The active group segment saw a significant decline in revenue, falling 20.2 per cent to $305.9 million from $383.3 million the previous year. The work group segment also experienced a decrease, with revenue dropping 10.9 per cent to $105 million from $117.8 million. The other segment reported a dramatic revenue decline of 83.8 per cent, down to $14.3 million from $88.0 million in Q2 FY23, the company said in a press release.

Among key brands, Merrell's revenue decreased by 19.2 per cent to $142.7 million, and Saucony's revenue fell by 28.0 per cent to $102.0 million. Wolverine brand revenue saw a smaller decline of 3.1 per cent, reaching $40.1 million. Sweaty Betty's revenue remained flat at $44 million.

International revenue was $216 million, down 19.3 per cent from $267.7 million. On an ongoing basis, international revenue was $216.0 million, a 14.6 per cent decline. Direct-to-consumer reported revenue decreased by 14.4 per cent to $113.4 million, while ongoing direct-to-consumer revenue was relatively stable at $113.2 million, down just 0.2 per cent.

Wolverine Worldwide's gross margin improved by 440 basis points to 43.1 per cent from 38.7 per cent in Q2 FY23. Operating expenses decreased by 15.2 per cent to $154.1 million from $181.7 million. However, the operating margin declined by 100 basis points to 6.8 per cent from 7.8 per cent. Diluted earnings per share dropped by 43.3 per cent to $0.17, compared to $0.30 in the same quarter last year.

“We delivered better-than-expected revenue and earnings in the second quarter, while continuing to execute our ambitious turnaround plan,” said Chris Hufnagel, president and chief executive officer of Wolverine Worldwide. “We've significantly lowered our debt and inventory levels, while meaningfully expanding our gross margin, and we’re beginning to see proof points of an inflection to growth.”

Fibre2Fashion News Desk (DP)