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Wolverine World Wide INC /DE/
NYSE
8-K/A: Wolverine Worldwide Reports Q4 and Fiscal Year 2024 Results, Exceeds Expectations and Issues Positive 2025 Outlook
Sentiment:
Earnings Release
20 February 2025 5:23 PM
Wolverine Worldwide met its 2024 guidance, inflected to growth in Q4, and issued a positive outlook for 2025, driven by a turnaround strategy focused on stabilization, transformation, and inflection.
Better than expected
The company exceeded expectations for revenue and earnings in the fourth quarter of 2024.
The company's adjusted EPS of $0.42 was better than the guidance of $0.31 $0.41.
The company's adjusted revenue of $495M was better than the guidance of $475 $490M.
Summary
- Wolverine Worldwide reported its fourth quarter and full-year 2024 financial results, meeting its guidance and achieving an inflection to growth in the final quarter.
- The company's turnaround strategy, composed of stabilization, transformation, and inflection, has led to a stronger balance sheet, expanded profitability, and improved revenue trends.
- Fourth-quarter ongoing total revenue increased by 3.0% to $494.7 million, while full-year ongoing total revenue decreased by 12.1% to $1,750.4 million.
- The company expects revenue for fiscal year 2025 to be approximately $1.795 to $1.825 billion, representing growth of approximately 2.5% to 4.3% compared to 2024.
- Gross margin improved significantly, with fourth-quarter gross margin at 44.0% and full-year gross margin at 44.5%.
- Inventory decreased by $133 million to $241 million, and net debt decreased by $246 million to $496 million.
- The company projects diluted earnings per share in the range of $0.95 to $1.10 and adjusted diluted earnings per share in the range of $1.05 to $1.20 for fiscal year 2025.
Sentiment
Score: 8
Explanation: The document presents a positive outlook, highlighting the company's successful turnaround, improved financial performance, and optimistic projections for 2025. While there are some challenges and risks mentioned, the overall tone is confident and forward-looking.
Positives
- The company successfully executed its turnaround strategy, achieving stabilization, transformation, and inflection.
- Revenue inflected to growth in the fourth quarter of 2024.
- Gross margins improved significantly due to lower supply chain costs, product costs, and lower sales of end-of-life inventory.
- Inventory and net debt were substantially reduced.
- The company issued a positive outlook for 2025, projecting revenue growth and improved profitability.
Negatives
- Full-year ongoing total revenue decreased by 12.1% compared to the previous year.
- The company faces foreign currency headwinds, which are expected to negatively impact earnings per share by approximately $0.08 in 2025.
- Some brands, like Sweaty Betty, are expected to decline in revenue in 2025.
Risks
- Changes in general economic conditions and consumer spending could impact the company's performance.
- The inability to compete effectively in global markets and maintain positive brand images poses a risk.
- Supply chain disruptions, production delays, and increased costs of raw materials and labor could negatively affect the company.
- Foreign currency exchange rate fluctuations and currency restrictions could impact revenue and profitability.
- Failure of licensees or distributors to meet planned sales goals or make timely payments could affect the company's financial results.
Future Outlook
The company expects to build on the momentum gained in 2024 and make continued progress on its transformation in fiscal year 2025, projecting revenue growth of 2.5% to 4.3% and improved profitability.
Management Comments
- Chris Hufnagel, President and Chief Executive Officer of Wolverine Worldwide, stated that the company accomplished its objectives in 2024, exceeding expectations for revenue and earnings and inflecting to growth.
- Hufnagel expressed encouragement with the progress made and excitement for the future, aiming to deliver better, more consistent returns for shareholders.
Industry Context
Wolverine Worldwide's focus on performance categories aligned with consumer macro trends, such as running footwear, outdoor performance footwear, and women's activewear, positions it well in attractive markets. The company's global distribution network and authentic brands provide a competitive advantage.
Comparison to Industry Standards
- The company's gross margin of 44.5% for fiscal year 2024 is comparable to industry peers such as Deckers Outdoor Corporation (49.9%) and Columbia Sportswear Company (50.3%).
- Wolverine's focus on reducing debt and improving profitability aligns with industry trends of optimizing financial performance.
- The company's strategic shift towards direct-to-consumer channels mirrors the broader industry trend of brands seeking greater control over their distribution and customer relationships.
Stakeholder Impact
- Shareholders can expect improved returns as the company focuses on delivering better and more consistent results.
- Employees may experience a more stable and growth-oriented work environment as the company continues its transformation.
- Customers can anticipate continued innovation and quality in the company's branded products.
- Suppliers and distributors can expect strengthened partnerships as the company expands its global distribution network.
Next Steps
- The company plans to continue building on the momentum gained in 2024 and make continued progress on its transformation in fiscal year 2025.
- Wolverine Worldwide will host a conference call to discuss these results and current business trends.
Key Dates
- February 4, 2023: Sale of the global Keds business.
- August 2023: Divested the U.S. Wolverine Leathers business.
- December 2023: Divested the non-U.S. Wolverine Leathers business.
- January 2024: Sale of the Sperry business effective January 10, 2024.
- December 28, 2024: End of the fourth quarter and fiscal year 2024.
- February 19, 2025: Date of the original 8-K filing and press release announcing financial results.
- February 20, 2025: Date of the amended 8-K/A filing.
Keywords
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Wolverine World Wide INC /DE/
NYSE
Sector: TBD
Filings with Classifications
Better than expected
8 May 2025 11:32 AM
Quarterly Report
- The company reported positive earnings per share compared to a loss in the same quarter last year.
- Revenue increased by 4.4% compared to the first quarter of 2024.
- Gross margin improved to 47.3% from 45.9% year-over-year.
Better than expected
8 May 2025 6:16 AM
Earnings Release
- The company's revenue, gross margin, operating margin, and earnings per share all showed significant improvement compared to the previous year.
Better than expected
19 March 2025 5:10 PM
Proxy Statement
- The company successfully completed its stabilization phase and strengthened the balance sheet, finishing the year with less than half the debt it held 24 months earlier and the cleanest inventory position since the pandemic.
- Business profitability improved, with record gross margins and earnings per share nearly six times greater than the prior year.
- Wolverine Worldwide experienced growth in the final quarter of 2024, setting the stage for continued growth.
Better than expected
20 February 2025 5:23 PM
Earnings Release
- The company exceeded expectations for revenue and earnings in the fourth quarter of 2024.
- The company's adjusted EPS of $0.42 was better than the guidance of $0.31 $0.41.
- The company's adjusted revenue of $495M was better than the guidance of $475 $490M.
Better than expected
20 February 2025 1:03 PM
Annual Results
- The company's earnings per share were better than the previous year.
- The company's gross margin was better than the previous year.
- The company's cash flow from operating activities was better than the previous year.
Better than expected
19 February 2025 6:42 AM
Earnings Release
- The company exceeded expectations for both revenue and earnings in Q4.
- The company achieved its goal of inflecting to growth in Q4 2024.
Worse than expected
7 November 2024 4:03 PM
Quarterly Report
- The company's revenue decreased significantly in both the third quarter and year-to-date periods, indicating worse than expected performance.
- The company's operating profit decreased by 48.4% year-to-date, indicating worse than expected performance.
Better than expected
7 November 2024 6:40 AM
Quarterly Report
- The company's revenue and earnings exceeded previous guidance for the third quarter.
- The company raised its full-year revenue and earnings guidance.
- The company achieved a record gross margin of 45.3%.
Worse than expected
8 August 2024 2:37 PM
Quarterly Report
- The company's revenue decreased by 27.8% year-over-year, indicating a worse performance than expected.
- Diluted earnings per share decreased from $0.30 to $0.17 year-over-year, indicating a worse performance than expected.
- The company experienced a cash outflow from operating activities in the first half of 2024, indicating a worse performance than expected.
Better than expected
7 August 2024 7:49 AM
Investor Presentation
- The company exceeded its revenue, gross margin, and EPS guidance for the second quarter of 2024.
- The company raised its full-year revenue and EPS guidance.
Better than expected
7 August 2024 6:36 AM
Quarterly Report
- The company's second-quarter revenue and earnings exceeded expectations, indicating better-than-anticipated performance.
- The company raised its full-year revenue and earnings guidance, suggesting improved confidence in future performance.
Worse than expected
8 May 2024 4:37 PM
Quarterly Report
- The company's revenue declined by 34.1%, which is significantly worse than expected.
- The company reported a net loss of $13.7 million, which is worse than the net income of $18.0 million in the same period last year.
Better than expected
8 May 2024 6:33 AM
Quarterly Report
- The company exceeded first-quarter revenue and earnings expectations.
- The company achieved a record gross margin of 45.9%, a 650 basis point increase year-over-year.
- The company reduced inventory by 51.2% year-over-year.
Worse than expected
20 March 2024 4:38 PM
Proxy Statement
- Company and International Group revenue and pre-tax performance for 2023 was below threshold and resulted in no payout.
Worse than expected
22 February 2024 2:08 PM
Annual Results
- The company's revenue decreased by 16.5% compared to the prior year.
- The company's gross margin declined to 38.9% in 2023.
- The company reported a loss per share of $0.51 in 2023.
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