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Wolverine Worldwide Meets Guidance, Re-iterates FY Outlook

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Despite persistent supply chain challenges and macro headwinds, Wolverine Worldwide exceeded revenue and earnings per share guidance in the first quarter. Total revenues increased 20 percent to $614.8 million from $510.7 million with four of the company’s five leading brands posting revenue gains for the period ended March 31. Direct-To-Consumer sales increased 24 percent and e-commerce sales, while not meeting an internal forecast, rose 35 percent. International sales increased 35 percent, but only 10 percent when excluding the Wolverine-owned Sweaty Betty business. The company reported a recovery in its top global markets and said results from its joint venture in China were strong. 

Wolverine Worldwide is maintaining its full-year outlook that calls for total FY22 revenues of $2.775 to $2.85 billion, a 15-18 percent year-over-year increase that will see Direct-To-Consumer represent approximately 30 percent of the global topline and the international segment another 35 percent. Wolverine’s top three brands in Saucony, Merrell and Sweaty Betty will account for two-thirds of total annual revenues. New products arriving in the second and third quarters will be catalysts for topline expansion. Merrell, which suffered a 1.5 percent decline in first quarter sales to $147.9 million, is expected to generate high-teens growth in the second quarter and for the full year. Saucony’s 3.7 percent topline increase to $106.4 million in the period “slightly exceeded expectations” despite delayed new product introductions. The brand is forecast to achieve double-digit sales growth in the second quarter and hi-teens for the full year. Sperry’s first quarter sales rose 18.7 percent to $67.4 million on improving trends in the boat shoe category and is expected to report low-teen sales growth for the FY. Wolverine brand sales, up 12 percent to $58.8 million, are forecast to grow in the mid-teens this year. And Sweaty Betty, which is contemplating a return to U.S. retail after an exit during the pandemic, generated 3 percent sales growth to the equivalent of $53.6 million as it opened four additional stores in the U.K.

Meanwhile, Wolverine Worldwide has hired Boston Consulting Group to help senior management with comprehensive, corporate strategic review that commenced recently. The company has also initiated a cost-efficiency review of its operations.

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