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Jan 02, 2021
Wolverine Q4 2020 Earnings Report
Exceeded fourth-quarter revenue and EPS expectations, powered by owned eCommerce and two largest brands, Merrell and Saucony.
Key Takeaways
Wolverine Worldwide reported better-than-expected results for the fourth quarter. Owned eCommerce revenue grew 50% in 2020, and the company has planned further investment to enable growth of 40% in 2021. The company anticipates meaningful growth in 2021, resulting in revenue approaching 2019 levels for the year.
Reported revenue was $509.6 million, down 16.1% versus the prior year.
Reported gross margin was 40.1%, compared to 37.8% in the prior year.
Adjusted diluted earnings per share were $0.21, and, on a constant currency basis, were $0.22, compared to $0.59 in the prior year.
Cash on hand at the end of the quarter was $347.4 million, compared to $180.6 million in the prior year.
Revenue by Segment
Forward Guidance
Wolverine Worldwide expects the positive momentum of its performance, athletic, outdoor, and work brands to continue in 2021. For the full 2021 fiscal year, the Company expects revenue in the range of $2,190 million to $2,250 million, growth of 22% to 26% versus the prior year, approaching 2019 revenue at the high end of the range. Reported diluted earnings per share are expected to be in the range of $1.75 to $1.90, and adjusted diluted earnings per share are expected to be in the range of $1.90 to $2.05.
Positive Outlook
- Revenue in the range of $2,190 million to $2,250 million, growth of 22% to 26% versus the prior year
- Approaching 2019 revenue at the high end of the range
- Focused on delivering its aspirational target of $500 million in owned eCommerce revenue
- More than double 2019 owned eCommerce revenue
- Reported diluted earnings per share are expected to be in the range of $1.75 to $1.90
Challenges Ahead
- Assumes no meaningful deterioration of current market conditions related to the COVID-19 pandemic during the remainder of 2021.
- The effects of the COVID-19 pandemic on the Company’s business, operations, financial results and liquidity
Historical Earnings Impact
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Avg. Return Before/After Earnings
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