“In the third quarter, we delivered better-than-expected revenue and earnings – led by Merrell and Saucony outpacing our forecast – as we continue to make progress on our plan to turnaround and transform the company for the future. We drove another quarter of record gross margin and more than doubled earnings versus last year. Today, we are moving forward with a stronger platform for growth…”, stated Chris Hufnagel, President and Chief Executive Officer at Wolverine Worldwide.

Wolverine Worldwide has reported results for the third quarter of fiscal 2024. On a constant currency (cc) basis, total revenue decreased by 7.4%, as compared to the same period in 2023 (excluding the impact of discontinued businesses). By segment, sales in the active group decreased the least, respectively by 3.6% (cc), while revenue of the work group fell by 10.8% (cc) year-over-year.

Nonetheless, financial metrics partially offset the decreased revenue. Gross margin increased by 450 basis points, on a comparable basis to the third quarter of 2023, rising from 40.8% to 45.3%. This was mainly due to lower supply chain costs and lower sales of end-of-life inventory.

In the third quarter, operating expenses declined by 12.8%, as compared to the same period of the previous fiscal year. Both operating margin and diluted earnings per share grew, with the former by 280 basis points year-over-year and the latter from 0.11 US dollars to 0.29 US dollars.

Fiscal 2024 Outlook

Wolverine Worldwide expects revenue to be between 1.730 and 1.745 billion US dollars, an increase compared to the previous guidance. This represents a current currency decline of approximately 12.6% to 13.3%, as compared to 2023.

Gross margin remains unchanged from the previous projection and is expected to be at 44.5%, up 460 basis points, on a comparable basis to the last fiscal year. Operating margin is expected to be around 5.8%, slightly lower than the previous outlook of 6.0%.

Hufnagel also commented: “While pleased with the continued progress and early proof points to our strategies, we remain intently focused on driving the business forward to realize the full potential of our brands and delivering better returns to our shareholders”.