Wolverine Worldwide updates full-year guidance
Wolverine World Wide, Inc. on Monday updated its outlook for fiscal 2022 revenue, earnings, inventory and net debt, just weeks after the footwear company revealed plans to divest its Keds and leather business.
For the twelve-month period ending December 31, 2022, the Rockford, Michigan-based company said it now forecasts full-year revenue of $2.685 billion (representing approximately 11% growth and 14% on a constant currency basis). For the fourth quarter, it expects revenue to be approximately $665 million (representing approximately 5% growth and 8% on a constant currency basis).
Both fiscal 2022 and fourth quarter adjusted diluted earnings are forecast to be at the low end of its previous guidance, pending the year-end financial close.
The company expects to count year-end inventory of approximately $805 million, down from $880 million at the end of Q3. The year-end inventory includes approximately $40 million for Keds and Wolverine Leathers, two businesses that are each currently in an active sale process.
Year-end net debt is expected to be at $1 billion, down from $1.3 billion at the end of Q3, it added.
“During the fourth quarter, we achieved our revenue, inventory management and cash flow goals,” said Brendan Hoffman, president and CEO. “The acceleration of our inventory reduction efforts is expected to pressure fourth-quarter earnings toward the low end of our guidance. We are executing well against a 100-day action plan that establishes near-term operational improvements needed to set the foundation for growth and profit improvement moving forward.
"The continued liquidation of end-of-life inventory is critical to this plan and we are encouraged by the progress made and options available to further clear these goods in early 2023," concluded Hoffman.
Last month, Wolverine announced plans to divest its leather and Keds brands from its brand portfolio, following news in November of a business reorganization and management reshuffle.
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