Wolverine Worldwide expects earnings at low end of guidance range
Updating its outlook, Wolverine World Wide, Inc. said that the company expects fiscal 2022 full-year revenue of 2.685 billion dollars, representing approximately 11 percent growth and 14 percent on a constant currency basis.
Fourth quarter revenue is expected to reach approximately 665 million dollars, representing approximately 5 percent growth and 8 percent on a constant currency basis.
The company added that fiscal 2022 and fourth quarter adjusted diluted earnings are expected at the low end of our previous guidance, pending the year-end financial close.
Commenting on the update, Brendan Hoffman, the company’s president and CEO said: “The acceleration of our inventory reduction efforts is expected to pressure fourth-quarter earnings toward the low end of our guidance.”
The company expects year-end inventory of approximately 805 million dollars, down from 880 million dollars at the end of Q3. The year-end inventory includes approximately 40 million dollars for Keds and Wolverine Leathers, two businesses that are each currently in an active sale process.
“Since our announcement on December 9, we have moved quickly on the sale of our Keds and Wolverine Leathers business,” added Mike Stornant, the company’s executive vice president and CFO.