Reporting on some preliminary results before and during an investors' conference, Wolverine Worldwide's management indicated that its revenues declined by between 4 and 5 percent in the second quarter. They were flat in terms of local currencies and excluding the phase-out of the Patagonia license and the closure of retail stores. Sales were weaker than expected, especially at Stride Rite, and the company may close more stores than planned. Macroeconomic developments continued to depress sales in Russia, Canada and Latin America. The management confirmed its profit outlook, indicating that it has compensated for the lower sales with higher prices on some products and cuts in discretionary spending. The management remains confident that it can expand with Sperry and Saucony internationally, and that Merrell will resume its growth through increased marketing expenditures.
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