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Wolverine Worldwide reiterates full year outlook

May 18, 2023 United States
Wolverine Worldwide reiterates full year outlook
The US-based company posted a first quarter revenue decline in 2023 of 2.5% year-over-year, but delivered earnings slightly above its expectations, thus reiterating its yearly guidance
“We are pleased with delivering first quarter results in line with guidance which included 15% constant currency revenue growth from our Active Group. Earnings results slightly exceeded our expectations and we made progress on reducing inventory. Our first quarter performance and initiatives we have in place position us to reaffirm our full-year outlook despite a challenging environment”, commented Brendan Hoffman, President and Chief Executive Officer.


First Quarter Results

In the first quarter of fiscal 2023, the company's revenue amounted to 599.4 million US dollars, which reflects a decline of 2.5% (or 0.5% on a constant currency), on a comparable basis to the same period of last year. Moreover, its revenue from the ongoing business totalled 580.4 million US dollars.

By brands, in the first quarter of the year, Merrell's revenue reached 180 million US dollars, up by 17.6% (or by 20.3% on a constant currency) and Saucony's revenue totalled 132.6 million US dollars, up by 21.2% (or by 24.5% on a constant currency), as compared to the same quarter of fiscal 2022.

Instead, on a comparable basis to the first quarter of 2023, Sperry's revenue declined by 13.0% (or by 12.9% on a constant currency basis) to 62.9 million US dollars, Wolverine brand's revenue decreased by 12.1% (or by 12.1% on a constant currency basis) to 51.7 million US dollars and Sweaty Betty's revenue was down by 11.4% (or by 3.1% on a constant currency basis) to 47.5 million US dollars.

Wolverine Worldwide's gross margin in the first three months decreased to 39.4% from 42.5% in the same period of the prior year, “reflecting the sale of higher-cost inventory due to transitory supply chain costs from 2022, the acceleration of end-of-life inventory liquidation, and increased promotions”.

In the three months to the 1st of April, the company's net earnings totalled 19.0 million US dollars, or 0.23 US dollars per diluted share, as compared to net earnings of 9.7 million US dollars, or 0.12 Us dollars per diluted share, registered in a similar period of last year.

Full Year Outlook

For the current fiscal year, the company is expecting its revenue from the ongoing business to range between 2.53 billion US dollars to 2.58 billion US dollars, up by approximately 0.0% to 2.0% over 2022. Moreover, it still anticipates diluted earnings per share in the range of 1.40 US dollars to 1.70 US dollars and adjusted diluted earnings per share between 1.40 US dollars to 1.60 US dollars.


Image Credits: kodaloveov.com

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