Wolverine World Wide Inc. (NYS:WWW) , the apparel company with brands including Merrell, Saucony, Sperry and Stride Rite, reported second-quarter profit that beat expectations but revenue that missed amid a "slowdown in June shipments," and lowered its full-year outlook. Net income rose to $124.6 million, or $1.53 a share, from $44.7 million, or 53 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share slipped to 66 cents from 67 cents but beat the FactSet consensus of 64 cents. Revenue grew 12.9% to $713.6 million, but was below the FactSet consensus of $737.4 million. "We faced unplanned headwinds related to elevated customer inventory, a stronger US dollar, and some lingering supply chain delays, but our operating margin was better-than-expected in the quarter. While we continue to expect sequential growth acceleration in the second half, we now have a revised outlook for the back-half of this year that assumes higher promotional activity and elevated inventory in our wholesale channels," said Chief Executive Brendan Hoffman. The company cut its 2022 guidance ranges for revenue to $2.74 billion to $2.79 billion from $2.775 billion to $2.850 billion and for adjusted EPS to $2.10 to $2.20 from $2.50 to $2.65. The stock, which is still inactive in premarket trading, has run up 19.7% over the past three months while the S&P 500 (S&P:SPX) has gained 3.0%.
Aug. 10, 2022, 6:44 a.m. EDT