NYSE$WWW
Wolverine World Wide Inc · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
Wolverine Worldwide's Q3 2022 results were released, showing revenue growth but falling short of expectations due to supply chain issues and promotional activity.
Wolverine World Wide, Inc. reported an 8.6% increase in revenue for the third quarter of 2022, reaching $691.4 million. However, both revenue and profit were below expectations due to supply chain disruptions and increased promotional activity. International business showed strength, with a 33% increase to $303 million, and Merrell's brand continued its strong momentum with 39% constant currency growth.
- Revenue increased by 8.6% to $691.4 million, and 12% on a constant currency basis.
- International business grew strongly, up 33% to $303 million.
- Merrell brand showed strong momentum, with 39% constant currency growth.
- Direct-to-Consumer revenue increased by 4.5% to $160 million.
Headline financials
Revenue & EPS history
Wolverine · Revenue · Quarterly
$691M
Revenue by segment
Wolverine · $458M total across 3 segments · Q1 2026
- Active Group$372M—81.2%
- Work Group$75.7M—16.5%
- Other$10.3M—2.3%
Forward guidance
The company anticipates revenue growth of 2% to 6% in the fourth quarter, which includes a 4% negative impact from foreign exchange rate fluctuations. A heavily promotional environment is expected, especially in North American wholesale and global DTC channels, which will put downward pressure on gross margin for the quarter. The company is prioritizing the liquidation of non-core inventory to improve its working capital position in 2023.
Tailwinds
- Revenue is expected to be in the range of $650 million to $675 million, representing growth of approximately 2.3% to 6.2%.
- Company expects its aggressive inventory actions to position it to reduce inventory at year end versus the third quarter of 2022.
- Distribution efficiencies will allow it to more timely receive and ship products at the start of fiscal 2023.
- New brand structure and the establishment of the new Profit Improvement Office to create great value through meaningful operational efficiency and cost reductions to be recognized in 2023.
Headwinds
- Foreign currency exchange rate fluctuations are expected to have approximately $28 million (or 4.4%) negative impact on fourth quarter reported growth.
- Adjusted Gross margin is expected to be approximately 38.0% compared to 42.4% in the prior year.
- This decrease reflects the Company’s efforts to reduce seasonal inventory and includes an expectation that the fourth quarter holiday period will be highly promotional, as well as an expectation for increased logistics and handling costs and unfavorable foreign exchange rates.
- Diluted earnings per share are expected to be between ($0.19) to ($0.09) and adjusted diluted earnings per share are expected to be between ($0.15) to ($0.05).
- Foreign currency exchange rate fluctuations are expected to have a $0.03 negative impact on fourth quarter EPS.
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 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
| Quarter | Report date | Reaction (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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