NYSE$WWW

Wolverine World Wide Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Wolverine Worldwide reported third quarter revenue and earnings above guidance and raised revenue and earnings guidance for fiscal year 2024.

Wolverine Worldwide's third quarter results exceeded expectations, driven by strong performance from Merrell and Saucony. The company is making progress on its turnaround plan, with record gross margin and significantly increased earnings compared to the previous year. Wolverine is moving forward with a stronger platform for growth, a rationalized brand portfolio, a healthier balance sheet, and a talented team.

  • Delivered better-than-expected revenue and earnings, led by Merrell and Saucony.
  • Drove another quarter of record gross margin.
  • More than doubled earnings versus last year.
  • Moving forward with a stronger platform for growth.

Headline financials

Total Revenue

$440M

Previous: $528M-16.6%
EPS

$0.28

Previous: $0.07+300.0%
Operating Expenses

$164M

No prior period
Adjusted Operating Expenses

$165M

No prior period
Adjusted Operating Margin

7.6%

No prior period
Adjusted Diluted EPS

$0.28

No prior period
Constant Currency EPS

$0.28

No prior period
Inventory

$295M

No prior period
Net Debt

$563M

No prior period
Operating Margin

7.9%

Previous: 5.2%+51.9%
Gross Margin

45.1%

Previous: 40.8%+10.5%
Capital Expenditures

-$12.2M

Previous: -$18.5M+34.1%
Free Cash Flow

$11.4M

Previous: -$9.9M+215.2%
Net Income

$23.6M

Previous: $8.6M+174.4%
Operating Income

$35.2M

Previous: $27.3M+28.9%
Gross Profit

$199M

Previous: $215M-7.5%
Total Assets

$1.76B

Previous: $2.23B-21.2%
Stock-Based Comp

$5.2M

Previous: $4M+30.0%

Revenue & EPS history

Wolverine · Revenue · Quarterly

$440M

Q3 2024-16.6%vs Q3 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

The Company currently expects revenue from its ongoing business to be approximately $1.730 to $1.745 billion and diluted earnings per share in the range of $0.56 to $0.66 and adjusted diluted earnings per share in the range of $0.80 to $0.90 for fiscal year 2024.

Tailwinds

  • Revenue from its ongoing business to be approximately $1.730 to $1.745 billion.
  • Gross margin of approximately 44.5%.
  • Operating margin to be approximately 5.8% and adjusted operating margin to be approximately 7.2%.
  • The effective tax rate to be approximately 16.5%.
  • Diluted earnings per share in the range of $0.56 to $0.66 and adjusted diluted earnings per share in the range of $0.80 to $0.90.

Headwinds

  • Revenue represents a decline of approximately 13.1% to 12.4% and a constant currency decline of approximately 13.3% to 12.6% compared to 2023.
  • Operating margin compares to the previous operating margin outlook of approximately 6.0% and adjusted operating margin of approximately 7.4%.
  • Full-year EPS expectations continue to include an approximate $0.10 negative impact from foreign currency exchange rate fluctuations.
  • Inventory to decline by approximately $85 million at year end compared to the prior year end.
  • Net Debt at year end to be approximately $545 million, a reduction of $195 million from 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 Q3 2024

Historical avgQ3 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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