018 |
+7.9% |
|
Accounts Rec. |
$205,255 |
$191,926 |
+6.9% |
|
Liabilities |
Q3 2005 | Q3 2004 |
% Change |
|---|---|---|---|
|
Long-Term Debt |
$32,154 |
$43,894 |
-26.7% |
|
Accounts Pay. |
$123,653 |
$121,388 |
+1.9% |
Cash Flow Highlights (What's this?)
No cash flow data provided. (Boo!)
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Deckers Outdoor is a Motley Fool Hidden Gems recommendation.
Fool contributor Tim Beyers didn't own shares in any of the companies mentioned in this story at the time of publication. You can find out what is in his portfolio by checking Tim's Fool profile, which is here . The Motley Fool has an ironclad disclosure policy .
