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Wolverine World Wide INC /DE/
NYSE
10-Q: Wolverine World Wide Reports Q1 2025 Earnings: Revenue Up, EPS Positive After Prior Year Loss
Sentiment:
Quarterly Report
8 May 2025 11:32 AM
Wolverine World Wide's Q1 2025 shows revenue growth and a return to profitability, driven by the Active Group's performance.
Better than expected
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.
Summary
- Wolverine World Wide, Inc. reported a revenue of $412.3 million for the first quarter of 2025, an increase of 4.4% compared to $394.9 million in the first quarter of 2024.
- The company achieved diluted earnings per share of $0.13, a significant improvement from the diluted loss per share of $0.19 in the same period last year.
- Gross margin improved to 47.3% from 45.9% year-over-year, attributed to a healthier sales mix and supply chain cost initiatives.
- Cash flow used in operating activities was $83.8 million, compared to $37.2 million in the prior year.
- Inventory decreased by $83.6 million, or 23.6%, compared to the first quarter of 2024.
- The company declared a cash dividend of $0.10 per share for both the first quarters of 2025 and 2024.
- The Active Group's revenue increased by 12.7%, driven by Saucony and Merrell, while the Work Group's revenue decreased by 17.0%.
Sentiment
Score: 7
Explanation: The report shows a positive trend with increased revenue and a return to profitability. However, there are some concerns regarding cash flow and the performance of certain segments, leading to a moderately positive sentiment.
Positives
- Revenue growth driven by the Active Group, particularly Saucony and Merrell brands.
- Improved gross margin indicates better profitability and cost management.
- Positive earnings per share, a turnaround from the previous year's loss.
- Significant reduction in inventory levels.
- Decrease in operating expenses due to lower impairment and reorganization costs.
Negatives
- Cash flow used in operating activities increased compared to the prior year.
- The Work Group experienced a revenue decrease of 17.0%.
- Direct-to-consumer revenue decreased by 9.4%.
Risks
- Changes in general economic conditions could affect consumer spending.
- Inability to compete in global markets and maintain brand image.
- Supply chain disruptions and increased costs of raw materials.
- Risks related to the company's direct-to-consumer operations.
- Potential for impairment to goodwill and other intangibles, particularly related to Sweaty Betty.
- Legal compliance and litigation risks, including environmental remediation costs.
- Breach of databases or other systems due to cyberattacks.
Future Outlook
The company expects current seasonal sales patterns to continue in future years and anticipates meeting working capital requirements through internal operating cash flows and borrowings under its revolving credit facility.
Industry Context
The company operates in the global footwear, apparel, and direct-to-consumer markets, facing competition from various brands and retailers. The results reflect the company's strategic efforts to build high-energy brands and expand its direct-to-consumer footprint.
Comparison to Industry Standards
- It is difficult to compare Wolverine World Wide's results directly to specific industry standards without detailed competitor data.
- However, the company's focus on brand building and direct-to-consumer expansion aligns with strategies employed by companies like Nike and Adidas.
- The improvement in gross margin suggests effective cost management, which is a key performance indicator in the apparel and footwear industry.
- The company's debt levels and liquidity position are important factors to consider in comparison to its peers.
Stakeholder Impact
- Shareholders will benefit from the improved financial performance and continued dividend payments.
- Employees may be affected by restructuring and realignment initiatives.
- Customers will benefit from the company's focus on innovative products and compelling brand propositions.
- Suppliers may be affected by changes in sourcing strategies.
Next Steps
- The company will continue to monitor environmental compliance and remediation activities.
- The company will continue to execute its strategic vision to build and grow high-energy brands.
- The company declared a quarterly dividend of $0.10 per share on April 30, 2025, payable to shareholders of record on July 1, 2025.
Legal Proceedings
- The company is involved in litigation and various legal matters arising in the normal course of business, including certain environmental compliance activities.
- The company has established a reserve for estimated environmental remediation costs based upon an evaluation of currently available facts with respect to each individual affected site.
Key Dates
- January 1, 2024: Completed the sale of equity interests in the Merrell and Saucony China joint venture entities.
- January 10, 2024: Completed the sale of the Sperry business.
- February 20, 2025: Filing of the 2024 Form 10-K with the SEC.
- March 29, 2025: End of the quarterly period.
- April 21, 2025: 81,044,051 shares of common stock outstanding.
- April 30, 2025: Quarterly dividend of $0.10 per share declared.
- May 8, 2025: Date of report filing.
- July 1, 2025: Record date for the declared dividend.
Keywords
revenue, earnings, gross margin, Active Group, Work Group, inventory, Wolverine World Wide, financial results, footwear, apparel
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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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