WWW
Wolverine World Wide INC /DE/
NYSE
8-K: Wolverine World Wide Reports Strong Q1 2025 Results, Fueled by Merrell and Saucony
Sentiment:
Earnings Release
8 May 2025 6:16 AM
Wolverine World Wide, Inc. announced its first quarter 2025 financial results, highlighting revenue growth and improved profitability driven by key brands.
Better than expected
The company's revenue, gross margin, operating margin, and earnings per share all showed significant improvement compared to the previous year.
Summary
- Wolverine World Wide reported its Q1 2025 financial results on May 8, 2025.
- The company's ongoing total revenue increased by 5.5% to $412.3 million compared to $390.8 million in Q1 2024.
- Merrell and Saucony were key growth drivers, with revenue increases of 13.2% and 29.6%, respectively.
- Gross margin improved to 47.3% from 45.9% due to a healthier sales mix, lower promotional activity, and supply chain cost initiatives.
- Operating margin increased significantly to 4.8% from -0.8%.
- Diluted earnings per share rose to $0.13 from a loss of $0.19 in the prior year.
- Adjusted diluted earnings per share increased to $0.18 from $0.05.
- Inventory decreased by approximately 23.6% to $271 million.
- Net debt decreased by approximately 12.1% to $604 million.
- The company expects Q2 2025 revenue to be between $440 million and $450 million, representing growth of approximately 3.7% to 6.0%.
- Due to uncertainty around tariffs and related macro-economic conditions, the Company is not providing a full-year 2025 outlook at this time and is withdrawing its 2025 guidance issued on February 19, 2025.
Sentiment
Score: 7
Explanation: The document presents a generally positive outlook due to strong Q1 results and improved financial metrics. However, the withdrawal of full-year guidance introduces some uncertainty, preventing a higher sentiment score.
Positives
- Revenue increased by 5.5% to $412.3 million.
- Merrell and Saucony brands showed strong growth.
- Gross margin improved to 47.3%.
- Operating margin improved to 4.8%.
- Diluted earnings per share increased to $0.13.
- Inventory was reduced by 23.6% to $271 million.
- Net debt decreased by 12.1% to $604 million.
Negatives
- Work Group revenue decreased by 17.0%.
- Other revenue decreased by 28.0%.
- Sweaty Betty revenue decreased by 15.9%.
- Direct-to-Consumer revenue decreased by 9.4%.
- The company withdrew its full-year 2025 outlook due to uncertainty around tariffs and related macro-economic conditions.
Risks
- Changes in general economic conditions could affect consumer spending.
- Increases in duties, tariffs, or quotas could impact import and export activities.
- Inability to compete effectively in global markets poses a risk.
- Failure to maintain positive brand images could affect consumer preferences.
- Supply chain and capacity constraints could disrupt production and distribution.
- Fluctuations in foreign currency exchange rates could impact financial results.
- Cyberattacks could compromise data and systems.
- Legal compliance and litigation risks could arise.
Future Outlook
The company expects Q2 2025 revenue to be between $440 million and $450 million, representing growth of approximately 3.7% to 6.0%. Operating margin is expected to be approximately 6.7%, and adjusted operating margin to be approximately 7.2%. Diluted earnings per share are expected to be in the range of $0.17 to $0.22, and adjusted diluted earnings per share in the range of $0.19 to $0.24. The company is withdrawing its full-year 2025 outlook due to uncertainty around tariffs and related macro-economic conditions.
Management Comments
- Chris Hufnagel, President and Chief Executive Officer of Wolverine Worldwide, stated that the results are proof of the effectiveness of the company's strategy and the team's execution.
- He highlighted the double-digit revenue increases from Merrell and Saucony and the record gross margin performance.
- He expressed excitement about the momentum generated and confidence in the company's position to navigate near-term challenges.
Industry Context
The announcement reflects the ongoing trends in the footwear and apparel industry, with a focus on strong brands, direct-to-consumer strategies, and managing supply chain challenges. The company's performance is indicative of its ability to adapt to changing consumer preferences and market conditions.
Comparison to Industry Standards
- Wolverine's performance can be compared to companies like Nike, Adidas, and Under Armour, which also focus on brand strength and innovation.
- The gross margin improvement is a positive sign, as it indicates better cost management and pricing strategies.
- The inventory reduction aligns with industry efforts to optimize supply chains and reduce excess stock.
- The withdrawal of full-year guidance is a cautious approach, reflecting the uncertainty in the current macroeconomic environment, a move also seen in other companies facing similar challenges.
Stakeholder Impact
- Shareholders will likely react positively to the improved financial performance.
- Employees may feel more secure due to the company's positive momentum.
- Customers can expect continued investment in product innovation and brand experiences.
- Suppliers may benefit from the company's growth and increased demand.
- Creditors may view the company as a lower risk due to its improved financial health.
Next Steps
- The company will host a conference call to discuss the results and current business trends.
- The company will continue to monitor macroeconomic conditions and adjust its strategy accordingly.
Key Dates
- January 2024: Sale of the Sperry business.
- March 29, 2025: End of the first quarter of 2025.
- May 8, 2025: Date of the earnings release and 8-K filing.
Keywords
Wolverine World Wide, Financial Results, Q1 2025, Revenue, Earnings, Gross Margin, Merrell, Saucony, Footwear, Apparel
WWW
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.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.