Wolverine World Wide, Inc. reported revenue for the second quarter ended July 1 declined 17.4 percent (-17.3 percent constant-currency) to $589.1 million, compared to $713.6 million in the year-ago quarter. Revenue from the ongoing business was $578.2 million and declined 13.8 percent on a constant-currency basis.
The company’s international revenue from the ongoing business was down 6.2 percent (-17.3 percent constant-currency) to $260.9 million.
Direct-to-consumer revenue was down 20.3 percent year-over-year to $132.4 million. Revenue was down 16.4 percent for the ongoing business compared to the prior-year period.
Gross margin was 38.7 percent of sales for the quarter, compared to 43.0 percent in the prior-year quarter, reflecting “the sale of higher-cost inventory due to transitory supply chain costs from 2022, the acceleration of end-of-life inventory liquidation, and increased promotions.”
SG&A expenses were $181.7 million, or 30.8 percent of adjusted revenue. Adjusted SG&A expenses of $192.8 million or 33.3 percent of adjusted revenue, were 80 basis points higher than the prior year.
Inventory at the end of the quarter was $647.9 million and was down approximately $97.3 million sequentially from the fourth quarter of fiscal 2022.
For full details about Wolverine Worldwide’s big Thursday news day, including executive analysis of Q2 results, a new vision from a new CEO, closing Boston and a strategic focus to build brands, go here:
EXEC: New Wolverine Worldwide CEO to Focus on Building Brands After Q2 Results Disappoint
Photo courtesy Wolverine
