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April 22, 2020, 6:50 a.m. EDT

Hush Puppies parent Wolverine tops profit Q1 profit estimates as sales fall short

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By Ciara Linnane

Hush Puppies parent Wolverine World Wide Inc. /zigman2/quotes/209231729/composite WWW +0.16% announced a series of measures Wednesday to preserve cash during the coronavirus pandemic as it posted first-quarter earnings that beat on profit but fell short on sales. The Rockford, Michigan-based company, which also owns the Keds and Wolverine brands, said it had net earnings of $12.8 million, or 16 cents a share, in the quarter, down from $40.6 million, or 43 cents a share, in the year-earlier period. Adjusted per-share earnings came to 28 cents, ahead of the 15 cents FactSet consensus. Revenue fell 16.1% to $439.3 million, below the $455 million FactSet consensus. The company said cash-saving measures are expected to save $500 million in 2020, and lead to $150 million to $200 million of operating cash flow. The company has drawn down the remaining $367 million in its revolving credit line, reduced inventory receipts by about $300 million and postponed $25 million of capex planned for 2020 2020 until business conditions stabilize. It has further reduced operational expenses by furloughing workers, and cutting compensation for its executives and board. The company had $472.6 million of cash on hand at quarter-end. Shares were not yet active premarket, but have fallen 44% in the year to date, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.02% has fallen 15%.

/zigman2/quotes/209231729/composite
US : U.S.: NYSE
$ 25.05
+0.04 +0.16%
Volume: 306,681
Aug. 14, 2020 4:00p
P/E Ratio
36.24
Dividend Yield
1.60%
Market Cap
$2.05 billion
Rev. per Employee
$605,189
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/zigman2/quotes/210599714/realtime
US : S&P US
3,372.85
-0.58 -0.02%
Volume: 1.71B
Aug. 14, 2020 5:11p
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