Footwear company Wolverine Worldwide has reported impressive results for the second quarter of 2022, exceeding expectations with a revenue of $713.6 million. This represents a significant growth of 12.9% compared to the same quarter last year. Excluding revenue from Sweaty Betty, Wolverine Worldwide still achieved a record revenue of $666.2 million, marking a 17.2% increase compared to 2019. The international business segment experienced substantial growth, with revenue reaching $295.2 million, a remarkable 45.3% increase that includes contributions from Sweaty Betty.

Despite facing challenges such as elevated customer inventory, a stronger US dollar, and supply chain delays, Wolverine Worldwide managed to achieve record organic revenue in the second quarter. The company’s largest brand, Merrell, saw a notable growth of 14%, while the international business segment grew by an impressive 45%. The operating margin also exceeded expectations.

CEO Brendan Hoffman expressed great optimism about the company’s performance and future growth potential. He stated that they anticipate an acceleration in growth during the second half of the year. However, Hoffman did acknowledge the possibility of higher promotional activity and elevated inventory in the wholesale channels.

CFO Mike Stornant highlighted the significant progress made on strategic initiatives in the second quarter and expressed excitement about the growth potential of Wolverine Worldwide’s brands. He did note, however, that certain negative trends, such as a stronger US dollar, inflation, excess inventory, and changing consumer behavior, have impacted the outlook for the second half of the year. Consequently, the company has adjusted its full-year outlook accordingly.

For the full year of 2022, Wolverine Worldwide expects revenue to range between $2.74 billion and $2.79 billion, representing a growth of approximately 14% to 16%. The company anticipates that foreign currency exchange rate fluctuations will have a negative impact of around $72 million (or 3%) on reported growth for the year.

Overall, Wolverine Worldwide’s strong performance in the second quarter showcases the company’s resilience in the face of challenges and its ability to adapt to changing market conditions. With its focus on strategic initiatives and continued growth in its brands, the company remains well-positioned for future success.

(useful links:
Wolverine Worldwide Press Release
Wolverine Worldwide Q2 2022 Earnings Release)