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Wolverine Worldwide Q1 revenue up 20 percent, reaffirms FY outlook

By Huw Hughes

11 May 2022

Business

Image: Sweaty Betty, Facebook

Wolverine Worldwide has reaffirmed its full-year outlook after reporting revenue and earnings ahead of expectations in the first quarter of the year.

In the three months ending April 2, the US company reported a 20.4 percent year-over-year increase in revenue to 614.8 million dollars.

Including the company’s Sweaty Betty brand, direct-to-consumer (DTC) revenue was up 24 percent. Excluding Sweaty Betty, DTC revenue was down 14 percent.

Wolverine Worldwide made an operating margin of 3.2 percent in the quarter compared to 11.4 percent a year earlier.

Its net income dropped to 8.4 million dollars compared to 38.4 million dollars.

Supply chain challenges

“We delivered strong financial results in the quarter despite continued supply chain challenges and macro headwinds,” Wolverine Worldwide president and CEO Brendan Hoffman told investors.

“Revenue and operating margin exceeded expectations, despite gross margin pressure related to higher supply chain costs and channel mix shift,” he said.

The company reaffirmed its outlook for the full year. It expects revenue to be in the range of 2.775 billion dollars to 2.850 billion dollars, which would represent growth of around 15 percent to 18 percent.

Its operating margin is expected to be approximately 10.2 percent and its adjusted operating margin approximately 11 percent, which would be 35 bps higher than 2021 levels.

Mike Stornant, the executive vice president and chief financial officer of Wolverine Worldwide, said: “We are encouraged to see continued strong demand across brands and have upcoming product launches and powerful marketing initiatives planned to drive further excitement among consumers.

“Looking ahead, we remain committed to advancing our primary growth strategies, with a more focused approach on execution as we capitalize on a favorable industry backdrop in outdoor, performance and work categories.”