Wolverine World Wide, Inc. updated its outlook for fiscal 2022 revenue, earnings, inventory, and net debt, reporting that the company expects the following preliminary and unaudited financial results as of December 31, 2022:

  • Fiscal 2022 full-year revenue of $2.685 billion, representing approximately 11 percent growth and 14 percent on a constant-currency basis;
  • Fourth quarter revenue of approximately $665 million, representing approximately 5 percent growth and 8 percent on a constant currency basis;
  • Fiscal 2022 and fourth quarter adjusted diluted earnings at the low end of our previous guidance, pending the year-end financial close;
  • Year-end inventory of approximately $805 million, down from $880 million at the end of Q3. The year-end inventory includes approximately $40 million for Keds and Wolverine Leathers, two businesses that are each currently in an active sale process;
  • Year-end Net Debt of $1.0 billion, down from $1.3 billion at the end of Q3; and
  • Fourth quarter operating free cash flow in the range of $280 to $300 million.

“Since our announcement on December 9, we have moved quickly on the sale of our Keds and Wolverine Leather’s business,” said Mike Stornant, EVP and CFO. “Both are now in very active processes with potential strategic buyers, and we are encouraged by the progress.”

“During the fourth quarter, we achieved our revenue, inventory management and cash flow goals,” said Brendan Hoffman, [president and CEO. “The acceleration of our inventory reduction efforts is expected to pressure fourth-quarter earnings toward the low end of our guidance. We are executing well against a 100-day action plan that establishes near-term operational improvements needed to set the foundation for growth and profit improvement moving forward. The continued liquidation of end-of-life inventory is critical to this plan and we are encouraged by the progress made and options available to further clear these goods in early 2023.”

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