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Sep 30, 2023
Wolverine Q3 2023 Earnings Report
Wolverine Worldwide reported third quarter results in line with expectations and accelerated transformation efforts.
Key Takeaways
Wolverine Worldwide reported financial results for the third quarter ended September 30, 2023, achieving revenue and earnings in line with expectations. The company is focused on reshaping its portfolio, reducing inventory, and redesigning the company to become consumer-obsessed brand builders.
Revenue of $527.7 million declined 23.7% versus the prior year, or 24.7% on a constant currency basis.
Gross margin was 40.8% compared to 40.2% in the prior year.
Inventory at the end of the quarter was $563.8 million, down approximately 33% compared to the prior year.
The company is reducing its fourth quarter revenue outlook to a range of $515 million to $525 million and adjusted diluted earnings per share to a range of ($0.30) to ($0.25) for its ongoing business.
Revenue by Segment
Forward Guidance
Fourth quarter brand performance is expected to be mixed across the portfolio. The company is reducing its fourth quarter revenue outlook to a range of $515 million to $525 million and adjusted diluted earnings per share to a range of ($0.30) to ($0.25) for its ongoing business.
Positive Outlook
- The Saucony and Sweaty Betty businesses have stabilized and are showing signs of improvement.
- Driving additional profit improvement benefits.
- Expect the Profit Improvement Office to deliver approximately $215 million of annualized savings in 2024.
- Improving balance sheet metrics.
- On track to achieve year-end inventory target of $490 million.
Challenges Ahead
- Merrell continues to operate in a challenged outdoor category.
- Work Group brands continue to experience headwinds in wholesale demand.
- Reducing fourth quarter revenue outlook to a range of $515 million to $525 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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