NYSE$WWW

Wolverine World Wide Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported better-than-expected revenue and earnings, while executing turnaround plan.

Wolverine Worldwide reported second-quarter revenue of $425.2 million and EPS of $0.17, exceeding expectations. The company is executing its turnaround plan, lowering debt and inventory levels, and expanding gross margin. They are beginning to see proof points of growth driven by stronger product pipelines and improved demand creation.

  • Delivered better-than-expected revenue and earnings in Q2 2024.
  • Lowered debt and inventory levels significantly.
  • Expanded gross margin meaningfully.
  • Observed proof points of inflection to growth.

Headline financials

Total Revenue

$425M

Previous: $589M-27.8%
EPS

$0.17

Previous: $0.19-10.5%
Operating Expenses

$154M

No prior period
Adjusted Operating Expenses

$156M

No prior period
Adjusted Operating Margin

6.3%

No prior period
Adjusted Diluted EPS

$0.15

No prior period
Constant Currency EPS

$0.15

No prior period
Inventory

$297M

No prior period
Net Debt

$667M

No prior period
Operating Margin

6.8%

Previous: 7.8%-12.8%
Gross Margin

43.1%

Previous: 38.7%+11.4%
Capital Expenditures

-$8.1M

Previous: -$14.2M+43.0%
Free Cash Flow

$6.1M

Previous: $9.8M-37.8%
Net Income

$14.2M

Previous: $24M-40.8%
Operating Income

$29.1M

Previous: $46.1M-36.9%
Gross Profit

$183M

Previous: $228M-19.6%
Total Assets

$1.8B

Previous: $2.36B-23.8%
Stock-Based Comp

$5.7M

Previous: $3.3M+72.7%

Revenue & EPS history

Wolverine · Revenue · Quarterly

$425M

Q2 2024-27.8%vs Q2 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

Company expects revenue from its ongoing business to be approximately $1.71 to $1.73 billion. Gross margin of approximately 44.5%. Operating margin to be approximately 6.0 % and adjusted operating margin to be approximately 7.4%. Diluted earnings per share in the range of $0.53 to $0.63 and adjusted diluted earnings per share in the range of $0.75 to $0.85.

Tailwinds

  • Revenue from its ongoing business to be approximately $1.71 to $1.73 billion.
  • Gross margin of approximately 44.5%, up 460 basis points compared to 2023.
  • Operating margin to be approximately 6.0 %.
  • Adjusted operating margin to be approximately 7.4%, up 350 basis points compared to 2023.
  • Diluted earnings per share in the range of $0.53 to $0.63 and adjusted diluted earnings per share in the range of $0.75 to $0.85.

Headwinds

  • Revenue represents a decline of approximately 14.2% to 13.2% compared to 2023.
  • Constant currency decline of approximately 14.1% to 13.1% compared to 2023.
  • Full-year EPS expectations continue to include an approximate $0.10 negative impact from foreign currency exchange rate fluctuations.
  • Effective tax rate to be approximately 18.5%, as compared to the previous outlook of 18.0%
  • Inventory to decline by at least $75 million at year end compared to the prior year end.

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 2024

Historical avgQ2 2024

-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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