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Sep 26, 2020
Wolverine Q3 2020 Earnings Report
Wolverine Worldwide's third quarter results significantly exceeded expectations, driven by the strength of its portfolio and brand positioning.
Key Takeaways
Wolverine Worldwide reported strong Q3 2020 results, exceeding expectations with revenue at $493.1 million and EPS at $0.27. Saucony and Chaco delivered double-digit revenue growth, while Merrell and work brands showed meaningful sequential improvement. The company's eCommerce business grew over 56%.
Revenue reached $493.1 million, a decrease of 14.1% year-over-year.
Owned eCommerce revenue increased by 56.4% compared to the previous year.
Reported diluted earnings per share (EPS) were $0.27, compared to $0.57 in the prior year.
Cash flow from operating activities was $96.5 million, a significant increase from $12.1 million in the prior year.
Revenue by Segment
Forward Guidance
The company expects headwinds from the pandemic to persist in the near-term and anticipates Q4 revenue to be down no more than 25% year-over-year. Investments will continue to accelerate growth in Q1 2021.
Positive Outlook
- Strong digital strategy
- Improved visibility to wholesale demand
- Return to meaningful growth expected in Q1 2021
- Ongoing momentum of key brands
- Continued investment behind key brands
Challenges Ahead
- Headwinds caused by the pandemic will persist in the near-term
- Fourth quarter revenue expected to be down no more than 25% year-over-year
- Effects of a partial shift in revenue from international business into the first quarter of 2021
- Uncertainty related to the duration and scope of the pandemic
Historical Earnings Impact
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Avg. Return Before/After Earnings
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