WOLVERINE WORLD WIDE, INC. | ||
(Exact name of registrant as specified in its charter) |
Delaware | 001-06024 | 38-1185150 | ||||||||||||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
9341 Courtland Drive N.E. | , | Rockford | , | Michigan | 49351 | |||||||||||||||
(Address of principal executive offices) | (Zip Code) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class | Trading symbol | Name of each exchange on which registered | ||||||
Common Stock, $1 Par Value | WWW | New York Stock Exchange |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
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(d) | Exhibits: | ||||||||||
99.1 | |||||||||||
99.2 | |||||||||||
104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL (included as Exhibit 101). |
Dated: February 21, 2024 |
WOLVERINE WORLD WIDE, INC.
(Registrant)
|
||||
/s/ Michael D. Stornant | |||||
Michael D. Stornant | |||||
Executive Vice President, Chief Financial Officer and Treasurer |
9341 Courtland Drive NE, Rockford, MI 49351
Phone (616) 866-5500
|
(in millions) | December 30, 2023 |
December 31, 2022 |
Y/Y Change | Constant Currency Change | ||||||||||||||||
Reported Segment Revenue Results: | ||||||||||||||||||||
Active Group | $341.3 | $397.6 | (14.2)% | (15.2)% | ||||||||||||||||
Work Group | $125.3 | $154.5 | (18.9)% | (19.7)% | ||||||||||||||||
Other | $60.1 | $112.9 | (46.8)% | (44.8)% | ||||||||||||||||
Total Revenue | $526.7 | $665.0 | (20.8)% | (21.3)% | ||||||||||||||||
Ongoing Total Revenue | $521.2 | $634.6 | (17.9)% | (18.4)% | ||||||||||||||||
Supplemental Brand Revenue Information | ||||||||||||||||||||
Merrell | $161.8 | $193.9 | (16.6)% | (17.0)% | ||||||||||||||||
Saucony | $105.1 | $121.3 | (13.4)% | (13.7)% | ||||||||||||||||
Wolverine | $51.8 | $71.8 | (27.9)% | (27.9)% | ||||||||||||||||
Sweaty Betty | $67.3 | $72.8 | (7.6)% | (11.8)% | ||||||||||||||||
Reported: | ||||||||||||||||||||
Gross Margin | 36.6% |
33.7% |
290 bps | |||||||||||||||||
Operating Margin | (35.5)% |
(68.4)% |
3,290 bps | |||||||||||||||||
Diluted Earnings Per Share | ($1.15) |
($4.59) |
74.9% | |||||||||||||||||
Non-GAAP and Ongoing business: | ||||||||||||||||||||
Adjusted Gross Margin | 36.9% | 34.2% | 270 bps | |||||||||||||||||
Adjusted Operating Margin | (3.5)% | (1.8)% | (170) bps | |||||||||||||||||
Adjusted Diluted Earnings Per Share | $(0.30) | $(0.13) | 130.8% | |||||||||||||||||
Constant Currency Earnings Per Share | $(0.29) | $(0.13) | 123.1% |
(in millions) | December 30, 2023 |
December 31, 2022 |
Y/Y Change | Constant Currency Change | ||||||||||||||||
Segment Revenue Results: | ||||||||||||||||||||
Active Group | $1,439.1 | $1,570.2 | (8.3)% | (8.1)% | ||||||||||||||||
Work Group | $480.6 | $590.5 | (18.6)% | (19.0)% | ||||||||||||||||
Other | $323.2 | $524.1 | (38.3)% | (37.9)% | ||||||||||||||||
Total Revenue | $2,242.9 | $2,684.8 | (16.5)% | (16.3)% | ||||||||||||||||
Ongoing Total Revenue | $2,199.3 | $2,532.1 | (13.1)% | (13.0)% | ||||||||||||||||
Supplemental Brand Information | ||||||||||||||||||||
Merrell | $675.8 | $764.2 | (11.6)% | (11.3)% | ||||||||||||||||
Saucony | $495.8 | $505.3 | (1.9)% | (1.2)% | ||||||||||||||||
Wolverine | $201.2 | $247.5 | (18.7)% | (18.7)% | ||||||||||||||||
Sweaty Betty | $203.8 | $211.5 | (3.6)% | (4.5)% | ||||||||||||||||
Reported: | ||||||||||||||||||||
Gross Margin | 38.9% | 39.9% | (100) bps | |||||||||||||||||
Operating Margin | (3.0)% | (7.8)% | 480 bps | |||||||||||||||||
Diluted Earnings Per Share | $(0.51) | $(2.37) | 78.5% | |||||||||||||||||
Non-GAAP: | ||||||||||||||||||||
Adjusted Gross Margin | 39.3% | 40.7% | (140) bps | |||||||||||||||||
Adjusted Operating Margin | 3.1% | 6.8% | (370) bps | |||||||||||||||||
Adjusted Diluted Earnings Per Share | $0.05 | $1.37 | (96.4)% | |||||||||||||||||
Constant Currency Earnings Per Share | $0.15 | $1.37 | (89.1)% |
Quarter Ended | Fiscal Year Ended | ||||||||||||||||||||||
December 30, 2023 |
December 31, 2022 |
December 30, 2023 |
December 31, 2022 |
||||||||||||||||||||
Revenue |
$ | 526.7 | $ | 665.0 | $ | 2,242.9 | $ | 2,684.8 | |||||||||||||||
Cost of goods sold |
333.7 | 440.8 | 1,370.4 | 1,614.4 | |||||||||||||||||||
Gross profit |
193.0 | 224.2 | 872.5 | 1,070.4 | |||||||||||||||||||
Gross margin |
36.6 | % | 33.7 | % | 38.9 | % | 39.9 | % | |||||||||||||||
Selling, general and administrative expenses |
245.4 | 249.1 | 856.2 | 906.4 | |||||||||||||||||||
Gain on sale of business, trademarks and long-lived assets | (12.6) | — | (90.4) | (90.0) | |||||||||||||||||||
Impairment of long-lived assets | 129.5 | 428.7 | 185.3 | 428.7 | |||||||||||||||||||
Environmental and other related costs (income), net of recoveries | 17.6 | 1.1 | (10.4) | 33.7 | |||||||||||||||||||
Operating expenses |
379.9 | 678.9 | 940.7 | 1,278.8 | |||||||||||||||||||
Operating expenses as a % of revenue |
72.1 | % | 102.1 | % | 41.9 | % | 47.6 | % | |||||||||||||||
Operating loss | (186.9) | (454.7) | (68.2) | (208.4) | |||||||||||||||||||
Operating margin |
(35.5) | % | (68.4) | % | (3.0) | % | (7.8) | % | |||||||||||||||
Interest expense, net |
16.1 | 16.0 | 63.5 | 47.3 | |||||||||||||||||||
Other expense (income), net | (0.7) | (5.0) | 2.5 | (2.8) | |||||||||||||||||||
Total other expenses |
15.4 | 11.0 | 66.0 | 44.5 | |||||||||||||||||||
Loss before income taxes | (202.3) | (465.7) | (134.2) | (252.9) | |||||||||||||||||||
Income tax benefit | (111.7) | (104.9) | (95.0) | (63.8) | |||||||||||||||||||
Effective tax rate |
55.2 | % | 22.5 | % | 70.7 | % | 25.2 | % | |||||||||||||||
Net loss | (90.6) | (360.8) | (39.2) | (189.1) | |||||||||||||||||||
Less: net earnings (loss) attributable to noncontrolling interests | 0.6 | 0.8 | 0.4 | (0.8) | |||||||||||||||||||
Net loss attributable to Wolverine World Wide, Inc. | $ | (91.2) | $ | (361.6) | $ | (39.6) | $ | (188.3) | |||||||||||||||
Diluted loss per share | $ | (1.15) | $ | (4.59) | $ | (0.51) | $ | (2.37) | |||||||||||||||
Supplemental information: |
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Net loss used to calculate diluted loss per share | $ | (91.4) | $ | (361.8) | $ | (40.3) | $ | (188.9) | |||||||||||||||
Shares used to calculate diluted loss per share | 79.5 | 78.8 | 79.4 | 79.7 | |||||||||||||||||||
December 30, 2023 |
December 31, 2022 |
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ASSETS |
|||||||||||
Cash and cash equivalents |
$ | 179.0 | $ | 131.5 | |||||||
Accounts receivables, net |
230.8 | 241.7 | |||||||||
Inventories, net |
373.6 | 745.2 | |||||||||
Current assets held for sale | 160.6 | 67.9 | |||||||||
Other current assets |
81.1 | 79.0 | |||||||||
Total current assets |
1,025.1 | 1,265.3 | |||||||||
Property, plant and equipment, net |
96.3 | 136.2 | |||||||||
Lease right-of-use assets |
118.2 | 174.7 | |||||||||
Goodwill and other indefinite-lived intangibles |
601.2 | 759.0 | |||||||||
Other noncurrent assets |
222.0 | 157.5 | |||||||||
Total assets |
$ | 2,062.8 | $ | 2,492.7 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||||||
Accounts payable and other accrued liabilities |
$ | 519.7 | $ | 636.2 | |||||||
Lease liabilities |
34.7 | 39.1 | |||||||||
Current maturities of long-term debt |
10.0 | 10.0 | |||||||||
Borrowings under revolving credit agreements | 305.0 | 425.0 | |||||||||
Total current liabilities |
869.4 | 1,110.3 | |||||||||
Long-term debt |
605.8 | 723.0 | |||||||||
Lease liabilities, noncurrent |
132.4 | 153.6 | |||||||||
Other noncurrent liabilities |
155.2 | 166.8 | |||||||||
Stockholders' equity |
300.0 | 339.0 | |||||||||
Total liabilities and stockholders' equity |
$ | 2,062.8 | $ | 2,492.7 |
Fiscal Year Ended | |||||||||||
December 30, 2023 |
December 31, 2022 |
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OPERATING ACTIVITIES: | |||||||||||
Net loss | $ | (39.2) | $ | (189.1) | |||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | 35.1 | 34.6 | |||||||||
Deferred income taxes | (95.8) | (105.7) | |||||||||
Stock-based compensation expense | 15.2 | 33.4 | |||||||||
Pension and SERP expense | 0.7 | 9.3 | |||||||||
Impairment of long-lived assets | 185.3 | 428.7 | |||||||||
Environmental and other related costs | (55.1) | (23.0) | |||||||||
Gain on sale of business, trademarks and long-lived assets | (90.4) | (90.0) | |||||||||
Other | (2.0) | (2.7) | |||||||||
Changes in operating assets and liabilities | 168.0 | (274.4) | |||||||||
Net cash provided by (used in) operating activities | 121.8 | (178.9) | |||||||||
INVESTING ACTIVITIES: | |||||||||||
Additions to property, plant and equipment | (14.6) | (36.5) | |||||||||
Proceeds from sale of business, trademarks and long-lived assets | 188.9 | 90.0 | |||||||||
Investment in joint ventures | — | (2.8) | |||||||||
Other | (2.7) | 3.9 | |||||||||
Net cash provided by investing activities | 171.6 | 54.6 | |||||||||
FINANCING ACTIVITIES: | |||||||||||
Payments under revolving credit agreements | (743.0) | (740.0) | |||||||||
Borrowings under revolving credit agreements | 623.0 | 940.0 | |||||||||
Proceeds from company-owned insurance policies | — | 30.5 | |||||||||
Payments on long-term debt | (118.3) | (10.0) | |||||||||
Payments of debt issuance costs | (0.9) | — | |||||||||
Cash dividends paid | (32.6) | (32.8) | |||||||||
Purchase of common stock for treasury | — | (81.3) | |||||||||
Employee taxes paid under stock-based compensation plans |
(5.8) | (7.7) | |||||||||
Proceeds from the exercise of stock options | 0.1 | 1.4 | |||||||||
Contributions from noncontrolling interests | 31.2 | 7.0 | |||||||||
Net cash provided by (used in) financing activities | (246.3) | 107.1 | |||||||||
Effect of foreign exchange rate changes | 2.0 | (9.0) | |||||||||
Increase (decrease) in cash and cash equivalents | 49.1 | (26.2) | |||||||||
Cash and cash equivalents at beginning of the year | 135.5 | 161.7 | |||||||||
Cash and cash equivalents at end of the year | $ | 184.6 | $ | 135.5 |
GAAP Basis 2023-Q4 |
Foreign Exchange Impact | Constant Currency Basis 2023-Q4 |
GAAP Basis 2022-Q4 |
Reported Change | Constant Currency Change | ||||||||||||||||||||||||||||||
REVENUE | |||||||||||||||||||||||||||||||||||
Active Group | $ | 341.3 | $ | (4.3) | $ | 337.0 | $ | 397.6 | (14.2) | % | (15.2) | % | |||||||||||||||||||||||
Work Group | 125.3 | (1.2) | 124.1 | 154.5 | (18.9) | % | (19.7) | % | |||||||||||||||||||||||||||
Other | 60.1 | 2.2 | 62.3 | 112.9 | (46.8) | % | (44.8) | % | |||||||||||||||||||||||||||
Total | $ | 526.7 | $ | (3.3) | $ | 523.4 | $ | 665.0 | (20.8) | % | (21.3) | % |
GAAP Basis | Divestiture (1) |
As Adjusted | |||||||||||||||
Revenue - Fiscal 2023 Q4 |
$ | 526.7 | $ | 5.5 | $ | 521.2 | |||||||||||
Revenue - Fiscal 2022 Q4 |
$ | 665.0 | $ | 30.4 | $ | 634.6 | |||||||||||
(1)Q4 2023 adjustments reflect the Wolverine Leathers business results included in the consolidated condensed statement of operations. Q4 2022 adjustments reflect results for the Keds business, Wolverine Leathers business and Hush Puppies prior to the license model change included in the consolidated condensed statement of operations. |
GAAP Basis | Adjustments (1) |
Divestiture (2) |
As Adjusted | ||||||||||||||||||||
Gross Profit - Fiscal 2023 Q4 |
$ | 193.0 | $ | — | $ | (0.6) | $ | 192.4 | |||||||||||||||
Gross margin | 36.6 | % | 36.9 | % | |||||||||||||||||||
Gross Profit - Fiscal 2022 Q4 |
$ | 224.2 | $ | 1.0 | $ | (8.3) | $ | 216.9 | |||||||||||||||
Gross margin | 33.7 | % | 34.2 | % | |||||||||||||||||||
(1)Q4 2022 adjustment reflects $1.0 million of costs associated with Sweaty Betty® integration. |
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(2)Q4 2023 adjustments reflect the Wolverine Leathers business results included in the consolidated condensed statement of operations. Q4 2022 adjustments reflect results for the Keds business, Wolverine Leathers business and Hush Puppies prior to the license model change included in the consolidated condensed statement of operations. |
GAAP Basis | Adjustment (1) |
Divestiture (2) |
As Adjusted | ||||||||||||||||||||
Selling, general and administrative expenses - Fiscal 2023 Q4 |
$ | 379.9 | $ | (168.8) | $ | (0.6) | $ | 210.5 | |||||||||||||||
Selling, general and administrative expenses - Fiscal 2022 Q4 |
$ | 678.9 | $ | (440.6) | $ | (10.2) | $ | 228.1 | |||||||||||||||
(1)Q4 2023 adjustments reflect $129.4 million for non-cash impairments of long-lived assets, $31.3 million of reorganization costs, $17.6 million of environmental and other related costs net of recoveries, $3.1 million of costs associated with divestitures, partially offset by $12.6 million gain on the sale of businesses, trademarks and long-lived assets. Q4 2022 adjustments reflect $428.7 million for a non-cash impairment of the Sperry® trade name and the Sweaty Betty® trade name and goodwill, $9.1 million for reorganization costs, $1.1 million of environmental and other related costs net of recoveries, $0.9 million of costs associated with Sweaty Betty® integration and $0.8 of receivables securitization transaction costs. |
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(2)Q4 2023 adjustments reflect the Wolverine Leathers business results included in the consolidated condensed statement of operations. Q4 2022 adjustments reflect results for the Keds business, Wolverine Leathers business and Hush Puppies prior to the license model change included in the consolidated condensed statement of operations. |
GAAP Basis | Adjustments (1) |
Divestiture (2) |
As Adjusted | ||||||||||||||||||||
Operating Profit - Fiscal 2023 Q4 |
$ | (186.9) | $ | 168.8 | $ | — | $ | (18.1) | |||||||||||||||
Operating margin | (35.5) | % | (3.5) | % | |||||||||||||||||||
Operating Profit - Fiscal 2022 Q4 |
$ | (454.7) | $ | 441.6 | $ | 1.9 | $ | (11.2) | |||||||||||||||
Operating margin | (68.4) | % | (1.8) | % | |||||||||||||||||||
(1)Q4 2023 adjustments reflect $129.4 million for non-cash impairments of long-lived assets, $31.3 million of reorganization costs, $17.6 million of environmental and other related costs net of recoveries, $3.1 million of costs associated with divestitures, partially offset by $12.6 million gain on the sale of businesses, trademarks and long-lived assets. Q4 2022 adjustments reflect $428.7 million for a non-cash impairment of the Sperry® trade name and the Sweaty Betty® trade name and goodwill, $9.1 million for reorganization costs, $1.1 million of environmental and other related costs net of recoveries, $1.9 million of costs associated with Sweaty Betty® integration and $0.8 of receivables securitization transaction costs. |
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(2)Q4 2023 adjustments reflect the Wolverine Leathers business results included in the consolidated condensed statement of operations. Q4 2022 adjustments reflect results for the Keds business, Wolverine Leathers business and Hush Puppies prior to the license model change included in the consolidated condensed statement of operations. |
GAAP Basis | Adjustments (1) |
Divestiture (2) |
As Adjusted | Foreign Exchange Impact | As Adjusted EPS On a Constant Currency Basis |
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EPS - Fiscal 2023 Q4 |
$ | (1.15) | $ | 0.85 | $ | — | $ | (0.30) | $ | 0.01 | $ | (0.29) | |||||||||||||||||||||||
EPS - Fiscal 2022 Q4 |
$ | (4.59) | $ | 4.44 | $ | 0.02 | $ | (0.13) | |||||||||||||||||||||||||||
(1)Q4 2023 adjustments reflect non-cash impairments of long-lived assets, reorganization costs, environmental and other related costs net of recoveries, costs associated with divestitures, partially offset by gain on the sale of businesses, trademarks and long-lived assets and SERP curtailment gain. Q4 2022 adjustment reflects non-cash impairment of the Sperry® trade name and the Sweaty Betty® trade name and goodwill, reorganization costs, environmental and other related costs net of recoveries, costs associated with Sweaty Betty® integration and receivables securitization transaction costs |
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(2)Q4 2023 adjustments reflect the Wolverine Leathers business results included in the consolidated condensed statement of operations. Q4 2022 adjustments reflect results for the Keds business, Wolverine Leathers business and Hush Puppies prior to the license model change included in the consolidated condensed statement of operations. |
GAAP Basis | Divestiture (1) |
As Adjusted | |||||||||||||||
Inventory - 2023 Q4 |
$ | 373.6 | $ | — | $ | 373.6 | |||||||||||
Inventory - 2023 Q3 |
$ | 563.8 | $ | 100.6 | $ | 463.2 | |||||||||||
Inventory - 2023 Q2 |
$ | 647.9 | $ | 113.3 | $ | 534.6 | |||||||||||
Inventory - 2023 Q1 |
$ | 725.9 | $ | 120.5 | $ | 605.4 | |||||||||||
Inventory - 2022 Q4 |
$ | 745.2 | $ | 132.0 | $ | 613.2 | |||||||||||
(1)Adjustments reflect the Sperry business and consolidated China joint ventures inventory included in the consolidated condensed balance sheet. |
GAAP Basis 2023 | Foreign Exchange Impact | Constant Currency Basis 2023 | GAAP Basis 2022 | Reported Change | Constant Currency Change | ||||||||||||||||||||||||||||||
REVENUE | |||||||||||||||||||||||||||||||||||
Active Group | $ | 1,439.1 | 3.5 | $ | 1,442.6 | $ | 1,570.2 | (8.3) | % | (8.1) | % | ||||||||||||||||||||||||
Work Group | 480.6 | (2.4) | 478.2 | 590.5 | (18.6) | % | (19.0) | % | |||||||||||||||||||||||||||
Other | 323.2 | 2.3 | 325.5 | 524.1 | (38.3) | % | (37.9) | % | |||||||||||||||||||||||||||
Total | $ | 2,242.9 | $ | 3.4 | $ | 2,246.3 | $ | 2,684.8 | (16.5) | % | (16.3) | % |
GAAP Basis | Divestiture (1) |
As Adjusted | |||||||||||||||
Revenue - Fiscal 2023 |
$ | 2,242.9 | $ | 43.6 | $ | 2,199.3 | |||||||||||
Revenue - Fiscal 2022 |
$ | 2,684.8 | $ | 152.7 | $ | 2,532.1 | |||||||||||
(1)2023 adjustments reflect the Keds business and Wolverine Leathers business results included in the consolidated condensed statement of operations. 2022 adjustments reflect results for the Keds business, Wolverine Leathers business and Hush Puppies prior to the license model change included in the consolidated condensed statement of operations. |
GAAP Basis | Adjustments (1) |
Divestiture (2) |
As Adjusted | ||||||||||||||||||||
Gross Profit - Fiscal 2023 | $ | 872.5 | $ | 0.4 | $ | (7.7) | $ | 865.2 | |||||||||||||||
Gross margin | 38.9 | % | 39.3 | % | |||||||||||||||||||
Gross Profit - Fiscal 2022 | $ | 1,070.4 | $ | 1.7 | $ | (42.1) | $ | 1,030.0 | |||||||||||||||
Gross margin | 39.9 | % | 40.7 | % | |||||||||||||||||||
(1)2023 adjustment reflects $0.4 million of costs associated with divestitures. 2022 adjustment reflects $1.7 million of costs associated with Sweaty Betty® integration. |
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(2)2023 adjustments reflect the Keds business and Wolverine Leathers business results included in the consolidated condensed statement of operations. 2022 adjustments reflect results for the Keds business, Wolverine Leathers business and Hush Puppies prior to the license model change included in the consolidated condensed statement of operations. |
GAAP Basis | Adjustment (1) |
Divestiture (2) |
As Adjusted | ||||||||||||||||||||
Selling, general and administrative expenses - Fiscal 2023 | $ | 940.7 | $ | (136.7) | $ | (6.3) | $ | 797.7 | |||||||||||||||
Selling, general and administrative expenses - Fiscal 2022 | $ | 1,278.8 | $ | (384.3) | $ | (37.9) | $ | 856.6 | |||||||||||||||
(1)2023 adjustments reflect $185.3 million for non-cash impairments of long-lived assets, $47.1 million of reorganization costs, $5.1 million of costs associated with divestitures, partially offset by $90.4 million gain on the sale of businesses, trademarks and long-lived assets and $10.4 million of environmental and other related costs net of recoveries. 2022 adjustments reflect $428.7 million for a non-cash impairment of the Sperry® trade name and the Sweaty Betty® trade name and goodwill, $9.1 million for reorganization costs, $33.7 million of environmental and other related costs net of recoveries, $2.0 million of costs associated with Sweaty Betty® integration and $0.8 million of receivables securitization transaction costs, partially offset by $90.0 gain on the sale of the Champion trademarks. |
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(2)2023 adjustments reflect the Keds business and Wolverine Leathers business results included in the consolidated condensed statement of operations. 2022 adjustments reflect results for the Keds business, Wolverine Leathers business and Hush Puppies prior to the license model change included in the consolidated condensed statement of operations. |
GAAP Basis | Adjustments (1) |
Divestiture (2) |
As Adjusted | ||||||||||||||||||||
Operating Profit (Loss) - Fiscal 2023 | $ | (68.2) | $ | 137.1 | $ | (1.4) | $ | 67.5 | |||||||||||||||
Operating margin | (3.0) | % | 3.1 | % | |||||||||||||||||||
Operating Profit (Loss) - Fiscal 2022 | $ | (208.4) | $ | 386.0 | $ | (4.2) | $ | 173.4 | |||||||||||||||
Operating margin | (7.8) | % | 6.8 | % | |||||||||||||||||||
(1)2023 adjustments reflect $185.3 million for non-cash impairments of long-lived assets, $47.1 million of reorganization costs, $5.5 million of costs associated with divestitures, partially offset by $90.4 million gain on the sale of businesses, trademarks and long-lived assets and $10.4 million of environmental and other related costs net of recoveries. 2022 adjustments reflect $428.7 million for a non-cash impairment of the Sperry® trade name and the Sweaty Betty® trade name and goodwill, $9.1 million for reorganization costs, $33.7 million of environmental and other related costs net of recoveries, $3.7 million of costs associated with Sweaty Betty® integration and $0.8 million of receivables securitization transaction costs, partially offset by $90.0 gain on the sale of the Champion trademarks. |
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(2)2023 adjustments reflect the Keds business and Wolverine Leathers business results included in the consolidated condensed statement of operations. 2022 adjustments reflect results for the Keds business, Wolverine Leathers business and Hush Puppies prior to the license model change included in the consolidated condensed statement of operations. |
GAAP Basis | Adjustments (1) |
Divestiture (2) |
As Adjusted | Foreign Exchange Impact | As Adjusted EPS On a Constant Currency Basis |
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EPS - Fiscal 2023 | $ | (0.51) | $ | 0.57 | $ | (0.01) | $ | 0.05 | $ | 0.10 | $ | 0.15 | |||||||||||||||||||||||
EPS - Fiscal 2022 | $ | (2.37) | $ | 3.78 | $ | (0.04) | $ | 1.37 | |||||||||||||||||||||||||||
(1)2023 adjustments reflect non-cash impairments of long-lived assets, reorganization costs, costs associated with divestitures, debt modification costs, partially offset by gain on the sale of businesses, trademarks and long-lived assets, environmental and other related costs net of recoveries, and SERP curtailment gain. 2022 adjustment reflects non-cash impairment of the Sperry® trade name and the Sweaty Betty® trade name and goodwill, reorganization costs, environmental and other related costs net of recoveries, costs associated with Sweaty Betty® integration and receivables securitization transaction costs, partially offset by gain on the sale of the Champion trademark. | |||||||||||||||||||||||||||||||||||
(2)2023 adjustments reflect the Keds business and Wolverine Leathers business results included in the consolidated condensed statement of operations. 2022 adjustments reflect results for the Keds business, Wolverine Leathers business and Hush Puppies prior to the license model change included in the consolidated condensed statement of operations. |
Q1 |
Q2 |
Q3 |
Q4 | 2023 Full-Year |
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Revenue - Impact | |||||||||||||||||||||||||||||
Keds business (1) |
$ | 6.5 | $ | — | $ | — | $ | — | $ | 6.5 | |||||||||||||||||||
Wolverine Leathers business (2) |
12.5 | 10.9 | 8.2 | 5.5 | 37.1 | ||||||||||||||||||||||||
Total Revenue - Impact |
$ | 19.0 | $ | 10.9 | $ | 8.2 | $ | 5.5 | $ | 43.6 | |||||||||||||||||||
Operating profit - Impact |
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Keds business (1) |
$ | (1.9) | $ | — | $ | — | $ | — | $ | (1.9) | |||||||||||||||||||
Wolverine Leathers business (2) |
1.4 | 0.8 | 1.1 | — | 3.3 | ||||||||||||||||||||||||
Total Operating profit - Impact |
$ | (0.5) | $ | 0.8 | $ | 1.1 | $ | — | $ | 1.4 | |||||||||||||||||||
Net earnings per share - Impact |
$ | (0.01) | $ | 0.01 | $ | 0.01 | $ | — | $ | 0.01 | |||||||||||||||||||
Q1 |
Q2 |
Q3 |
Q4 | 2022 Full-Year |
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Revenue - Impact | |||||||||||||||||||||||||||||
Keds business (1) |
$ | 20.4 | $ | 24.0 | $ | 21.3 | $ | 17.1 | $ | 82.8 | |||||||||||||||||||
Wolverine Leathers business (2) |
18.5 | 17.7 | 14.0 | 8.4 | 58.6 | ||||||||||||||||||||||||
Hush Puppies (3) |
— | — | 6.4 | 4.9 | 11.3 | ||||||||||||||||||||||||
Total Revenue - Impact |
$ | 38.9 | $ | 41.7 | $ | 41.7 | $ | 30.4 | $ | 152.7 | |||||||||||||||||||
Operating profit - Impact |
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Keds business (1) |
$ | 1.5 | $ | 0.5 | $ | 0.4 | $ | (0.9) | $ | 1.5 | |||||||||||||||||||
Wolverine Leathers business (2) |
1.4 | 1.7 | 0.9 | 0.4 | 4.4 | ||||||||||||||||||||||||
Hush Puppies (3) |
— | — | (0.3) | (1.4) | (1.7) | ||||||||||||||||||||||||
Total Operating profit - Impact |
$ | 2.9 | $ | 2.2 | $ | 1.0 | $ | (1.9) | $ | 4.2 | |||||||||||||||||||
Net earnings per share - Impact |
$ | 0.03 | $ | 0.02 | $ | 0.01 | $ | (0.02) | $ | 0.04 |
Q1 |
Q2 |
Q3 |
Q4 | 2023 YTD |
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Sperry business (1) | |||||||||||||||||||||||||||||
Revenue |
$ | 62.9 | $ | 57.4 | $ | 46.2 | $ | 40.7 | $ | 207.2 | |||||||||||||||||||
Operating profit |
$ | (2.3) | $ | 0.2 | $ | (4.0) | $ | (4.2) | $ | (10.3) | |||||||||||||||||||
Net Earnings per share | $ | (0.02) | $ | — | $ | (0.04) | $ | (0.04) | $ | (0.10) | |||||||||||||||||||
Operating profit adjusted (2) |
$ | 2.5 | $ | 4.6 | $ | (0.5) | $ | (1.1) | $ | 5.5 |
GAAP Basis | Keds and Leathers Divestiture (1) |
Sperry Divestiture (2) |
As Adjusted | ||||||||||||||||||||
Revenue - Fiscal 2023 |
$ | 2,242.9 | $ | 43.6 | $ | 207.2 | $ | 1,992.1 | |||||||||||||||
(1)Adjustments reflect the Keds business and Wolverine Leathers business results included in the consolidated condensed statement of operations. |
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(2)Adjustments reflect the Sperry business results included in the consolidated condensed statement of operations. |
GAAP Basis | Adjustments (1) |
Keds and Leathers Divestiture (2) |
Sperry Divestiture (3) |
As Adjusted | |||||||||||||||||||||||||
Operating Profit (Loss) - Fiscal 2023 | $ | (68.2) | $ | 137.1 | $ | (1.4) | $ | 10.3 | $ | 77.8 | |||||||||||||||||||
Operating margin | (3.0) | % | 3.9 | % | |||||||||||||||||||||||||
(1)Adjustments reflect $185.3 million for a non-cash impairment of long-lived assets, $47.1 million of reorganization costs, $5.5 million of costs associated with divestitures, partially offset by $90.4 million gain on the sale of businesses, trademarks and long-lived assets and $10.4 million of environmental and other related costs net of recoveries. |
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(2)Adjustments reflect the Keds business and Wolverine Leathers business results included in the consolidated condensed statement of operations. |
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(3)Adjustments reflect the Sperry business results included in the consolidated condensed statement of operations. |
GAAP Basis | Adjustments (1) |
Keds and Leathers Divestiture (2) |
Sperry Divestiture (3) |
As Adjusted | |||||||||||||||||||||||||
EPS - Fiscal 2023 | $ | (0.51) | $ | 0.57 | $ | (0.01) | $ | 0.10 | $ | 0.15 | |||||||||||||||||||
(1)Adjustments reflect non-cash impairment of long-lived assets, reorganization costs, costs associated with divestitures, debt modification costs, partially offset by gain on the sale of businesses, trademarks and long-lived assets, environmental and other related costs net of recoveries, and SERP curtailment gain. | |||||||||||||||||||||||||||||
(2)Adjustments reflect the Keds business and Wolverine Leathers business results included in the consolidated condensed statement of operations. | |||||||||||||||||||||||||||||
(3)Adjustments reflect the Sperry business results included in the consolidated condensed statement of operations. |
GAAP Basis |
Divestiture
Adjustments (1)
|
Other
Adjustments (2)
|
As Adjusted | ||||||||||||||||||||
Revenue - Fiscal 2024 Full Year | $1,704 - $1,754 | $(4) | $1,700 - $1,750 | ||||||||||||||||||||
Gross Margin - Fiscal 2024 Full Year | 44.5 | % | –% |
44.5 | % | ||||||||||||||||||
Operating Margin - Fiscal 2024 Full Year | 5.7 | % | 0.3 | % | 1.0 | % | 7.0 | % | |||||||||||||||
Dilutive EPS - Fiscal 2024 Full Year | $0.43 -$0.63 | $0.05 | $0.17 | $0.65 - $0.85 | |||||||||||||||||||
Fiscal 2024 Full Year Supplemental information: | |||||||||||||||||||||||
Net Earnings | $35 -$51 | $4 | $14 | $53 - $69 | |||||||||||||||||||
Net Earnings used to calculate diluted earnings per share | $34 - $50 | $4 | $14 | $52 - $68 | |||||||||||||||||||
Shares used to calculate diluted earnings per share | 79.9 | 79.9 | |||||||||||||||||||||
(1)2024 adjustments reflect financial results for the Sperry® business and Sperry® stores not divested which the Company is closing in 2024. | |||||||||||||||||||||||
(2)2024 adjustments reflect estimated environmental and other related costs net of recoveries and reorganization costs. |