World Footwear

Companies

Revenue down by 14.1% at Wolverine

Feb 16, 2021 United States
Revenue down by 14.1% at Wolverine
The Michigan-based footwear giant has announced third quarter revenue down by a two digits rate. E-commerce revenue grew by 56.4% in the period. Management expects return to meaningful growth to take place in the first quarter of FY 2021
“The company’s third quarter results significantly exceeded our expectations, reaffirming the inherent strength of our portfolio and strong brand positioning in winning product categories and distribution channels", commented Blake W. Krueger, Wolverine Worldwide’s Chairman and Chief Executive Officer. “Saucony and Chaco delivered double-digit revenue growth in the quarter compared to the prior year, while Merrell and our work brands drove meaningful sequential revenue improvement versus Q2. Innovative, fresh product paired with compelling storytelling continued to fuel demand, as evidenced by our owned eCommerce business, which grew over 56% compared to last year. Our relentless focus on product design and development of digital capabilities has served the business well and will remain central to our multi-year investment strategy (...) Our strong digital strategy and improved visibility to wholesale demand should enable us to return to meaningful growth in Q1 of 2021”, he concluded.

Third Quarter Review

Reported revenue was 493.1 million US dollars, down by 14.1% versus the prior year. On a constant currency basis, revenue was down by 14.6% versus the prior year. Owned E-commerce revenue grew by 56.4% versus the prior year. Reported gross margin was 41.0%, compared to 42.4% in the prior year. Reported operating margin was 8.6%, compared to 11.9% in the prior year. Adjusted operating margin was 10.6%, compared to 14.1% in the prior year. Reported diluted earnings per share were 0.27 US dollars, compared to earnings per share of 0.57 US dollars in the prior year. Adjusted diluted earnings per share were 0.35 US dollars, and, on a constant currency basis, were 0.34 US dollars, compared to 0.68 US dollars in the prior year.
   
“During the last two quarters, which were significantly impacted by the global pandemic, the Company delivered solid earnings and exceptional cash from operations of over 210 million US dollars. While consumer demand exceeded our expectations during this time, we have been able to service the business at a high level and manage our inventory levels down by 22% compared to last year at quarter-end. We expect that headwinds caused by the pandemic will persist in the near-term and that fourth quarter revenue will be down no more than 25% year-over-year, including the effects of a partial shift in revenue from our international business into the first quarter of 2021. We will continue to invest behind the ongoing momentum of our key brands to enable accelerated growth in the first quarter of 2021”, concluded Mike Stornant, Senior Vice President and Chief Financial Officer.


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