Loading...
•
Jul 02, 2022
Wolverine Q2 2022 Earnings Report
Delivered record revenue and strong earnings, exceeding EPS expectations.
Key Takeaways
Wolverine Worldwide reported record second-quarter revenue, driven by growth in Merrell and international business, despite headwinds from customer inventory, a stronger US dollar, and supply chain delays. The company is revising its full-year outlook to account for higher promotional activity and elevated inventory in wholesale channels.
Second quarter revenue grew 13% year over year.
Merrell brand grew 14% year over year.
International business grew 45% year over year.
Operating margin was better than expected.
Revenue by Segment
Forward Guidance
The Company expects revenue to be in the range of $2.740 billion to $2.790 billion, representing growth of approximately 14.0% to 16.0%. Diluted earnings per share are expected to be between $2.62 to $2.72 and adjusted diluted earnings per share are expected to be between $2.10 to $2.20.
Positive Outlook
- Revenue is expected to grow approximately 14.0% to 16.0%.
- Diluted earnings per share are expected to be between $2.62 to $2.72.
- Adjusted diluted earnings per share are expected to be between $2.10 to $2.20.
- Gross margin is expected to be approximately 42.5%.
- Operating margin is expected to be approximately 11.5%.
Challenges Ahead
- Foreign currency exchange rate fluctuations are expected to have approximately $72.0 million (or 3.0%) negative impact on full-year reported growth.
- Foreign currency exchange rate fluctuations are expected to have a $0.11 negative impact on full-year EPS.
- Increased promotional and markdown cadence.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...