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Dec 31, 2022
Wolverine Q4 2022 Earnings Report
Reported fourth quarter results in-line with guidance and provided outlook for 2023.
Key Takeaways
Wolverine Worldwide reported a 4.6% increase in fourth-quarter revenue, and 8.4% on a constant currency basis. The company improved inventory by over $90 million versus the third quarter. Priorities for 2023 are to fuel growth in the Active Group, sustain positive momentum in the Work Group, and address underperforming brands while further strengthening its financial position.
Revenue of $665.0 million represents growth of 4.6% versus the prior year and growth of 8.4% on a constant currency basis.
International business was especially strong, up 22.2% or 31.9% on a constant currency basis to $281.5 million.
Direct-to-Consumer revenue of $224.4 million was flat compared to the prior year and up 4.8% on a constant currency basis.
Inventory at the end of the quarter was $745.2 million which does not include $43.1 million from held-for-sale businesses, down approximately $90 million versus the previous quarter.
Revenue by Segment
Forward Guidance
Revenue from ongoing business is expected to be in the range of $2.53 billion to $2.58 billion, representing growth of approximately 0.0% to 2.0% and constant currency growth of approximately 1.0% to 3.0%.
Positive Outlook
- Gross margin is expected to be approximately 41.2% and adjusted gross margin is expected to be approximately 42.0%
- Operating margin is expected to be approximately 8.7%, and adjusted operating margin is expected to be approximately 8.5%
- The effective tax rate is expected to be approximately 21.0%.
- Diluted earnings per share are expected to be between $1.50 to $1.70 and adjusted diluted earnings per share are expected to be between $1.40 to $1.60.
- Diluted weighted average shares are expected to be approximately 79.3 million.
Challenges Ahead
- These full-year EPS expectations include an approximate $0.14 negative impact from foreign currency exchange rate fluctuations.
- This outlook assumes no meaningful deterioration of current market conditions related to the impact of the COVID-19 pandemic.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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