NYSE$WWW

Wolverine World Wide Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Wolverine Worldwide's third quarter results significantly exceeded expectations, driven by the strength of its portfolio and brand positioning.

Wolverine Worldwide reported strong Q3 2020 results, exceeding expectations with revenue at $493.1 million and EPS at $0.27. Saucony and Chaco delivered double-digit revenue growth, while Merrell and work brands showed meaningful sequential improvement. The company's eCommerce business grew over 56%.

  • Revenue reached $493.1 million, a decrease of 14.1% year-over-year.
  • Owned eCommerce revenue increased by 56.4% compared to the previous year.
  • Reported diluted earnings per share (EPS) were $0.27, compared to $0.57 in the prior year.
  • Cash flow from operating activities was $96.5 million, a significant increase from $12.1 million in the prior year.

Headline financials

Total Revenue

$493M

Previous: $574M-14.1%
EPS (adj)

$0.35

Previous: $0.68-48.5%
Operating Margin

8.6%

Previous: 11.9%-27.7%
Gross Margin

41.0%

Previous: 42.4%-3.3%
Capital Expenditures

-$6M

Previous: -$28.7M+79.1%
Free Cash Flow

$16.4M

Previous: $20M-18.0%
Net Income

$22.4M

Previous: $48.7M-54.0%
Operating Income

$42.6M

Previous: $68.3M-37.6%
Gross Profit

$202M

Previous: $243M-17.0%
Cash & Equivalents

$342M

Previous: $125M+173.2%
Total Assets

$2.5B

Previous: $2.47B+1.3%
Stock-Based Comp

$11.3M

Previous: $7.1M+59.2%

Revenue & EPS history

Wolverine · Revenue · Quarterly

$493M

Q3 2020-14.1%vs Q3 2019
Beat estimate in 15 of 16 quarters(94%)
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 headwinds from the pandemic to persist in the near-term and anticipates Q4 revenue to be down no more than 25% year-over-year. Investments will continue to accelerate growth in Q1 2021.

Tailwinds

  • Strong digital strategy
  • Improved visibility to wholesale demand
  • Return to meaningful growth expected in Q1 2021
  • Ongoing momentum of key brands
  • Continued investment behind key brands

Headwinds

  • Headwinds caused by the pandemic will persist in the near-term
  • Fourth quarter revenue expected to be down no more than 25% year-over-year
  • Effects of a partial shift in revenue from international business into the first quarter of 2021
  • Uncertainty related to the duration and scope of the pandemic
  • Potential negative impact on global and regional markets

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 Q3 2020

Historical avgQ3 2020

-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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