First quarter revenue of $615 million grew 20% with continued momentum across brands
ROCKFORD, Mich.--(BUSINESS WIRE)--Wolverine World Wide, Inc. (NYSE: WWW) today reported financial results for the first quarter ended April 2, 2022.
“We delivered strong financial results in the quarter despite continued supply chain challenges and macro headwinds,” said Brendan Hoffman, Wolverine Worldwide’s President and Chief Executive Officer. “Revenue and operating margin exceeded expectations, despite gross margin pressure related to higher supply chain costs and channel mix shift. We are encouraged to see continued strong demand across brands and have upcoming product launches and powerful marketing initiatives planned to drive further excitement among consumers. Looking ahead, we remain committed to advancing our primary growth strategies, with a more focused approach on execution as we capitalize on a favorable industry backdrop in outdoor, performance and work categories.”
FIRST-QUARTER 2022 FINANCIAL HIGHLIGHTS |
||||||||
(in millions) |
4/2/2022 |
|
4/3/2021 |
Y/Y Change |
||||
Michigan Group |
|
$329.3 |
|
|
$297.7 |
|
10.6 |
% |
Boston Group |
|
$212.3 |
|
|
$200.9 |
|
5.7 |
% |
Other |
|
$73.2 |
|
|
$12.1 |
|
505.0 |
% |
Total Revenue |
$614.8 |
|
|
$510.7 |
|
20.4 |
% |
|
Supplemental Brand Information |
|
|
|
|||||
Merrell |
|
$147.9 |
|
|
$150.2 |
|
(1.5 |
)% |
Saucony |
|
$106.4 |
|
|
$102.6 |
|
3.7 |
% |
Sperry |
|
$67.4 |
|
|
$56.8 |
|
18.7 |
% |
Wolverine |
|
$58.8 |
|
|
$52.5 |
|
12.2 |
% |
Sweaty Betty |
|
$53.6 |
|
|
N/A |
|
N/A |
|
Reported: |
|
|
|
|
|
|||
Gross Margin |
42.5 |
% |
|
43.5 |
% |
(100 bps) |
||
Operating Margin |
3.2 |
% |
|
11.4 |
% |
(820 bps) |
||
Diluted Earnings Per Share |
$0.12 |
|
|
$0.45 |
|
(73.3 |
)% |
|
Non-GAAP: |
|
|
|
|
||||
Adjusted Gross Margin |
42.5 |
% |
|
44.3 |
% |
(180 bps) |
||
Adjusted Operating Margin |
8.1 |
% |
|
10.2 |
% |
(210 bps) |
||
Adjusted Diluted Earnings Per Share |
$0.41 |
|
|
$0.40 |
|
2.5 |
% |
On August 2, 2021, Wolverine Worldwide acquired women’s activewear brand Sweaty Betty, a digitally-native, premium global apparel brand, which will continue to fuel growth and enhance the Company’s eCommerce business. The information in the following table excludes Sweaty Betty.
Non-GAAP Organic (Excluding Sweaty Betty) |
|||||||
(in millions) |
4/2/2022 |
|
4/3/2021 |
Y/Y Change |
|||
Total Revenue |
$561.2 |
|
|
$510.7 |
|
9.9 |
% |
Organic Gross Margin |
41.5 |
% |
|
44.3 |
% |
(280 bps) |
|
Organic Operating Margin |
9.1 |
% |
|
10.2 |
% |
(110 bps) |
|
Organic Diluted Earnings Per Share |
$0.41 |
|
|
$0.40 |
|
2.5 |
% |
Revenue of $614.8 million reflected strong wholesale and international distributor sales. Direct-to-Consumer revenue increased 24% including Sweaty Betty and decreased 14% excluding Sweaty Betty.
Gross margin of 42.5% was in line with our internal plan and includes incremental supply chain costs and a revenue mix shift toward the international distributor business.
Selling, General & Administrative expenses of $241.7 million includes $30 million of net costs related to a legacy environmental matter. Adjusted SG&A expenses of $211.3 million are up $37 million due to an increase in variable costs on higher revenue, the addition of Sweaty Betty, and higher labor costs in our distribution centers.
Inventory at the end of the quarter was $483.3 million, up 50.6% versus the prior year. Excluding Sweaty Betty inventory increased 36.1% versus the prior year.
Total debt at the end of the quarter was $1,094.6 million. Total liquidity including cash and available borrowings under the Company's revolving line of credit was approximately $800 million.
Share repurchases: During the first quarter, approximately 1.4 million shares were repurchased at an average price of $24.37 per share. At the end of the quarter, the Company had nearly $413 million available under its board-approved share repurchase plan.
FULL-YEAR 2022 OUTLOOK
“We are encouraged by the strong start to the year with revenue and earnings per share exceeding our expectations,” said Mike Stornant, Executive Vice President and Chief Financial Officer. "Looking forward, the continued strong demand for our brands combined with improving inventory flow supports our reiteration of full-year revenue and EPS guidance.”
This outlook assumes no meaningful deterioration of current market conditions related to the COVID-19 pandemic during the remainder of 2022.
NON-GAAP FINANCIAL MEASURES Measures referred to in this release as “adjusted” financial results are non-GAAP measures that exclude environmental and other related costs net of recoveries and costs related to the COVID-19 pandemic including air freight costs. Measures referred to in this release as “adjusted organic” financial results are non-GAAP measures that exclude the results of Sweaty Betty. The Company also presents constant currency information, which is a non-GAAP measure that excludes the impact of fluctuations in foreign currency exchange rates. The Company calculates constant currency basis by converting the current-period local currency financial results using the prior period exchange rates and comparing these adjusted amounts to the Company's current period reported results. The Company believes providing each of these non-GAAP measures provides valuable supplemental information regarding its results of operations, consistent with how the Company evaluates performance.
The Company has provided a reconciliation of each of the above non-GAAP financial measures to the most directly comparable GAAP financial measure. The Company believes these non-GAAP measures provide useful information to both management and investors because they increase the comparability of current period results to prior period results by adjusting for certain items that may not be indicative of core operating results and enable better identification of trends in our business. The adjusted financial results are used by management to, and allow investors to, evaluate the operating performance of the Company on a comparable basis. The adjusted organic financial results are used by management to, and allow investors to, evaluate the aggregate operating performance of the Company’s brands other than Sweaty Betty. Management does not, nor should investors, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
EARNINGS CALL INFORMATION The Company will host a conference call today at 8:30 a.m. EST to discuss these results and current business trends. The conference call will be broadcast live and accessible under the “Investor Relations” tab at www.wolverineworldwide.com. A replay of the conference call will be available on the Company’s website for a period of approximately 30 days.
ABOUT WOLVERINE WORLDWIDE Founded in 1883 on the belief in the possibility of opportunity, Wolverine World Wide, Inc. (NYSE:WWW) is one of the world’s leading marketers and licensors of branded casual, active lifestyle, work, outdoor sport, athletic, children's and uniform footwear and apparel. Through a diverse portfolio of highly recognized brands, our products are designed to empower, engage and inspire our consumers every step of the way. The company’s portfolio includes Merrell®, Saucony®, Sweaty Betty®, Sperry®, Hush Puppies®, Wolverine®, Keds®, Chaco®, Bates®, HYTEST®, and Stride Rite®. Wolverine Worldwide is also the global footwear licensee of the popular brands Cat® and Harley-Davidson®. Based in Rockford, Michigan, for more than 130 years, the company's products are carried by leading retailers in the U.S. and globally in approximately 170 countries and territories. For additional information, please visit our website, www.wolverineworldwide.com or visit us on Facebook, LinkedIn, and Instagram.
FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements, including statements regarding the Company’s expectations regarding: its growth strategies and its outlook for fiscal year 2022 results including revenue, reported gross margin, reported and adjusted operating margin, effective tax rate and reported and adjusted diluted earnings per share as well as the Company's expectations that there will not be any meaningful deterioration of current market conditions related to the COVID-19 pandemic in 2022 and that Sweaty Betty will fuel growth and enhance the Company's eCommerce business. In addition, words such as “estimates,” “anticipates,” “believes,” “forecasts,” “step,” “plans,” “predicts,” “focused,” “projects,” “outlook,” “is likely,” “expects,” “intends,” “should,” “will,” “confident,” variations of such words, and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions (“Risk Factors”) that are difficult to predict with regard to timing, extent, likelihood, and degree of occurrence. Risk Factors include, among others: the effects of the COVID-19 pandemic on the Company’s business, operations, financial results and liquidity, including the duration and magnitude of such effects, which will depend on numerous evolving factors that the Company cannot currently accurately predict or assess, including: the duration and scope of the pandemic; the negative impact on global and regional markets, economies and economic activity, including the duration and magnitude of its impact on unemployment rates, consumer discretionary spending and levels of consumer confidence; actions governments, businesses and individuals take in response to the pandemic; the effects of the pandemic, including all of the foregoing, on the Company’s distributors, manufacturers, suppliers, joint venture partners, wholesale customers and other counterparties, and how quickly economies and demand for the Company’s products recover after the pandemic subsides; changes in general economic conditions, employment rates, business conditions, interest rates, tax policies and other factors affecting consumer spending in the markets and regions in which the Company’s products are sold; the inability for any reason to effectively compete in global footwear, apparel and consumer-direct markets; the inability to maintain positive brand images and anticipate, understand and respond to changing footwear and apparel trends and consumer preferences; the inability to effectively manage inventory levels; increases or changes in duties, tariffs, quotas or applicable assessments in countries of import and export; foreign currency exchange rate fluctuations; currency restrictions; supply chain or other capacity constraints, production disruptions, quality issues, price increases or other risks associated with foreign sourcing; the cost and availability of raw materials, inventories, services and labor for contract manufacturers; labor disruptions; changes in relationships with, including the loss of, significant wholesale customers; risks related to the significant investment in, and performance of, the Company’s consumer-direct operations; risks related to expansion into new markets and complementary product categories; the impact of seasonality and unpredictable weather conditions; changes in general economic conditions and/or the credit markets on the Company’s distributors, suppliers and retailers; increases in the Company’s effective tax rates; failure of licensees or distributors to meet planned annual sales goals or to make timely payments to the Company; the risks of doing business in developing countries, and politically or economically volatile areas; the ability to secure and protect owned intellectual property or use licensed intellectual property; the impact of regulation, regulatory and legal proceedings and legal compliance risks, including compliance with federal, state and local laws and regulations relating to the protection of the environment, environmental remediation and other related costs, and litigation or other legal proceedings relating to the protection of the environment or environmental effects on human health; the potential breach of the Company’s databases or other systems, or those of its vendors, which contain certain personal information, payment card data or proprietary information, due to cyberattack or other similar events; problems affecting the Company’s supply chain or distribution system, including service interruptions at shipping and receiving ports; strategic actions, including new initiatives and ventures, acquisitions and dispositions, and the Company’s success in integrating acquired businesses, and implementing new initiatives and ventures; the risk of impairment to goodwill and other intangibles; changes in future pension funding requirements and pension expenses; and additional factors discussed in the Company’s reports filed with the Securities and Exchange Commission and exhibits thereto. The foregoing Risk Factors, as well as other existing Risk Factors and new Risk Factors that emerge from time to time, may cause actual results to differ materially from those contained in any forward-looking statements. Given these or other risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Furthermore, the Company undertakes no obligation to update, amend, or clarify forward-looking statements.
WOLVERINE WORLD WIDE, INC. |
|||||||
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS |
|||||||
(Unaudited) |
|||||||
(In millions, except earnings per share) |
|||||||
|
Quarter Ended |
||||||
|
April 2,
|
|
April 3,
|
||||
Revenue |
$ |
614.8 |
|
|
$ |
510.7 |
|
Cost of goods sold |
|
353.5 |
|
|
|
288.4 |
|
Gross profit |
|
261.3 |
|
|
|
222.3 |
|
Gross margin |
|
42.5 |
% |
|
|
43.5 |
% |
|
|
|
|
||||
Selling, general and administrative expenses |
|
211.3 |
|
|
|
174.4 |
|
Environmental and other related costs, net of recoveries |
|
30.4 |
|
|
|
(10.2 |
) |
Operating expenses |
|
241.7 |
|
|
|
164.2 |
|
Operating expenses as a % of revenue |
|
39.3 |
% |
|
|
32.2 |
% |
|
|
|
|
||||
Operating profit |
|
19.6 |
|
|
|
58.1 |
|
Operating margin |
|
3.2 |
% |
|
|
11.4 |
% |
|
|
|
|
||||
Interest expense, net |
|
8.7 |
|
|
|
9.6 |
|
Other expense (income), net |
|
(1.1 |
) |
|
|
2.8 |
|
Total other expenses |
|
7.6 |
|
|
|
12.4 |
|
Earnings before income taxes |
|
12.0 |
|
|
|
45.7 |
|
|
|
|
|
||||
Income tax expense |
|
3.6 |
|
|
|
7.3 |
|
Effective tax rate |
|
30.4 |
% |
|
|
16.0 |
% |
|
|
|
|
||||
Net earnings |
|
8.4 |
|
|
|
38.4 |
|
|
|
|
|
||||
Less: net loss attributable to noncontrolling interests |
|
(1.3 |
) |
|
|
(0.1 |
) |
Net earnings attributable to Wolverine World Wide, Inc. |
$ |
9.7 |
|
|
$ |
38.5 |
|
Diluted earnings per share |
$ |
0.12 |
|
|
$ |
0.45 |
|
|
|
|
|
||||
Supplemental information: |
|
|
|
||||
Net earnings used to calculate diluted earnings per share |
$ |
9.5 |
|
|
$ |
37.8 |
|
Shares used to calculate diluted earnings per share |
|
81.9 |
|
|
|
83.2 |
|
WOLVERINE WORLD WIDE, INC. |
|||||
CONSOLIDATED CONDENSED BALANCE SHEETS |
|||||
(Unaudited) |
|||||
(In millions) |
|||||
|
April 2,
|
|
April 3,
|
||
ASSETS |
|
|
|
||
Cash and cash equivalents |
$ |
149.6 |
|
$ |
364.8 |
Accounts receivables, net |
|
370.6 |
|
|
323.6 |
Inventories, net |
|
483.3 |
|
|
320.9 |
Other current assets |
|
74.4 |
|
|
37.9 |
Total current assets |
|
1,077.9 |
|
|
1,047.2 |
Property, plant and equipment, net |
|
128.4 |
|
|
120.8 |
Lease right-of-use assets |
|
137.7 |
|
|
136.7 |
Goodwill and other indefinite-lived intangibles |
|
1,259.8 |
|
|
825.0 |
Other noncurrent assets |
|
142.2 |
|
|
137.6 |
Total assets |
$ |
2,746.0 |
|
$ |
2,267.3 |
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||
Accounts payable and other accrued liabilities |
$ |
567.2 |
|
$ |
454.1 |
Lease liabilities |
|
35.2 |
|
|
33.7 |
Current maturities of long-term debt |
|
10.0 |
|
|
10.0 |
Borrowings under revolving credit agreements |
|
355.0 |
|
|
— |
Total current liabilities |
|
967.4 |
|
|
497.8 |
Long-term debt |
|
729.6 |
|
|
710.4 |
Lease liabilities, noncurrent |
|
119.3 |
|
|
122.8 |
Other noncurrent liabilities |
|
314.4 |
|
|
311.2 |
Stockholders' equity |
|
615.3 |
|
|
625.1 |
Total liabilities and stockholders' equity |
$ |
2,746.0 |
|
$ |
2,267.3 |
WOLVERINE WORLD WIDE, INC. |
|||||||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS |
|||||||
(Unaudited) |
|||||||
(In millions) |
|||||||
|
Quarter Ended |
||||||
|
April 2,
|
|
April 3,
|
||||
OPERATING ACTIVITIES: |
|
|
|
||||
Net earnings |
$ |
8.4 |
|
|
$ |
38.4 |
|
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
8.5 |
|
|
|
7.2 |
|
Deferred income taxes |
|
(6.8 |
) |
|
|
1.0 |
|
Stock-based compensation expense |
|
10.3 |
|
|
|
10.0 |
|
Pension and SERP expense |
|
2.3 |
|
|
|
3.5 |
|
Environmental and other related costs, net of cash payments and recoveries received |
|
14.1 |
|
|
|
(0.2 |
) |
Other |
|
2.2 |
|
|
|
0.6 |
|
Changes in operating assets and liabilities |
|
(131.5 |
) |
|
|
(34.2 |
) |
Net cash provided by (used in) operating activities |
|
(92.5 |
) |
|
|
26.3 |
|
|
|
|
|
||||
INVESTING ACTIVITIES: |
|
|
|
||||
Additions to property, plant and equipment |
|
(7.5 |
) |
|
|
(2.2 |
) |
Other |
|
3.7 |
|
|
|
(0.5 |
) |
Net cash used in investing activities |
|
(3.8 |
) |
|
|
(2.7 |
) |
|
|
|
|
||||
FINANCING ACTIVITIES: |
|
|
|
||||
Payments under revolving credit agreements |
|
(37.0 |
) |
|
|
— |
|
Borrowings under revolving credit agreements |
|
167.0 |
|
|
|
— |
|
Payments on long-term debt |
|
(2.5 |
) |
|
|
(2.5 |
) |
Cash dividends paid |
|
(8.4 |
) |
|
|
(8.5 |
) |
Purchase of common stock for treasury |
|
(33.8 |
) |
|
|
— |
|
Employee taxes paid under stock-based compensation plans |
|
(7.1 |
) |
|
|
(9.2 |
) |
Proceeds from the exercise of stock options |
|
0.8 |
|
|
|
10.5 |
|
Contributions from noncontrolling interests |
|
7.0 |
|
|
|
4.8 |
|
Net cash provided by (used in) financing activities |
|
86.0 |
|
|
|
(4.9 |
) |
|
|
|
|
||||
Effect of foreign exchange rate changes |
|
(1.8 |
) |
|
|
(1.3 |
) |
Increase (decrease) in cash and cash equivalents |
|
(12.1 |
) |
|
|
17.4 |
|
|
|
|
|
||||
Cash and cash equivalents at beginning of the year |
|
161.7 |
|
|
|
347.4 |
|
Cash and cash equivalents at end of the quarter |
$ |
149.6 |
|
|
$ |
364.8 |
|
The following tables contain information regarding the non-GAAP financial measures used by the Company in the presentation of its financial results:
WOLVERINE WORLD WIDE, INC. |
|||||||||||||||||
Q1 2022 RECONCILIATION TABLES |
|||||||||||||||||
RECONCILIATION OF REPORTED REVENUE TO ADJUSTED |
|||||||||||||||||
REVENUE ON A CONSTANT CURRENCY BASIS* |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
(In millions) |
|||||||||||||||||
|
GAAP Basis
|
|
Foreign
|
|
Constant
|
|
GAAP Basis
|
|
Constant
|
|
Reported
|
||||||
REVENUE |
|
|
|
|
|
|
|
|
|
|
|
||||||
Wolverine Michigan Group |
$ |
329.3 |
|
$ |
2.1 |
|
$ |
331.4 |
|
$ |
297.7 |
|
11.3 |
% |
|
10.6 |
% |
Wolverine Boston Group |
|
212.3 |
|
|
1.8 |
|
|
214.1 |
|
|
200.9 |
|
6.6 |
% |
|
5.7 |
% |
Other |
|
73.2 |
|
|
— |
|
|
73.2 |
|
|
12.1 |
|
505.0 |
% |
|
505.0 |
% |
Total |
$ |
614.8 |
|
$ |
3.9 |
|
$ |
618.7 |
|
$ |
510.7 |
|
21.1 |
% |
|
20.4 |
% |
RECONCILIATION OF REPORTED REVENUE |
|||||
TO ADJUSTED ORGANIC REVENUE* |
|||||
(Unaudited) |
|||||
(In millions) |
|||||
|
GAAP Basis |
|
Sweaty Betty (1) |
|
Organic Basis |
|
|
|
|
|
|
Revenue - Fiscal 2022 Q1 |
$ 614.8 |
|
$ (53.6) |
|
$ 561.2 |
(1) |
Q1 2022 adjustment reflects the Sweaty Betty® results included in the consolidated condensed statement of operations. |
RECONCILIATION OF REPORTED DIRECT-TO-CONSUMER REVENUE GROWTH |
|||||
TO ADJUSTED ORGANIC DIRECT-TO-CONSUMER REVENUE GROWTH* |
|||||
(Unaudited) |
|||||
|
GAAP Basis |
|
Sweaty Betty (1) |
|
Organic Basis |
|
|
|
|
|
|
Direct-to-Consumer Revenue Growth (Decline) - Fiscal 2022 Q1 |
23.7 % |
|
38.0 % |
|
(14.3) % |
(1) |
Q1 2022 adjustment reflects the Sweaty Betty® results included in the consolidated condensed statement of operations. |
RECONCILIATION OF REPORTED GROSS MARGIN TO ADJUSTED GROSS | ||||||||||||||||||
MARGIN AND ADJUSTED ORGANIC GROSS MARGIN* |
||||||||||||||||||
(Unaudited) |
||||||||||||||||||
(In millions) |
||||||||||||||||||
|
GAAP Basis |
|
Adjustments (1) |
|
As Adjusted |
|
Sweaty Betty (2) |
|
Organic Basis |
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross Profit - Fiscal 2022 Q1 |
$ |
261.3 |
|
|
$ |
— |
|
$ |
261.3 |
|
|
$ |
(28.6 |
) |
|
$ |
232.7 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross margin |
|
42.5 |
% |
|
|
|
|
42.5 |
% |
|
|
|
|
41.5 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross Profit - Fiscal 2021 Q1 |
$ |
222.3 |
|
|
$ |
4.0 |
|
$ |
226.3 |
|
|
$ |
— |
|
|
$ |
226.3 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross margin |
|
43.5 |
% |
|
|
|
|
44.3 |
% |
|
|
|
|
44.3 |
% |
(1) |
Q1 2021 adjustments reflect $4.0 million of air freight charges related to production and shipping delays caused by the COVID-19 pandemic. |
|
(2) |
Q1 2022 adjustment reflects the Sweaty Betty® results included in the consolidated condensed statement of operations. |
RECONCILIATION OF REPORTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | |||||||||
TO ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES* |
|||||||||
(Unaudited) |
|||||||||
(In millions) |
|||||||||
|
GAAP Basis |
|
Adjustment (1) |
|
As Adjusted |
||||
|
|
|
|
|
|
||||
Selling, general and administrative expenses - Fiscal 2022 Q1 |
$ |
241.7 |
|
$ |
(30.4 |
) |
|
$ |
211.3 |
|
|
|
|
|
|
||||
Selling, general and administrative expenses - Fiscal 2021 Q1 |
$ |
164.2 |
|
$ |
10.2 |
|
|
$ |
174.4 |
(1) |
Q1 2022 adjustments reflect $30.4 million of environmental and other related costs net of recoveries. Q1 2021 adjustments reflect $(10.2) million of environmental and other related costs net of recoveries. |
RECONCILIATION OF REPORTED OPERATING MARGIN TO ADJUSTED OPERATING | ||||||||||||||||||
MARGIN AND ADJUSTED ORGANIC OPERATING MARGIN* |
||||||||||||||||||
(Unaudited) |
||||||||||||||||||
(In millions) |
||||||||||||||||||
|
GAAP Basis |
|
Adjustments (1) |
|
As Adjusted |
|
Sweaty Betty (2) |
|
Organic Basis |
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating Profit - Fiscal 2022 Q1 |
$ |
19.6 |
|
|
$ |
30.4 |
|
|
$ |
50.0 |
|
|
$ |
1.2 |
|
$ |
51.2 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating margin |
|
3.2 |
% |
|
|
|
|
8.1 |
% |
|
|
|
|
9.1 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating Profit - Fiscal 2021 Q1 |
$ |
58.1 |
|
|
$ |
(6.2 |
) |
|
$ |
51.9 |
|
|
$ |
— |
|
$ |
51.9 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating margin |
|
11.4 |
% |
|
|
|
|
10.2 |
% |
|
|
|
|
10.2 |
% |
(1)
|
Q1 2022 adjustments reflect $30.4 million of environmental and other related costs net of recoveries. Q1 2021 adjustments reflect $4.0 million of air freight charges related to production and shipping delays caused by the COVID-19 pandemic and $(10.2) million of environmental and other related costs net of recoveries. |
|
(2) |
Q1 2022 adjustment reflects the Sweaty Betty® results included in the consolidated condensed statement of operations. |
RECONCILIATION OF REPORTED INVENTORY | |||||||||
TO ADJUSTED ORGANIC INVENTORY* |
|||||||||
(Unaudited) |
|||||||||
(In millions) |
|||||||||
|
GAAP Basis |
|
Sweaty Betty (1) |
|
Organic Basis |
||||
|
|
|
|
|
|
||||
Inventories, net - Fiscal 2022 Q1 |
$ |
483.3 |
|
$ |
(46.7 |
) |
|
$ |
436.6 |
|
|
|
|
|
|
||||
Inventories, net - Fiscal 2021 Q1 |
$ |
320.9 |
|
$ |
— |
|
|
$ |
320.9 |
. |
|||||||||
(1) |
Q1 2022 adjustment reflects the Sweaty Betty® inventories included in the consolidated condensed balance sheet. |
RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED | ||||||||||||||||
DILUTED EPS ON A CONSTANT CURRENCY BASIS* |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
GAAP Basis |
|
Adjustments (1) |
|
As Adjusted |
|
Foreign
|
|
As Adjusted
|
|||||||
|
|
|
|
|
|
|
|
|
|
|||||||
EPS - Fiscal 2022 Q1 |
$ |
0.12 |
|
$ |
0.29 |
|
|
$ |
0.41 |
|
$ |
(0.01 |
) |
|
$ |
0.40 |
|
|
|
|
|
|
|
|
|
|
|||||||
EPS - Fiscal 2021 Q1 |
$ |
0.45 |
|
$ |
(0.05 |
) |
|
$ |
0.40 |
|
|
|
|
|||
|
||||||||||||||||
(1)
|
Q1 2022 adjustments reflect environmental and other related costs net of recoveries. Q1 2021 adjustments reflect air freight charges related to production and shipping delays caused by the COVID-19 pandemic and environmental and other related costs net of recoveries. |
RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED | |||||||||||||||
DILUTED EPS AND ADJUSTED ORGANIC DILUTED EPS* |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
GAAP Basis |
|
Adjustments (1) |
|
As Adjusted |
|
Sweaty Betty (2) |
|
Adjusted
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||
EPS - Fiscal 2022 Q1 |
$ |
0.12 |
|
$ |
0.29 |
|
|
$ |
0.41 |
|
$ |
— |
|
$ |
0.41 |
|
|
|
|
|
|
|
|
|
|
||||||
EPS - Fiscal 2021 Q1 |
$ |
0.45 |
|
$ |
(0.05 |
) |
|
$ |
0.40 |
|
$ |
— |
|
$ |
0.40 |
(1)
|
Q1 2022 adjustments reflect environmental and other related costs net of recoveries. Q1 2021 air freight charges related to production and shipping delays caused by the COVID-19 pandemic and environmental and other related costs net of recoveries. |
|
(2) |
Q1 2022 adjustment reflects the Sweaty Betty® results included in the consolidated condensed statement of operations. |
2022 GUIDANCE RECONCILIATION TABLES | ||||||||
RECONCILIATION OF REPORTED OPERATING MARGIN GUIDANCE TO ADJUSTED OPERATING MARGIN GUIDANCE, REPORTED DILUTED EPS GUIDANCE TO ADJUSTED DILUTED EPS |
||||||||
GUIDANCE AND SUPPLEMENTAL INFORMATION* |
||||||||
(Unaudited) |
||||||||
(In millions, except earnings per share) |
||||||||
|
GAAP Basis |
|
Adjustments (1) |
|
As Adjusted |
|||
|
|
|
|
|
|
|||
Operating Margin - Fiscal 2022 Full Year |
10.2 |
% |
|
0.8 |
% |
|
11.0 |
% |
|
|
|
|
|
|
|||
Dilutive EPS - Fiscal 2022 Full Year |
$ 2.30 - $2.45 |
|
$0.20 |
|
|
$ 2.50 - $2.65 |
||
|
|
|
|
|
|
|||
Fiscal 2022 Full Year Supplemental information: |
|
|
|
|
|
|||
|
|
|
|
|
|
|||
Net Earnings |
$190 - $203 |
|
$16 |
|
|
$206 - $219 |
||
|
|
|
|
|
|
|||
Net Earnings used to calculate diluted earnings per share |
$187 - $200 |
|
$16 |
|
|
$203 - $216 |
||
|
|
|
|
|
|
|||
Shares used to calculate diluted earnings per share |
81.4 |
|
|
|
|
81.4 |
|
(1) |
2022 adjustments reflect estimated environmental and other related costs net of recoveries and estimated Sweaty Betty® integration costs. |
* To supplement the consolidated condensed financial statements presented in accordance with Generally Accepted Accounting Principles ("GAAP"), the Company describes what certain financial measures would have been if, costs associated with the acquisition of the Sweaty Betty® brand, environmental and other related costs net of recoveries and air freight costs related to the COVID-19 pandemic were excluded. The Company also describes what certain financial measures would have been if the previously described financial measures also excluded the results of Sweaty Betty®. The Company believes these non-GAAP measures provide useful information to both management and investors by increasing comparability to the prior period by adjusting for certain items that may not be indicative of core operating measures and to better identify trends in the Company's business. The adjusted financial results are used by management to, and allow investors to, evaluate the operating performance of the Company on a comparable basis.
The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. The Company believes providing constant currency information provides valuable supplemental information regarding results of operations, consistent with how the Company evaluates performance. The Company calculates constant currency by converting the current-period local currency financial results using the prior period exchange rates and comparing these adjusted amounts to the Company's current period reported results.
Management does not, nor should investors, consider such non-GAAP financial measures in isolation from, or as a substitution for, financial information prepared in accordance with GAAP. A reconciliation of all non-GAAP measures included in this press release, to the most directly comparable GAAP measures are found in the financial tables above.
Выручка за первый квартал в размере 615 миллионов долларов выросла на 20% при сохранении динамики среди брендов
РОКФОРД, Мичиган - (BUSINESS WIRE) -Wolverine World Wide, Inc. (NYSE: WWW) сегодня сообщила о финансовых результатах за первый квартал, закончившийся 2 апреля 2022 года.
“Мы добились высоких финансовых результатов в этом квартале, несмотря на сохраняющиеся проблемы в цепочке поставок и макроэкономические трудности”, - сказал Брендан Хоффман, президент и главный исполнительный директор Wolverine Worldwide. “Выручка и операционная маржа превзошли ожидания, несмотря на давление на валовую прибыль, связанное с более высокими затратами на цепочку поставок и изменением структуры каналов сбыта. Нас обнадеживает сохраняющийся высокий спрос на различные бренды, а также планируемые запуски новых продуктов и мощные маркетинговые инициативы, которые вызовут еще больший ажиотаж среди потребителей. Заглядывая в будущее, мы по-прежнему привержены продвижению наших основных стратегий роста с более целенаправленным подходом к исполнению, поскольку мы извлекаем выгоду из благоприятного отраслевого фона в категориях outdoor, performance и work ”.
FIRST-QUARTER 2022 FINANCIAL HIGHLIGHTS |
||||||||
(in millions) |
4/2/2022 |
|
4/3/2021 |
Y/Y Change |
||||
Michigan Group |
|
$329.3 |
|
|
$297.7 |
|
10.6 |
% |
Boston Group |
|
$212.3 |
|
|
$200.9 |
|
5.7 |
% |
Other |
|
$73.2 |
|
|
$12.1 |
|
505.0 |
% |
Total Revenue |
$614.8 |
|
|
$510.7 |
|
20.4 |
% |
|
Supplemental Brand Information |
|
|
|
|||||
Merrell |
|
$147.9 |
|
|
$150.2 |
|
(1.5 |
)% |
Saucony |
|
$106.4 |
|
|
$102.6 |
|
3.7 |
% |
Sperry |
|
$67.4 |
|
|
$56.8 |
|
18.7 |
% |
Wolverine |
|
$58.8 |
|
|
$52.5 |
|
12.2 |
% |
Sweaty Betty |
|
$53.6 |
|
|
N/A |
|
N/A |
|
Reported: |
|
|
|
|
|
|||
Gross Margin |
42.5 |
% |
|
43.5 |
% |
(100 bps) |
||
Operating Margin |
3.2 |
% |
|
11.4 |
% |
(820 bps) |
||
Diluted Earnings Per Share |
$0.12 |
|
|
$0.45 |
|
(73.3 |
)% |
|
Non-GAAP: |
|
|
|
|
||||
Adjusted Gross Margin |
42.5 |
% |
|
44.3 |
% |
(180 bps) |
||
Adjusted Operating Margin |
8.1 |
% |
|
10.2 |
% |
(210 bps) |
||
Adjusted Diluted Earnings Per Share |
$0.41 |
|
|
$0.40 |
|
2.5 |
% |
2 августа 2021 года Wolverine Worldwide приобрела бренд женской спортивной одежды Sweaty Betty, глобальный бренд одежды премиум-класса, основанный на цифровых технологиях, который продолжит стимулировать рост и расширять бизнес электронной коммерции Компании. Информация в следующей таблице исключает Потную Бетти.
Non-GAAP Organic (Excluding Sweaty Betty) |
|||||||
(in millions) |
4/2/2022 |
|
4/3/2021 |
Y/Y Change |
|||
Total Revenue |
$561.2 |
|
|
$510.7 |
|
9.9 |
% |
Organic Gross Margin |
41.5 |
% |
|
44.3 |
% |
(280 bps) |
|
Organic Operating Margin |
9.1 |
% |
|
10.2 |
% |
(110 bps) |
|
Organic Diluted Earnings Per Share |
$0.41 |
|
|
$0.40 |
|
2.5 |
% |
Выручка в размере 614,8 млн долларов США отражает высокие оптовые и международные дистрибьюторские продажи. Доход от прямых продаж потребителям увеличился на 24%, включая Sweaty Betty, и снизился на 14%, исключая Sweaty Betty.
Валовая прибыль в размере 42,5% соответствовала нашему внутреннему плану и включает дополнительные затраты на цепочку поставок и смещение структуры доходов в сторону международного дистрибьюторского бизнеса.
Коммерческие, общие и административные расходы в размере 241,7 млн. долларов США включают чистые расходы в размере 30 млн. долларов США, связанные с унаследованным экологическим вопросом. Скорректированные расходы на НИОКР в размере 211,3 млн долл. увеличились на 37 млн долл. из-за увеличения переменных затрат в связи с увеличением выручки, добавлением Sweaty Betty и более высокими затратами на рабочую силу в наших распределительных центрах.
Запасы на конец квартала составили 483,3 миллиона долларов, что на 50,6% больше, чем годом ранее. Без учета Sweaty Betty запасы увеличились на 36,1% по сравнению с предыдущим годом.
Общий долг на конец квартала составил 1 094,6 миллиона долларов. Общая ликвидность, включая денежные средства и доступные займы в рамках возобновляемой кредитной линии Компании, составила около 800 миллионов долларов.
Выкуп акций: В течение первого квартала было выкуплено около 1,4 миллиона акций по средней цене 24,37 доллара за акцию. В конце квартала Компания располагала почти 413 миллионами долларов в соответствии с утвержденным советом директоров планом обратного выкупа акций.
прогноз на весь 2022 год
“Мы воодушевлены успешным началом года, когда выручка и прибыль на акцию превзошли наши ожидания”, - сказал Майк Сторнант, исполнительный вице-президент и финансовый директор. "Заглядывая в будущее, можно сказать, что сохраняющийся высокий спрос на наши бренды в сочетании с улучшением движения товарных запасов поддерживает наш прогноз по годовой выручке и прибыли на акцию”.
Этот прогноз не предполагает существенного ухудшения текущих рыночных условий, связанных с пандемией COVID-19, в течение оставшейся части 2022 года.
ФИНАНСОВЫЕ ПОКАЗАТЕЛИ, НЕ ОТНОСЯЩИЕСЯ К ОПБУ Меры, упомянутые в этом выпуске как “скорректированные” финансовые результаты, являются мерами, не относящимися к GAAP, которые исключают экологические и другие связанные с ними расходы за вычетом возмещения и расходов, связанных с пандемией COVID-19, включая расходы на авиаперевозки. Показатели, упомянутые в этом выпуске как “скорректированные органические” финансовые результаты, являются показателями, не относящимися к GAAP, которые исключают результаты Sweaty Betty. Компания также представляет информацию о постоянной валюте, которая является показателем, не относящимся к GAAP, и исключает влияние колебаний валютных курсов. Компания рассчитывает на основе постоянной валюты путем преобразования финансовых результатов текущего периода в местной валюте с использованием обменных курсов предыдущего периода и сравнения этих скорректированных сумм с отчетными результатами Компании за текущий период. Компания считает, что предоставление каждого из этих показателей, не относящихся к GAAP, предоставляет ценную дополнительную информацию о результатах ее деятельности в соответствии с тем, как Компания оценивает результаты деятельности.
Компания предоставила сверку каждого из вышеуказанных финансовых показателей, не относящихся к GAAP, с наиболее непосредственно сопоставимым финансовым показателем GAAP. Компания считает, что эти показатели, не относящиеся к GAAP, предоставляют полезную информацию как руководству, так и инвесторам, поскольку они повышают сопоставимость результатов текущего периода с результатами предыдущего периода за счет корректировки на определенные статьи, которые могут не отражать основные операционные результаты, и позволяют лучше идентифицировать тенденции в нашем бизнесе. Скорректированные финансовые результаты используются руководством и позволяют инвесторам оценивать операционные показатели Компании на сопоставимой основе. Скорректированные органические финансовые результаты используются руководством и позволяют инвесторам оценивать совокупные операционные показатели брендов Компании, отличных от Sweaty Betty. Руководство и инвесторы не должны рассматривать такие финансовые показатели, не относящиеся к ОПБУ, в отрыве от финансовой информации, подготовленной в соответствии с ОПБУ, или в качестве замены для нее.
ИНФОРМАЦИЯ О ЗВОНКАХ ПО ЗАРАБОТКУ Компания проведет селекторное совещание сегодня в 8:30 утра по восточному времени, чтобы обсудить эти результаты и текущие тенденции в бизнесе. Конференц-связь будет транслироваться в прямом эфире и доступна на вкладке “Связи с инвесторами” по адресу www.wolverineworldwide.com . Запись телефонной конференции будет доступна на веб-сайте Компании в течение примерно 30 дней.
О РОСОМАХЕ ПО ВСЕМУ МИРУ Основанная в 1883 году на вере в возможность возможностей, Wolverine World Wide, Inc. (NYSE:WWW) является одним из ведущих мировых маркетологов и лицензиаров брендовой повседневной, активной, рабочей, спортивной, спортивной, детской и униформной обуви и одежды. Благодаря разнообразному портфолио признанных брендов наши продукты предназначены для расширения возможностей, привлечения и вдохновения наших потребителей на каждом шагу. Портфель продуктов компании включает Merrell®, Saucony®, Sweaty Betty®, Sperry®, Hush Puppies®, Wolverine®, Keds®, Chaco®, Bates®, HYTEST® и Stride Rite®. Wolverine Worldwide также является глобальным лицензиатом обуви популярных брендов Cat® и Harley-Davidson®. Основанная в Рокфорде, штат Мичиган, уже более 130 лет, продукция компании поставляется ведущими розничными торговцами в США и по всему миру примерно в 170 странах и территориях. Для получения дополнительной информации, пожалуйста, посетите наш веб-сайт, www.wolverineworldwide.com или посетите нас на Facebook, LinkedIn и Instagram.
ПРОГНОЗНЫЕ ЗАЯВЛЕНИЯ Настоящий пресс-релиз содержит заявления прогнозного характера, в том числе заявления относительно ожиданий Компании в отношении: ее стратегии роста и прогнозов на 2022 финансовый год, включая выручку, заявленную валовую прибыль, заявленную и скорректированную операционную маржу, эффективную налоговую ставку и заявленную и скорректированную разводненную прибыль на акцию, а также ожидания Компании что в 2022 году не произойдет какого-либо существенного ухудшения текущих рыночных условий, связанных с пандемией COVID-19, и что Sweaty Betty будет способствовать росту и расширению бизнеса электронной коммерции Компании. Кроме того, такие слова, как “оценивает”, “ожидает”, “полагает”, “прогнозирует”, “шаг”, “планирует”, “прогнозирует”, “сосредоточен”, “проекты”, “перспективы”, “вероятно”, “ожидает”, “намеревается”, “должен”, “будет”, “уверен”, варианты таких слов и подобные выражения предназначены для идентификации прогнозных заявлений. Эти заявления не являются гарантией будущих результатов и связаны с определенными рисками, неопределенностями и допущениями (“Факторы риска”), которые трудно предсказать в отношении сроков, масштабов, вероятности и степени возникновения. Факторы риска включают, среди прочего: последствия COVID-19 пандемии на бизнес компании, ее финансовые результаты и ликвидность, в том числе продолжительность и масштабы таких последствий, что будет зависеть от многочисленных меняющихся факторов, что компания в настоящее время невозможно точно предсказать или оценить, в том числе: продолжительность и масштабы пандемии, и негативное влияние на глобальные и региональные рынки, экономики и экономической деятельности, в том числе продолжительность и масштабы его влияния на уровень безработицы, потребительские дискреционные расходы и уровень доверия потребителей; действия правительств, юридических и физических лиц принять в ответ на пандемию; последствия пандемии, в том числе все вышеизложенное, на фирменном дистрибьюторы, производители, поставщики, партнеры по совместному предприятию, оптовыми покупателями и другими контрагентами, и как быстро экономики и спроса на продукцию предприятия и восстановления после пандемии спадет; изменения в общие экономические условия, уровень занятости, бизнес-условия, процентные ставки, налоговой политики и другие факторы, влияющие на потребительские расходы на рынках и в регионах, в которых продукция компании продается; невозможность по какой-либо причине, чтобы эффективно конкурировать на глобальных обуви, одежды и потребительских прямой рынках; отсутствие возможности поддержания положительного имиджа торговых марок, предвидеть, понимать и реагировать на меняющиеся обуви и одежды тенденций и потребительских предпочтений; отсутствие возможности эффективно управлять уровня запасов; увеличение или изменение пошлины, тарифы, квоты или соответствующих оценок в страны импорта и экспорта; колебаний курсов обмена иностранных валют; валютные ограничения; цепочки поставок или других ограничений потенциала, производственных сбоев, проблем с качеством, рост цен или других рисков, связанных с иностранных источников; стоимость и доступность сырья, ТМЦ, услуг и рабочей силы для контрактных производителей; трудовые нарушения; изменения в отношениях, в том числе утрату значительных оптовых клиентов; риски, связанные с существенным инвестиций и производительности, предприятие потребительской прямой операций; риски, связанные с экспансией на новые рынки и дополнительных товарных категорий; влияние сезонности и непредсказуемых погодных условий; изменения общих экономических условий и/или кредитных рынков на дистрибьюторами и поставщиками; увеличивает в компании по эффективной налоговой ставки; отказ лицензиаты и дистрибьюторы для удовлетворения плановой годовой объем продаж цели и принимать своевременные выплаты компании; риски ведения бизнеса в развивающихся странах, и политически или экономически нестабильных районах; способность обеспечить и защитить принадлежащее на интеллектуальную собственность или использование лицензированной интеллектуальной собственности; влияние регулирования, нормативных и процессуальных действий и правовой комплаенс-рисков, в том числе в соответствии с федеральными, государственные и местные законы и правила, касающиеся охраны окружающей среды, экологической реабилитации и другие расходы, а также судебные разбирательства или судебные разбирательства, связанные с защитой окружающей среды или окружающей среды на здоровье человека, возможные нарушения в компании баз данных или других систем, или его поставщиками, которые содержат определенные личные данные, платежные данные карты или служебную информацию, из-за кибератаки или другие подобные события; проблемы цепочки поставок компании, или газораспределительной системы, в том числе перебои в доставке и получению соединений; стратегические действия, в том числе новых инициатив и мероприятий, приобретения и отчуждения и успешность интеграции приобретенных компаний, а также реализации новых инициатив и начинаний; риск обесценения гудвила и других нематериальных активов; изменения в будущем пенсионных фондов требованиям и пенсионные расходы, и иные факторы, рассмотренные в отчетах, подаваемых в комиссию по ценным бумагам и биржам и проявляет к ним. Вышеуказанные Факторы риска, а также другие существующие Факторы Риска и новые Факторы риска, которые время от времени возникают, могут привести к тому, что фактические результаты будут существенно отличаться от тех, которые содержатся в любых прогнозных заявлениях. Учитывая эти или другие риски и неопределенности, инвесторам не следует чрезмерно полагаться на прогнозные заявления в качестве прогноза фактических результатов. Кроме того, Компания не берет на себя никаких обязательств по обновлению, изменению или уточнению прогнозных заявлений.
Wolverine World Wide, INC. |
|||||||
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS |
|||||||
(Unaudited) |
|||||||
(In millions, except earnings per share) |
|||||||
|
Quarter Ended |
||||||
|
April 2,
|
|
April 3,
|
||||
Revenue |
$ |
614.8 |
|
|
$ |
510.7 |
|
Cost of goods sold |
|
353.5 |
|
|
|
288.4 |
|
Gross profit |
|
261.3 |
|
|
|
222.3 |
|
Gross margin |
|
42.5 |
% |
|
|
43.5 |
% |
|
|
|
|
||||
Selling, general and administrative expenses |
|
211.3 |
|
|
|
174.4 |
|
Environmental and other related costs, net of recoveries |
|
30.4 |
|
|
|
(10.2 |
) |
Operating expenses |
|
241.7 |
|
|
|
164.2 |
|
Operating expenses as a % of revenue |
|
39.3 |
% |
|
|
32.2 |
% |
|
|
|
|
||||
Operating profit |
|
19.6 |
|
|
|
58.1 |
|
Operating margin |
|
3.2 |
% |
|
|
11.4 |
% |
|
|
|
|
||||
Interest expense, net |
|
8.7 |
|
|
|
9.6 |
|
Other expense (income), net |
|
(1.1 |
) |
|
|
2.8 |
|
Total other expenses |
|
7.6 |
|
|
|
12.4 |
|
Earnings before income taxes |
|
12.0 |
|
|
|
45.7 |
|
|
|
|
|
||||
Income tax expense |
|
3.6 |
|
|
|
7.3 |
|
Effective tax rate |
|
30.4 |
% |
|
|
16.0 |
% |
|
|
|
|
||||
Net earnings |
|
8.4 |
|
|
|
38.4 |
|
|
|
|
|
||||
Less: net loss attributable to noncontrolling interests |
|
(1.3 |
) |
|
|
(0.1 |
) |
Net earnings attributable to Wolverine World Wide, Inc. |
$ |
9.7 |
|
|
$ |
38.5 |
|
Diluted earnings per share |
$ |
0.12 |
|
|
$ |
0.45 |
|
|
|
|
|
||||
Supplemental information: |
|
|
|
||||
Net earnings used to calculate diluted earnings per share |
$ |
9.5 |
|
|
$ |
37.8 |
|
Shares used to calculate diluted earnings per share |
|
81.9 |
|
|
|
83.2 |
|
Wolverine World Wide, INC. |
|||||
CONSOLIDATED CONDENSED BALANCE SHEETS |
|||||
(Unaudited) |
|||||
(In millions) |
|||||
|
April 2,
|
|
April 3,
|
||
ASSETS |
|
|
|
||
Cash and cash equivalents |
$ |
149.6 |
|
$ |
364.8 |
Accounts receivables, net |
|
370.6 |
|
|
323.6 |
Inventories, net |
|
483.3 |
|
|
320.9 |
Other current assets |
|
74.4 |
|
|
37.9 |
Total current assets |
|
1,077.9 |
|
|
1,047.2 |
Property, plant and equipment, net |
|
128.4 |
|
|
120.8 |
Lease right-of-use assets |
|
137.7 |
|
|
136.7 |
Goodwill and other indefinite-lived intangibles |
|
1,259.8 |
|
|
825.0 |
Other noncurrent assets |
|
142.2 |
|
|
137.6 |
Total assets |
$ |
2,746.0 |
|
$ |
2,267.3 |
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||
Accounts payable and other accrued liabilities |
$ |
567.2 |
|
$ |
454.1 |
Lease liabilities |
|
35.2 |
|
|
33.7 |
Current maturities of long-term debt |
|
10.0 |
|
|
10.0 |
Borrowings under revolving credit agreements |
|
355.0 |
|
|
— |
Total current liabilities |
|
967.4 |
|
|
497.8 |
Long-term debt |
|
729.6 |
|
|
710.4 |
Lease liabilities, noncurrent |
|
119.3 |
|
|
122.8 |
Other noncurrent liabilities |
|
314.4 |
|
|
311.2 |
Stockholders' equity |
|
615.3 |
|
|
625.1 |
Total liabilities and stockholders' equity |
$ |
2,746.0 |
|
$ |
2,267.3 |
Wolverine World Wide, INC. |
|||||||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS |
|||||||
(Unaudited) |
|||||||
(In millions) |
|||||||
|
Quarter Ended |
||||||
|
April 2,
|
|
April 3,
|
||||
OPERATING ACTIVITIES: |
|
|
|
||||
Net earnings |
$ |
8.4 |
|
|
$ |
38.4 |
|
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
8.5 |
|
|
|
7.2 |
|
Deferred income taxes |
|
(6.8 |
) |
|
|
1.0 |
|
Stock-based compensation expense |
|
10.3 |
|
|
|
10.0 |
|
Pension and SERP expense |
|
2.3 |
|
|
|
3.5 |
|
Environmental and other related costs, net of cash payments and recoveries received |
|
14.1 |
|
|
|
(0.2 |
) |
Other |
|
2.2 |
|
|
|
0.6 |
|
Changes in operating assets and liabilities |
|
(131.5 |
) |
|
|
(34.2 |
) |
Net cash provided by (used in) operating activities |
|
(92.5 |
) |
|
|
26.3 |
|
|
|
|
|
||||
INVESTING ACTIVITIES: |
|
|
|
||||
Additions to property, plant and equipment |
|
(7.5 |
) |
|
|
(2.2 |
) |
Other |
|
3.7 |
|
|
|
(0.5 |
) |
Net cash used in investing activities |
|
(3.8 |
) |
|
|
(2.7 |
) |
|
|
|
|
||||
FINANCING ACTIVITIES: |
|
|
|
||||
Payments under revolving credit agreements |
|
(37.0 |
) |
|
|
— |
|
Borrowings under revolving credit agreements |
|
167.0 |
|
|
|
— |
|
Payments on long-term debt |
|
(2.5 |
) |
|
|
(2.5 |
) |
Cash dividends paid |
|
(8.4 |
) |
|
|
(8.5 |
) |
Purchase of common stock for treasury |
|
(33.8 |
) |
|
|
— |
|
Employee taxes paid under stock-based compensation plans |
|
(7.1 |
) |
|
|
(9.2 |
) |
Proceeds from the exercise of stock options |
|
0.8 |
|
|
|
10.5 |
|
Contributions from noncontrolling interests |
|
7.0 |
|
|
|
4.8 |
|
Net cash provided by (used in) financing activities |
|
86.0 |
|
|
|
(4.9 |
) |
|
|
|
|
||||
Effect of foreign exchange rate changes |
|
(1.8 |
) |
|
|
(1.3 |
) |
Increase (decrease) in cash and cash equivalents |
|
(12.1 |
) |
|
|
17.4 |
|
|
|
|
|
||||
Cash and cash equivalents at beginning of the year |
|
161.7 |
|
|
|
347.4 |
|
Cash and cash equivalents at end of the quarter |
$ |
149.6 |
|
|
$ |
364.8 |
|
Следующие таблицы содержат информацию о финансовых показателях, не относящихся к GAAP, используемых Компанией при представлении своих финансовых результатов:
Wolverine World Wide, INC. |
|||||||||||||||||
Q1 2022 RECONCILIATION TABLES |
|||||||||||||||||
RECONCILIATION OF REPORTED REVENUE TO ADJUSTED |
|||||||||||||||||
REVENUE ON A CONSTANT CURRENCY BASIS* |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
(In millions) |
|||||||||||||||||
|
GAAP Basis
|
|
Foreign
|
|
Constant
|
|
GAAP Basis
|
|
Constant
|
|
Reported
|
||||||
REVENUE |
|
|
|
|
|
|
|
|
|
|
|
||||||
Wolverine Michigan Group |
$ |
329.3 |
|
$ |
2.1 |
|
$ |
331.4 |
|
$ |
297.7 |
|
11.3 |
% |
|
10.6 |
% |
Wolverine Boston Group |
|
212.3 |
|
|
1.8 |
|
|
214.1 |
|
|
200.9 |
|
6.6 |
% |
|
5.7 |
% |
Other |
|
73.2 |
|
|
— |
|
|
73.2 |
|
|
12.1 |
|
505.0 |
% |
|
505.0 |
% |
Total |
$ |
614.8 |
|
$ |
3.9 |
|
$ |
618.7 |
|
$ |
510.7 |
|
21.1 |
% |
|
20.4 |
% |
RECONCILIATION OF REPORTED REVENUE |
|||||
TO ADJUSTED ORGANIC REVENUE* |
|||||
(Unaudited) |
|||||
(In millions) |
|||||
|
GAAP Basis |
|
Sweaty Betty (1) |
|
Organic Basis |
|
|
|
|
|
|
Revenue - Fiscal 2022 Q1 |
$ 614.8 |
|
$ (53.6) |
|
$ 561.2 |
(1) |
Q1 2022 adjustment reflects the Sweaty Betty® results included in the consolidated condensed statement of operations. |
RECONCILIATION OF REPORTED DIRECT-TO-CONSUMER REVENUE GROWTH |
|||||
TO ADJUSTED ORGANIC DIRECT-TO-CONSUMER REVENUE GROWTH* |
|||||
(Unaudited) |
|||||
|
GAAP Basis |
|
Sweaty Betty (1) |
|
Organic Basis |
|
|
|
|
|
|
Direct-to-Consumer Revenue Growth (Decline) - Fiscal 2022 Q1 |
23.7 % |
|
38.0 % |
|
(14.3) % |
(1) |
Q1 2022 adjustment reflects the Sweaty Betty® results included in the consolidated condensed statement of operations. |
RECONCILIATION OF REPORTED GROSS MARGIN TO ADJUSTED GROSS | ||||||||||||||||||
MARGIN AND ADJUSTED ORGANIC GROSS MARGIN* |
||||||||||||||||||
(Unaudited) |
||||||||||||||||||
(In millions) |
||||||||||||||||||
|
GAAP Basis |
|
Adjustments (1) |
|
As Adjusted |
|
Sweaty Betty (2) |
|
Organic Basis |
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross Profit - Fiscal 2022 Q1 |
$ |
261.3 |
|
|
$ |
— |
|
$ |
261.3 |
|
|
$ |
(28.6 |
) |
|
$ |
232.7 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross margin |
|
42.5 |
% |
|
|
|
|
42.5 |
% |
|
|
|
|
41.5 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross Profit - Fiscal 2021 Q1 |
$ |
222.3 |
|
|
$ |
4.0 |
|
$ |
226.3 |
|
|
$ |
— |
|
|
$ |
226.3 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross margin |
|
43.5 |
% |
|
|
|
|
44.3 |
% |
|
|
|
|
44.3 |
% |
(1) |
Q1 2021 adjustments reflect $4.0 million of air freight charges related to production and shipping delays caused by the COVID-19 pandemic. |
|
(2) |
Q1 2022 adjustment reflects the Sweaty Betty® results included in the consolidated condensed statement of operations. |
RECONCILIATION OF REPORTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | |||||||||
TO ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES* |
|||||||||
(Unaudited) |
|||||||||
(In millions) |
|||||||||
|
GAAP Basis |
|
Adjustment (1) |
|
As Adjusted |
||||
|
|
|
|
|
|
||||
Selling, general and administrative expenses - Fiscal 2022 Q1 |
$ |
241.7 |
|
$ |
(30.4 |
) |
|
$ |
211.3 |
|
|
|
|
|
|
||||
Selling, general and administrative expenses - Fiscal 2021 Q1 |
$ |
164.2 |
|
$ |
10.2 |
|
|
$ |
174.4 |
(1) |
Q1 2022 adjustments reflect $30.4 million of environmental and other related costs net of recoveries. Q1 2021 adjustments reflect $(10.2) million of environmental and other related costs net of recoveries. |
RECONCILIATION OF REPORTED OPERATING MARGIN TO ADJUSTED OPERATING | ||||||||||||||||||
MARGIN AND ADJUSTED ORGANIC OPERATING MARGIN* |
||||||||||||||||||
(Unaudited) |
||||||||||||||||||
(In millions) |
||||||||||||||||||
|
GAAP Basis |
|
Adjustments (1) |
|
As Adjusted |
|
Sweaty Betty (2) |
|
Organic Basis |
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating Profit - Fiscal 2022 Q1 |
$ |
19.6 |
|
|
$ |
30.4 |
|
|
$ |
50.0 |
|
|
$ |
1.2 |
|
$ |
51.2 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating margin |
|
3.2 |
% |
|
|
|
|
8.1 |
% |
|
|
|
|
9.1 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating Profit - Fiscal 2021 Q1 |
$ |
58.1 |
|
|
$ |
(6.2 |
) |
|
$ |
51.9 |
|
|
$ |
— |
|
$ |
51.9 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating margin |
|
11.4 |
% |
|
|
|
|
10.2 |
% |
|
|
|
|
10.2 |
% |
(1)
|
Q1 2022 adjustments reflect $30.4 million of environmental and other related costs net of recoveries. Q1 2021 adjustments reflect $4.0 million of air freight charges related to production and shipping delays caused by the COVID-19 pandemic and $(10.2) million of environmental and other related costs net of recoveries. |
|
(2) |
Q1 2022 adjustment reflects the Sweaty Betty® results included in the consolidated condensed statement of operations. |
RECONCILIATION OF REPORTED INVENTORY | |||||||||
TO ADJUSTED ORGANIC INVENTORY* |
|||||||||
(Unaudited) |
|||||||||
(In millions) |
|||||||||
|
GAAP Basis |
|
Sweaty Betty (1) |
|
Organic Basis |
||||
|
|
|
|
|
|
||||
Inventories, net - Fiscal 2022 Q1 |
$ |
483.3 |
|
$ |
(46.7 |
) |
|
$ |
436.6 |
|
|
|
|
|
|
||||
Inventories, net - Fiscal 2021 Q1 |
$ |
320.9 |
|
$ |
— |
|
|
$ |
320.9 |
. |
|||||||||
(1) |
Q1 2022 adjustment reflects the Sweaty Betty® inventories included in the consolidated condensed balance sheet. |
RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED | ||||||||||||||||
DILUTED EPS ON A CONSTANT CURRENCY BASIS* |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
GAAP Basis |
|
Adjustments (1) |
|
As Adjusted |
|
Foreign
|
|
As Adjusted
|
|||||||
|
|
|
|
|
|
|
|
|
|
|||||||
EPS - Fiscal 2022 Q1 |
$ |
0.12 |
|
$ |
0.29 |
|
|
$ |
0.41 |
|
$ |
(0.01 |
) |
|
$ |
0.40 |
|
|
|
|
|
|
|
|
|
|
|||||||
EPS - Fiscal 2021 Q1 |
$ |
0.45 |
|
$ |
(0.05 |
) |
|
$ |
0.40 |
|
|
|
|
|||
|
||||||||||||||||
(1)
|
Q1 2022 adjustments reflect environmental and other related costs net of recoveries. Q1 2021 adjustments reflect air freight charges related to production and shipping delays caused by the COVID-19 pandemic and environmental and other related costs net of recoveries. |
RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED | |||||||||||||||
DILUTED EPS AND ADJUSTED ORGANIC DILUTED EPS* |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
GAAP Basis |
|
Adjustments (1) |
|
As Adjusted |
|
Sweaty Betty (2) |
|
Adjusted
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||
EPS - Fiscal 2022 Q1 |
$ |
0.12 |
|
$ |
0.29 |
|
|
$ |
0.41 |
|
$ |
— |
|
$ |
0.41 |
|
|
|
|
|
|
|
|
|
|
||||||
EPS - Fiscal 2021 Q1 |
$ |
0.45 |
|
$ |
(0.05 |
) |
|
$ |
0.40 |
|
$ |
— |
|
$ |
0.40 |
(1)
|
Q1 2022 adjustments reflect environmental and other related costs net of recoveries. Q1 2021 air freight charges related to production and shipping delays caused by the COVID-19 pandemic and environmental and other related costs net of recoveries. |
|
(2) |
Q1 2022 adjustment reflects the Sweaty Betty® results included in the consolidated condensed statement of operations. |
2022 GUIDANCE RECONCILIATION TABLES | ||||||||
RECONCILIATION OF REPORTED OPERATING MARGIN GUIDANCE TO ADJUSTED OPERATING MARGIN GUIDANCE, REPORTED DILUTED EPS GUIDANCE TO ADJUSTED DILUTED EPS |
||||||||
GUIDANCE AND SUPPLEMENTAL INFORMATION* |
||||||||
(Unaudited) |
||||||||
(In millions, except earnings per share) |
||||||||
|
GAAP Basis |
|
Adjustments (1) |
|
As Adjusted |
|||
|
|
|
|
|
|
|||
Operating Margin - Fiscal 2022 Full Year |
10.2 |
% |
|
0.8 |
% |
|
11.0 |
% |
|
|
|
|
|
|
|||
Dilutive EPS - Fiscal 2022 Full Year |
$ 2.30 - $2.45 |
|
$0.20 |
|
|
$ 2.50 - $2.65 |
||
|
|
|
|
|
|
|||
Fiscal 2022 Full Year Supplemental information: |
|
|
|
|
|
|||
|
|
|
|
|
|
|||
Net Earnings |
$190 - $203 |
|
$16 |
|
|
$206 - $219 |
||
|
|
|
|
|
|
|||
Net Earnings used to calculate diluted earnings per share |
$187 - $200 |
|
$16 |
|
|
$203 - $216 |
||
|
|
|
|
|
|
|||
Shares used to calculate diluted earnings per share |
81.4 |
|
|
|
|
81.4 |
|
(1) |
2022 adjustments reflect estimated environmental and other related costs net of recoveries and estimated Sweaty Betty® integration costs. |
* В дополнение к консолидированной сокращенной финансовой отчетности, представленной в соответствии с Общепринятыми принципами бухгалтерского учета ("GAAP"), Компания описывает, какими были бы определенные финансовые показатели, если бы затраты, связанные с приобретением бренда Sweaty Betty®, экологические и другие связанные с этим расходы за вычетом возмещения и расходов на авиаперевозки, связанных с пандемия COVID-19 была исключена. Компания также описывает, какими были бы определенные финансовые показатели, если бы ранее описанные финансовые показатели также исключали результаты Sweaty Betty®. Компания считает, что эти показатели, не относящиеся к GAAP, предоставляют полезную информацию как руководству, так и инвесторам, повышая сопоставимость с предыдущим периодом за счет корректировки на определенные статьи, которые могут не отражать основные операционные показатели, и для лучшего выявления тенденций в бизнесе Компании. Скорректированные финансовые результаты используются руководством и позволяют инвесторам оценивать операционные показатели Компании на сопоставимой основе.
Представление в постоянной валюте, которое не является показателем GAAP, исключает влияние колебаний валютных курсов. Компания считает, что предоставление постоянной информации о валюте предоставляет ценную дополнительную информацию о результатах операций, соответствующую тому, как Компания оценивает результаты деятельности. Компания рассчитывает постоянную валюту путем конвертации финансовых результатов текущего периода в местной валюте с использованием обменных курсов предыдущего периода и сравнения этих скорректированных сумм с отчетными результатами Компании за текущий период.
Руководство и инвесторы не должны рассматривать такие финансовые показатели, не относящиеся к ОПБУ, в отрыве от финансовой информации, подготовленной в соответствии с ОПБУ, или в качестве замены для нее. Сверка всех показателей, не относящихся к GAAP, включенных в этот пресс-релиз, с наиболее непосредственно сопоставимыми показателями GAAP приведена в финансовых таблицах выше.
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