“The Company delivered strong double-digit revenue growth and exceptional earnings leverage, despite the increased supply chain disruption caused by Vietnam factory closures and global logistics delay. Merrell was hit hardest by Vietnam factory closures but still delivered mid-single-digit growth. Saucony and Sperry both drove over 40% revenue growth. The unplanned supply chain disruptions resulted in at least a $60 million negative revenue impact in Q3. Demand for our brands remains very strong as evidenced by continued strength in sell-through trends at retail and a robust order book that extends into Q3 2022. We remain bullish on our outlook for the future in light of these trends and the composition of our portfolio which over-indexes on performance categories like hiking, running, and work. We are also excited about the addition of Sweaty Betty to our portfolio – a fast-growing brand that enhances the digital and apparel capabilities of the Company”, commented Blake W. Krueger, Wolverine Worldwide’s Chairman and Chief Executive Officer.

Third Quarter Results

(The following third-quarter results include the brand Sweaty Betty, from the date that it was acquired by Wolverine Worldwide, on the 2^nd of August 2021, until the end of the quarter)

In the third quarter of 2021, which ended on the 2^nd of October, Wolverine reported revenue increased by 29.1%, as compared to the same period of 2020, reaching 636.7 million US dollars. On a constant currency basis, revenue grew by 28.2%.

E-commerce reported revenue was up by 45% in the third quarter of 2021, as compared to the same quarter of 2020, and up by 126%, as compared to the third quarter of 2019.

In the third quarter of the current fiscal year, reported gross margin corresponded to 43.2%, and adjusted gross margin was of 44.6%, on a comparable basis to similar period in the prior year. In this period, reported operating margin was of 6.7%, as compared to 8.6% in similar period last year, and adjusted operating margin was of 12.0%, as compared to 10.6% in the third quarter of 2020.

Reported diluted earnings per share were of 0.00 dollars, as compared to reported diluted earnings per share of 0.27 dollars in the previous year. Adjusted diluted earnings per share were of 0.62 dollars, and, on a constant currency basis, of 0.61 dollars, as compared to 0.35 dollars last year.

Full-Year 2021 Outlook

For the fiscal year of 2021, the company now expects revenue of approximately 2.4 billion dollars. Reported diluted earnings per share should be in the range of 1.16 dollars to 1.21 dollars, and adjusted diluted earnings per share are expected to be in the range of 2.05 dollars to 2.10 dollars.