Wolverine Worldwide posts Q4 loss
For the fourth quarter, Wolverine World Wide, Inc. revenue of 665 million dollars, rose 4.6 percent or 8.4 percent on a constant currency basis. The company reported a net loss of 361.6 million dollars or 4.59 dollars per share and adjusted diluted loss per share of 15 cents for the quarter.
The company's international business increased 22.2 percent or 31.9 percent on a constant currency basis to 281.5 million dollars and direct-to-consumer revenue of 224.4 million dollars was flat or up 4.8 percent on a constant currency basis.
Full year revenue of 2,684.8 million dollars grew 11.2 percent or 14.1 percent on a constant currency basis.
Fourth quarter gross margin was 33.7 percent versus 41.3 percent in the prior year, while full year gross margin was 39.9 percent versus 42.6 percent in the prior year.
"Encouraging results from our 100-day action plan, initiated in the fourth quarter, include a reduction in inventory and debt levels, the sale of Keds, and the establishment of a new profit improvement office to unlock savings to support growth acceleration in our highest potential brands,” stated Brendan Hoffman, Wolverine Worldwide’s president and chief executive officer.
For 2023, revenue is expected to be in the range of 2.53 billion dollars to 2.58 billion dollars, representing growth of approximately 0 to 2 percent and constant currency growth of approximately 1 to 3 percent.
Gross margin is expected to be approximately 41.2 percent and adjusted gross margin is expected to be approximately 42 percent. Diluted earnings per share are expected to be between 1.50 dollars to 1.70 dollars and adjusted diluted earnings per share are expected to be between 1.40 dollars to 1.60 dollars.
“Our priorities for 2023 are to fuel growth in our Active Group, sustain positive momentum in our Work Group, and address underperforming brands while we further strengthen our financial position. We remain confident in our ability to deliver a 12 percent operating margin in 2024," added Hoffman.