US' Wolverine Worldwide reports double-digit revenue growth in FY22

The selling, general, and administrative expenses were $1,278.8 million, including $428.7 million for a non-cash impairment of Sperry and Sweaty Betty intangible assets, the company said in a press release.

For the fourth quarter (Q4) of FY22, the company's revenue was $665 million, indicating a 4.6 per cent growth compared to the previous year, and an 8.4 per cent growth on a constant currency basis. The gross margin also declined to 33.7 per cent compared to 41.3 per cent in the prior year due to end-of-life inventory liquidation, increased promotions, and a higher mix of international distributor sales with lower gross margins. The selling, general, and administrative expenses for Q4 were $678.9 million.

Wolverine Worldwide's inventory at the end of Q4 was $745.2 million, which is $90 million less than the previous quarter, excluding $43.1 million from held-for-sale businesses.

Looking ahead, Wolverine Worldwide expects its revenue from ongoing business to be in the range of $2.53 billion to $2.58 billion in FY23, representing a growth of approximately 0-2 per cent and constant currency growth of approximately 1-3 per cent. The company expects its gross margin to be approximately 41.2 per cent, while the adjusted gross margin is expected to be approximately 42 per cent. The operating margin is expected to be approximately 8.7 per cent, while the adjusted operating margin is expected to be approximately 8.5 per cent. The company expects its diluted earnings per share to be between $1.50 and $1.70, and adjusted diluted earnings per share to be between $1.40 and $1.60.

Fibre2Fashion News Desk (DP)