Wolverine World Wide's Sales Drop in Q2

By Will Feuer

Wolverine World Wide, the maker of Merrell boots and Saucony sneakers, reported a significant decrease in sales during the second quarter, primarily driven by a steep decline in its lifestyle category.

Profit and Revenue Decline

The company posted a profit of $24.0 million, or 30 cents per share, compared to $124.6 million, or $1.53 per share, in the same period last year. This is below the expectations of analysts surveyed by FactSet, who predicted earnings of 19 cents per share.

Meanwhile, revenue dropped by 17.4% to $589.1 million. However, this exceeded the roughly $583 million in sales forecasted by analysts, according to FactSet. Sales declined across all segments, with the lifestyle category experiencing the sharpest decline of 38.2%.

CEO's Confidence

Despite the disappointing results, Chief Executive Christopher Hufnagel expressed confidence in the company's future prospects, stating, "We are confident that the work we are undertaking will drive significant profit improvement in 2024 and quickly set a strong growth foundation for the company." Hufnagel was appointed CEO earlier on Thursday.

Outlook Adjustment

In response to caution expressed by retailers regarding wholesale orders, Wolverine World Wide adjusted its full-year sales and earnings outlook downward.

Market Reaction

In premarket trading, shares of the company tumbled 28%.