NYSE$WWW

Wolverine World Wide Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Delivered record revenue and strong earnings, exceeding EPS expectations.

Wolverine Worldwide reported record second-quarter revenue, driven by growth in Merrell and international business, despite headwinds from customer inventory, a stronger US dollar, and supply chain delays. The company is revising its full-year outlook to account for higher promotional activity and elevated inventory in wholesale channels.

  • Second quarter revenue grew 13% year over year.
  • Merrell brand grew 14% year over year.
  • International business grew 45% year over year.
  • Operating margin was better than expected.

Headline financials

Total Revenue

$714M

Previous: $632M+12.9%
EPS (adj)

$0.66

Previous: $0.67-1.5%
Adjusted Operating Margin

11.0%

No prior period
Operating Margin

23.5%

No prior period
Gross Margin

43.0%

No prior period
Capital Expenditures

-$16.1M

Previous: -$6.7M-140.3%
Free Cash Flow

$109M

Previous: $38M+185.5%
Net Income

$125M

Previous: $44.7M+178.7%
Operating Income

$168M

Previous: $63.8M+163.2%
Gross Profit

$307M

Previous: $270M+13.6%
Cash & Equivalents

$149M

Previous: $346M-56.8%
Total Assets

$2.95B

Previous: $2.3B+28.0%
Stock-Based Comp

$9M

No prior period

Revenue & EPS history

Wolverine · Revenue · Quarterly

$714M

Q2 2022+12.9%vs Q2 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Wolverine · $458M total across 3 segments · Q1 2026

  • Active Group
    $372M
  • Work Group
    $75.7M
  • Other
    $10.3M

Forward guidance

The Company expects revenue to be in the range of $2.740 billion to $2.790 billion, representing growth of approximately 14.0% to 16.0%. Diluted earnings per share are expected to be between $2.62 to $2.72 and adjusted diluted earnings per share are expected to be between $2.10 to $2.20.

Tailwinds

  • Revenue is expected to grow approximately 14.0% to 16.0%.
  • Diluted earnings per share are expected to be between $2.62 to $2.72.
  • Adjusted diluted earnings per share are expected to be between $2.10 to $2.20.
  • Gross margin is expected to be approximately 42.5%.
  • Operating margin is expected to be approximately 11.5%.

Headwinds

  • Foreign currency exchange rate fluctuations are expected to have approximately $72.0 million (or 3.0%) negative impact on full-year reported growth.
  • Foreign currency exchange rate fluctuations are expected to have a $0.11 negative impact on full-year EPS.
  • Increased promotional and markdown cadence.
  • Higher mix of lower-margin international third-party sales in the back half of the year.
  • Increased promotional costs and higher inventory handling costs.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-0.4%

Avg return

Earnings day

-1.1%

Avg return

5 days after

+0.1%

Avg return

30 days after

54%

35 / 65 earnings

Positive

+36.9%

Q3 2024

Best reaction

-33.7%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.1%-5.8%+16.2%
Q4 2025+10.1%-1.3%-12.5%
Q3 2025-25.1%-26.0%-21.2%
Q2 2025+14.9%+13.8%+35.5%
Q1 2025+10.2%+14.0%+19.9%
Q4 2024-16.6%-18.5%-26.5%
Q3 2024+36.9%+37.8%+43.2%
Q2 2024-5.9%-8.8%+1.2%
Q1 2024+17.1%+23.0%+14.7%
Q4 2023+11.0%+5.0%+14.9%
Q3 2023+1.2%-1.2%+7.8%
Q2 2023-25.3%-31.4%-30.8%
Q1 2023+6.2%+5.4%-4.8%
Q4 2022+12.4%+10.2%+6.8%
Q3 2022-33.7%-33.8%-42.0%
Q2 2022+3.2%+4.3%-10.0%
Q1 2022+2.6%+6.5%+19.7%
Q4 2021-6.0%-8.6%-8.1%
Q3 2021-9.8%-9.5%-15.2%
Q2 2021-1.6%+3.4%+9.4%
Q1 2021-10.0%-9.1%-12.4%
Q3 2020-6.2%-0.7%+5.4%
Q2 2020-1.4%+4.0%+9.6%
Q1 2020-9.5%+3.7%+8.8%
Q4 2019-6.9%-10.8%-53.1%
Q3 2019+10.7%+9.1%+8.5%
Q2 2019-0.6%-7.5%-1.7%
Q1 2019-11.0%-16.0%-19.1%
Q4 2018-8.9%-9.0%-12.4%
Q3 2018-6.5%-6.8%-8.6%
Q2 2018+4.7%+4.2%+6.6%
Q1 2018+6.7%+4.9%+18.8%
Q4 2017-0.2%-5.9%-7.8%
Q3 2017+2.0%+5.1%+12.2%
Q2 2017-6.6%-2.4%-3.3%
Q1 2017+3.0%+5.1%+10.2%
Q4 2016+3.8%+6.4%+3.6%
Q3 2016-2.5%-4.9%+8.3%
Q2 2016+11.2%+9.9%+10.9%
Q1 2016+0.0%
Q4 2015-0.2%
Q3 2015-10.3%
Q2 2015+4.7%
Q1 2015-9.6%
Q4 2014+3.5%
Q3 2014+3.0%
Q2 2014-7.8%
Q1 2014+6.0%
Q4 2013-8.4%
Q3 2013+0.2%
Q2 2013+4.8%
Q1 2013+4.1%
Q4 2012+2.1%
Q3 2012+1.2%
Q2 2012+7.6%
Q1 2012+1.7%
Q4 2011+0.5%
Q3 2011+1.8%
Q2 2011+0.0%
Q4 2009+3.5%
Q1 2011+1.1%
Q3 2010-2.4%
Q4 2010+0.6%
Q2 2010+0.6%
Q1 2010-5.2%

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