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Dec 28, 2024
Wolverine Q4 2024 Earnings Report
Company met guidance, inflected to growth, and issued 2025 outlook.
Key Takeaways
Wolverine Worldwide reported strong Q4 2024 results, exceeding expectations for revenue and earnings and inflecting to growth. The company accomplished its objectives of strengthening the balance sheet, expanding profitability, and sequentially improving revenue trends.
Revenue exceeded expectations inflecting to growth.
Earnings exceeded expectations.
Gross margin improved significantly due to lower supply chain costs, product costs and lower sales of end-of-life inventory.
Inventory decreased by approximately 35.6% compared to the prior year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company expects to build on the momentum gained in 2024 and make continued progress on its transformation in fiscal year 2025. The outlook for 2025 highlights the strength of our focused portfolio and investments to support our brands and strategic initiatives.
Positive Outlook
- Revenue to be approximately $1.795 to $1.825 billion, representing growth of approximately 2.5% to 4.3% compared to the 2024 ongoing business and constant currency growth of approximately 4.7% to 6.5%.
- Gross margin of approximately 45.5%, up 100 basis points compared to 2024.
- Operating margin to be approximately 7.7%, up 190 basis points compared to 2024 operating margin, and adjusted operating margin to be approximately 8.3%, up 80 basis points compared to 2024 adjusted operating margin for our ongoing business.
- The effective tax rate to be approximately 18.0%.
- Diluted earnings per share in the range of $0.95 to $1.10 and adjusted diluted earnings per share in the range of $1.05 to $1.20.
Challenges Ahead
- Projections reflect the impact of foreign currency headwinds and a 53rd week, which will affect annual comparisons.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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