Wolverine Worldwide revenues of 394.9 million dollars declined 34.1 percent or 34.6 percent on a constant currency basis. Revenues from the ongoing business were down 24.5 percent or 25.1 percent constant currency to 390.8 million dollars.
Gross margin for the quarter improved 650 bps to 45.9 percent, while adjusted gross margin improved 250 bps to 46.5 percent. Diluted earnings per share decreased to 19 cents, adjusted diluted earnings per share were down 54.5 percent to 5 cents..
The company also announced the appointment of Taryn Miller as the new chief financial officer, effective May 9, 2024. Miller will report to Chris Hufnagel, the company’s president and chief executive officer and succeed Michael D. Stornant, who will be retiring after nearly 30 years with the company.
“We delivered better-than-expected revenue and earnings in the first quarter, and we are beginning to see proof points emerge as early validation of our strategy and execution – including record gross margin in the quarter, acceleration in our direct-to-consumer business, improving order trends across our wholesale operations, and a healthier balance sheet,” said Chris Hufnagel.
Wolverine Worldwide projects FY24 revenue decline
For the full year, the company expects revenue from ongoing business to be approximately 1.68 billion dollars to 1.73 billion dollars, representing a decline of approximately 15.7 percent to 13.2 percent and constant currency decline of approximately 15.5 percent and 13 percent.
The company expects gross margin to be approximately 44.5 percent, up 460 basis points compared to 2023, operating margin is expected to be approximately 5.7 percent and adjusted operating margin is expected to be approximately 7 percent, up 310 basis points.
Diluted earnings per share are expected to be between 43 cents and 63 cents and adjusted diluted earnings per share are expected to be between 65 cents and 85 cents.
Wolverine Worldwide appoints new CFO
New CFO Miller, the company said in a release most recently served as vice president of corporate and commercial finance at Corteva Agriscience, an international pure-play agriculture company, where she led a wide variety of financial functions, including investor relations, treasury, and commercial finance.
Prior to that, she served as the chief financial officer of global business units, enterprise FP&A, and investor relations at Kimberly-Clark Corporation. Earlier in her career she held various financial leadership roles at Kraft Heinz Company, including serving as CFO and vice president of finance at Kraft Heinz Canada Inc.
“The board and I are delighted to welcome Taryn to our Executive Team and confident that her deep financial experience and knowledge, coupled with her results-driven leadership style will be invaluable as we advance our ongoing strategic transformation,” said Chris Hufnagel.