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Jul 01, 2023
Wolverine Q2 2023 Earnings Report
Reported financial results for the second quarter and updated full-year 2023 outlook.
Key Takeaways
Wolverine Worldwide's Q2 2023 revenue was $589.1 million, a 17.4% decrease year-over-year, or 17.3% on a constant currency basis. Diluted earnings per share decreased by 80.4% to $0.30. The company updated its full-year 2023 outlook, expecting revenue from ongoing business to decline approximately 10.7% to 10.0% versus the prior year.
Revenue decreased by 17.4% compared to the prior year.
Gross margin was 38.7%, down from 43.0% in the prior year.
Diluted earnings per share decreased to $0.30 from $1.53 in the prior year.
The company expects at least $70 million in savings for 2023 from Profit Improvement Office.
Revenue by Segment
Forward Guidance
Wolverine Worldwide expects revenue from its ongoing business to be in the range of $2.26 billion to $2.28 billion, representing a decline of approximately 10.7% to 10.0% versus the prior year. Diluted earnings per share are expected to be between $0.43 to $0.53 and adjusted diluted earnings per share are expected to be between $0.45 to $0.55.
Positive Outlook
- Gross margin is expected to be approximately 39.4% and adjusted gross margin is expected to be approximately 40.0%
- Operating margin is expected to be approximately 4.8%, and adjusted operating margin is expected to be approximately 5.0%
- The effective tax rate is expected to be approximately 18.2%.
- Diluted weighted average shares are expected to be approximately 79.4 million.
- Net Debt at year-end is expected to be approximately $850 million resulting in bank-defined leverage of approximately 3x.
Challenges Ahead
- Revenue from our ongoing business is expected to be in the range of $2.26 billion to $2.28 billion, representing a decline of approximately 10.7% to 10.0% versus the prior year
- Diluted earnings per share are expected to be between $0.43 to $0.53 and adjusted diluted earnings per share are expected to be between $0.45 to $0.55. These full-year EPS expectations include an approximate $0.11 negative impact from foreign currency exchange rate fluctuations.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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