Wolverine Worldwide confirms 2023 results in line with previous guidance
“For the fourth quarter and full year, we expect to deliver financial results in line with our guidance – while achieving better-than-anticipated year-end debt and inventory levels. Importantly, the performance of our direct-to-consumer business met our expectations for the critical holiday period as well – led by Merrell, Saucony, Sweaty Betty and Wolverine”, commented Chris Hufnagel, President and Chief Executive Officer of the company.
Fiscal 2023 Guidance
Wolverine Worldwide expects full year 2023 and fourth quarter revenue of approximately 2.24 billion US dollars and 527 million US dollars, respectively, in line with the November guidance. Full year and fourth quarter revenue for its ongoing business is still anticipated at approximately 2.20 billion US dollars and 521 million US dollars, respectively.
In line with the previous guidance, the company also anticipates its full year and fourth quarter adjusted gross margins to be above 39% and 36%, respectively. In addition, adjusted pre-tax earnings for the full year and fourth quarter are too in line with the company’s expectations.
Key Transformation Updates
The US-based company reported that asset monetisation transactions executed generated nearly 250 million US dollars in cash, of which 91 million US dollars was received in the fourth quarter of 2023. These include the sale of Keds, Hush Puppies intellectual property in China, Wolverine Leathers, the adoption of a new operating model for Merrell and Saucony in Greater China, and the sale of its Kentucky distribution centre.
“We enter the new year on increasingly firmer footing, and with a focus on furthering our efforts to transform the Company into a great builder of global brands, investing in product design and storytelling to fuel future growth, and ultimately, creating greater value for our shareholders”, concluded Chris Hufnagel.
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