Wolverine Worldwide's Q3 revenue and profit miss forecast
Wolverine World Wide, Inc. revenue for the third quarter of 691.4 million dollars represents growth of 8.6 percent versus the prior year and growth of 12.2 percent on a constant currency basis.
The company’s international business was up 33 percent to 303 million dollars and direct-to-consumer revenue was up 4.5 percent to 160 million dollars.
Gross margin was 40.2 percent versus 43.2 percent in the prior year.
"While we were pleased to deliver third quarter revenue growth of 9 percent and 12 percent on a constant currency basis, both revenue and profit came in below our expectations reflecting ongoing supply chain disruption, heightened promotional activity at retail, and deteriorating macro conditions," said Brendan Hoffman, Wolverine Worldwide's president and CEO.
"Despite these external headwinds, we saw notable strength in our international business, and within our portfolio Merrell continued its strong momentum delivering 39 percent constant currency growth,” Hoffman added.
The company said, fourth quarter revenue is expected to be in the range of 650 million dollars to 675 million dollars, representing growth of approximately 2.3 percent to 6.2 percent.
Adjusted Gross margin is expected to be approximately 38 percent compared to 42.4 percent in the prior year. Diluted earnings per share are expected to be between (negative 19 cents to negative 9 cents and adjusted diluted earnings per share are expected to be between negative 15 cents to negative 5 cents.
Full year revenue is expected to be in the range of 2.670 billion dollars to 2.695 billion dollars, representing growth of approximately 10.6 percent to 11.6 percent. Gross margin is expected to be approximately 41 percent and diluted earnings per share are expected to be between 1.90 dollars to 2 dollars and adjusted diluted earnings per share are expected to be between 1.41 dollars to 1.51 dollars, representing a decline of 24.1 percent to 18.7 percent.