Wolverine World has a market cap of $1.83 billion; its shares were traded at around $38.14 with a P/E ratio of 15.2 and P/S ratio of 1.3. The dividend yield of Wolverine World stocks is 1.3%. Wolverine World had an annual average earning growth of 10% over the past 10 years. GuruFocus rated Wolverine World the business predictability rank of 3.5-star.
Highlight of Business Operations:Revenue for fiscal year 2011 increased $160.6 million from fiscal year 2010, to $1.409 billion. The growth was driven by double digit percentage increases in revenue for all three branded footwear, apparel and licensing operating groups. Revenue for the other business units increased 3.1% for fiscal year 2011. Changes in foreign exchange rates increased reported revenue by $17.3 million. International revenue represented 40.2% of total reported revenue in fiscal year 2011 compared to 38.4% in fiscal year 2010.
Revenue in fiscal year 2010 increased $147.4 million, to $1.249 billion. The growth was driven by increases in revenues for all three branded footwear, apparel and licensing operating groups and the Companys other business units. The Outdoor Group and Heritage Group led the revenue growth, with revenues increasing 12.3% and 15.3%, respectively, while revenues for the other business units increased 19.1%. Changes in foreign exchange rates increased reported revenue by $4.3 million. International revenue represented 38.4% of total revenue in fiscal year 2010 compared to 37.3% in fiscal year 2009.
Cash and cash equivalents of $140.0 million as of December 31, 2011 were $10.4 million lower than the balance at January 1, 2011. The decrease was due to incremental investments in working capital and other operating assets to support future growth, partially offset by improved revenue and profit. Accounts receivable increased 12.0% compared to the end of fiscal year 2010 on a 5.6% increase in fourth quarter revenue and a slight increase in days sales outstanding. No single customer accounted for more than 10% of the outstanding accounts
Minimum royalties are based on both fixed obligations and assumptions regarding the consumer price index. Royalty obligations in excess of minimum requirements are based upon future sales levels. In accordance with these agreements, the Company incurred royalty expense of $3,270, $3,028, and $2,861 for 2011, 2010, and 2009, respectively.
The terms of certain license agreements also require the Company to make advertising expenditures based on the level of sales. In accordance with these agreements, the Company incurred advertising expense of $3,273, $2,998, and $2,682 for fiscal years 2011, 2010, and 2009, respectively.
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