"Revenue and operating margin exceeded expectations, despite gross margin pressure related to higher supply chain costs and channel mix shift. We are encouraged to see continued strong demand across brands and have upcoming product launches and powerful marketing initiatives planned to drive further excitement among consumers. Looking ahead, we remain committed to advancing our primary growth strategies, with a more focused approach on execution as we capitalize on a favourable industry backdrop in outdoor, performance and work categories", commented Brendan Hoffman, Wolverine Worldwide’s President and Chief Executive Officer.

First Quarter Results

In the first quarter of 2022, which ended on the 2^nd of April, Wolverine Worldwide reported a revenue increase of 20.4%, reaching 614.8 million US dollars, as compared to the same period of last year.

In this period, Merrell’s revenue totalled 147.9 million US dollars (2021:150.2 million US dollars), Saucony posted revenue of 106.4 million US dollars (2021:102.6 million US dollars), Sperry’s revenue added up to 67.4 million US dollars (2021:56.8 million US dollars), Wolverine’s sales amounted to 58.8 million US dollars (2021:52.5 million US dollars), and Sweaty Betty, which was acquired in August 2021, contributed with 53.6 million US dollars to the total revenue.

Gross margin declined 100 percentage points to  42.5% in the first quarter of the current fiscal year, on a comparable basis to the same quarter of 2021. Wolverine Worldwide highlighted, however, that this results was in line with its plan and includes "incremental supply chain costs and a revenue mix shift toward the international distributor business".

In the first quarter of 2022, Wolverine Worldwide announced diluted earnings per share were 0.12 US dollars, as compared to diluted earnings per share of 0.45 US dollars in similar period of the prior year. Adjusted diluted earnings per share were 0.41 US dollars, as compared to 0.40 US dollars in the first quarter of 2021.

Fiscal 2022 Outlook

"We are encouraged by the strong start to the year with revenue and earnings per share exceeding our expectations. Looking forward, the continued strong demand for our brands combined with improving inventory flow supports our reiteration of full-year revenue and EPS guidance", stated Mike Stornant, Executive Vice President and Chief Financial Officer.

For fiscal 2022, Wolverine Worldwide is expecting revenue in the range of 2.76 billion US dollars to 2.85 billion US dollars, reflecting growth of approximately 15.0% to 18.0%, as compared to the prior fiscal year.  The company is also anticipating diluted earnings per share  to be between 2.30 US dollars to 2.45 US dollars, and adjusted diluted earnings per share to be between 2.50 US dollars to 2.65 US dollars.