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2026-02-12 09:18 Wolverine Worldwide Reports Strong Double - Digit Quarterly Revenue Growth With Robust Demand Continuing Into 2022 | Wolverine Wor ... WOLVERINE W worldwide Press Release Wolverine Worldwide Reports Strong Double - Digit Quarterly Revenue Growth With Robust Demand Continuing Into 2022 ROCKFORD , Mich .-- ( BUSINESS WIRE ) -- Nov . 10 , 2021-- Wolverine World Wide , Inc. ( NYSE : WWW ) today reported strong financial results for the third quarter ended October 2 , 202 and updated its 2021 fiscal - year revenue and earnings outlook to reflect recent supply chain challenges . " The Company delivered strong double - digit revenue growth and exceptional earnings leverage , despite the increased supply chain disruption caused by Vietnam factory closures anc global logistics delays " said Blake W. Krueger , Wolverine Worldwide's Chairman and Chief Executive Officer . " Merrell was hit hardest by Vietnam factory closures but still delivered mic single - digit growth . Saucony and Sperry both drove over 40 % revenue growth . The unplanned supply chain disruptions resulted in at least a $ 60 million negative revenue impact in Q3 Demand for our brands remains very strong as evidenced by continued strength in sell - through trends at retail and a robust order book that extends into Q3 2022. We remain bullish o our outlook for the future in light of these trends and the composition of our portfolio which over - indexes on performance categories like hiking , running , and work . We are also excited about the addition of Sweaty Betty to our portfolio - a fast - growing brand that enhances the digital and apparel capabilities of the Company . " THIRD - QUARTER 2021 PERFORMANCE On August 2 , 2021 , Wolverine Worldwide acquired women's activewear brand Sweaty Betty , a digitally - native , premium global apparel brand , which is expected to fuel growth and enhance the Company's fast - growing eCommerce business . The following third - quarter results include Sweaty Betty during the period from August 2 , 2021 until the end of the quarter . . • Reported revenue was $ 636.7 million , up 29.1 % versus the prior year . On a constant currency basis , revenue was up 28.2 % versus the prior year . eCommerce reported revenue was up 45 % versus the prior year and up 126 % versus 2019 . • Reported gross margin was 43.2 % , compared to 41.0 % in the prior year . Adjusted gross margin was 44.6 % , compared to 41.3 % in the prior year . • Reported operating margin was 6.7 % , compared to 8.6 % in the prior year . Adjusted operating margin was 12.0 % , compared to 10.6 % in the prior year . • Reported diluted earnings per share were $ 0.00 , compared to reported diluted earnings per share of $ 0.27 in the prior year . Current year reported earnings includes costs related to the acquisition of Sweaty Betty , debt refinancing costs , certain litigation - related costs and air freight charges related to production and shipping delays caused by the COVID - 19 pandemic . Adjusted diluted earnings per share were $ 0.62 , and , on a constant currency basis , were $ 0.61 , compared to $ 0.35 in the prior year . • Inventory at the end of the quarter was $ 412.0 million , up 26.5 % versus the prior year . Sweaty Betty contributed 16.1 % to the increase versus the prior year . • Total debt at the end of the quarter was $ 1,024.4 million , or $ 147.8 million more than in the prior year . Total liquidity considering the October credit facility transaction was approximately $ 800 million . THIRD - QUARTER 2021 UNDERLYING PERFORMANCE ( excludes Sweaty Betty ) • Underlying revenue was $ 597.6 million , up 21.2 % versus the prior year and 4.0 % versus 2019 . eCommerce underlying revenue was up 13.3 % versus the prior year and up 77.3 % versus 2019 . • • Adjusted underlying gross margin was 43.2 % , compared to 41.3 % in the prior year . • Adjusted underlying operating margin was 12.5 % , compared to 10.6 % in the prior year . • Adjusted underlying diluted earnings per share were $ 0.60 , compared to $ 0.35 in the prior year . " We are pleased with the third quarter's strong double - digit revenue growth and even stronger adjusted earnings growth versus 2020 , " said Mike Stornant , Senior Vice President and Chief Financial Officer . " Operating margin was stronger than expected and benefited from healthy gross margin performance across the portfolio . In addition , our nimble operating mo and diverse portfolio allowed us to navigate the short - term disruption caused by Vietnam factory closures . We are encouraged to see factories re - open but the recent closures will imp our ability to fully service the incredibly strong demand we are seeing in Q4 . As a result , we adjusted our full - year outlook for fiscal 2021. " FULL - YEAR 2021 OUTLOOK For the full 2021 fiscal year , the Company now expects revenue of approximately $ 2.4 billion resulting in nearly 35 % growth versus the prior year . This revenue outlook represents mid single - digit growth over 2019 ( including Sweaty Betty ) , and low - single - digit growth excluding Sweaty Betty . Reported diluted earnings per share are now expected to be in the range of $ 1.16 to $ 1.21 , and adjusted diluted earnings per share are now expected to be in the range of $ 2.05 to $ 2.10 . This outlook assumes no meaningful deterioration of current market conditions related to the COVID - 19 pandemic during the remainder of 2021 . 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 , costs related to the COVID - 19 pandemic including air freight costs , credit loss expenses , severance expenses and other related costs , reorganization expenses and debt extinguishment costs . Measures referred to in this release as " underlying " financial results are non - GAAP measures that exclude the results of Sweaty Betty . The Company also presents constant currency informatior 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 thes 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 adjustin 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 t and allow investors to , evaluate the operating performance of the Company on a comparable basis . The underlying financial results are used by management to , and allow investors t 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 . https://wolverineworldwide.gcs-web.com/news-releases/news-release-details/wolverine-worldwide-reports-strong-double-digit-quarterly 1/7