Wolverine profit tops forecast, shares sink

Tag : down shoe
United States - (Writes through; Adds NEW YORK dateline, stock activity)
NEW YORK (Reuters) - Wolverine World Wide Inc reported ahigher-than-expected quarterly profit Wednesday, citing leanerinventories, but its 2008 outlook disappointed investors, who sentthe shoe maker's shares down as much as 11.6 percent.
The company, whose brands include Wolverine, Merrell and HushPuppies, said net income rose to $16.8 million, or 33 cents pershare, in the second quarter, ended June 14, from $15.5 million, or28 cents per share, a year earlier.
Revenue rose to $267.4 million from $250.3 million a year ago.
Analysts on average had expected profit of 31 cents per share onrevenue of $258.2 million, according to Reuters Estimates.
Wolverine, based in Rockford, Michigan, affirmed its full-yearoutlook, which calls for earnings per share of $1.83 to $1.90 andrevenue of $1.23 billion to $1.26 billion.
Since Wolverine posted higher-than-expected profit in the secondquarter but failed to raise its full-year outlook, it essentiallymeans the company is lowering its view for the back half of theyear, said Wedbush Morgan Securities analyst Jeff Mintz.
Wolverine also said on a conference call with analysts that revenuegrowth in the second half of the year would be lower than the firsthalf, Mintz said. He said he expected the shares to fall but wassurprised about the magnitude of the drop.
"I think in this environment, with everybody being extremelynervous about the consumer, consumer stocks get quickly punishedfor whatever they do -- or whatever they don't do," Mintz said.
Wolverine shares were down $1.75, or 6.6 percent at $24.82 on theNew York Stock Exchange. (Reporting by Martinne Geller; Editing bySteve Orlofsky) Copyright 2008 Reuters, Click for Restriction