On August 7, 2024, Wolverine World Wide Inc (WWW, Financial) released its 8-K filing for the second quarter ended June 29, 2024. Wolverine World Wide Inc is engaged in designing, manufacturing, sourcing, marketing, licensing, and distributing branded footwear, apparel, and accessories. The company's segments include Active Group, Work Group, Lifestyle Group, and Other, with the Active Group generating the maximum revenue.
Performance Overview
Wolverine World Wide Inc reported Q2 2024 revenue of $425.2 million, surpassing the analyst estimate of $411.18 million. The company's diluted earnings per share (EPS) stood at $0.17, also exceeding the estimated $0.16. Despite these positive results, the company faced a year-over-year revenue decline of 27.8%, primarily due to divestitures and strategic business model changes.
Financial Achievements and Challenges
Wolverine World Wide Inc's gross margin improved significantly to 43.1%, up from 38.7% in the same quarter last year. This improvement was driven by lower supply chain costs and a favorable distribution channel mix. Operating expenses decreased by 15.2% year-over-year, reflecting the company's efforts to streamline operations.
“We delivered better-than-expected revenue and earnings in the second quarter, while continuing to execute our ambitious turnaround plan,” said Chris Hufnagel, President and Chief Executive Officer of Wolverine Worldwide.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Total Revenue | $425.2 million | $589.1 million | (27.8)% |
| Gross Margin | 43.1% | 38.7% | 440 bps |
| Operating Expenses | $154.1 million | $181.7 million | (15.2)% |
| Diluted EPS | $0.17 | $0.30 | (43.3)% |
Income Statement Highlights
Wolverine World Wide Inc reported net earnings of $15.6 million for Q2 2024, down from $24.4 million in Q2 2023. The company's operating profit stood at $29.1 million, reflecting an operating margin of 6.8%, compared to 7.8% in the same period last year.
Balance Sheet and Cash Flow
As of June 29, 2024, Wolverine World Wide Inc had cash and cash equivalents of $148.3 million, down from $176.5 million a year earlier. The company's net debt decreased to $666 million, a reduction of $271 million compared to the prior year. Inventory levels were significantly reduced by 54.1% year-over-year, standing at $297.1 million.
Outlook for Fiscal Year 2024
Wolverine World Wide Inc has raised the mid-point of its guidance range for fiscal year 2024 revenue and earnings. The company now expects revenue from its ongoing business to be approximately $1.71 to $1.73 billion, compared to the previous outlook of $1.68 to $1.73 billion. The adjusted diluted EPS is projected to be in the range of $0.75 to $0.85, up from the previous range of $0.65 to $0.85.
“We are pleased with how we are performing at this stage in our strategic transformation, and our second quarter results reflect the progress and the actions we've taken to improve the financial position of the Company," said Taryn Miller, Chief Financial Officer.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Wolverine World Wide Inc for further details.
