NYSE$WWW

Wolverine World Wide Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported fourth quarter results in-line with guidance and provided outlook for 2023.

Wolverine Worldwide reported a 4.6% increase in fourth-quarter revenue, and 8.4% on a constant currency basis. The company improved inventory by over $90 million versus the third quarter. Priorities for 2023 are to fuel growth in the Active Group, sustain positive momentum in the Work Group, and address underperforming brands while further strengthening its financial position.

  • Revenue of $665.0 million represents growth of 4.6% versus the prior year and growth of 8.4% on a constant currency basis.
  • International business was especially strong, up 22.2% or 31.9% on a constant currency basis to $281.5 million.
  • Direct-to-Consumer revenue of $224.4 million was flat compared to the prior year and up 4.8% on a constant currency basis.
  • Inventory at the end of the quarter was $745.2 million which does not include $43.1 million from held-for-sale businesses, down approximately $90 million versus the previous quarter.

Headline financials

Total Revenue

$665M

Previous: $636M+4.6%
EPS (adj)

-$0.15

Previous: $0.41-136.6%
Capital Expenditures

$13M

Previous: $10.3M+26.2%
Free Cash Flow

$298M

Previous: $299M-0.2%
Net Income

-$361M

Previous: -$171M-111.4%
Operating Income

-$455M

Previous: -$204M-122.8%
Gross Profit

$224M

Previous: $205M+9.6%
Cash & Equivalents

$132M

Previous: $347M-62.1%
Total Assets

$2.49B

Previous: $2.14B+16.6%
Stock-Based Comp

$7M

Previous: $28.9M-75.8%

Revenue & EPS history

Wolverine · Revenue · Quarterly

$665M

Q4 2022+4.6%vs Q4 2021
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

Revenue from ongoing business is expected to be in the range of $2.53 billion to $2.58 billion, representing growth of approximately 0.0% to 2.0% and constant currency growth of approximately 1.0% to 3.0%.

Tailwinds

  • Gross margin is expected to be approximately 41.2% and adjusted gross margin is expected to be approximately 42.0%
  • Operating margin is expected to be approximately 8.7%, and adjusted operating margin is expected to be approximately 8.5%
  • The effective tax rate is expected to be approximately 21.0%.
  • Diluted earnings per share are expected to be between $1.50 to $1.70 and adjusted diluted earnings per share are expected to be between $1.40 to $1.60.
  • Diluted weighted average shares are expected to be approximately 79.3 million.

Headwinds

  • These full-year EPS expectations include an approximate $0.14 negative impact from foreign currency exchange rate fluctuations.
  • This outlook assumes no meaningful deterioration of current market conditions related to the impact of the COVID-19 pandemic.
  • This outlook assumes no meaningful deterioration of ongoing inflationary pressures.
  • This outlook assumes no meaningful deterioration of supply chain disruptions.
  • This outlook assumes no meaningful deterioration of changes in consumer behavior and confidence and geopolitical tensions.

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 Q4 2022

Historical avgQ4 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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