US-based apparel and footwear company Wolverine Worldwide has posted a revenue of $589.1 million for the second quarter of fiscal 2023 (Q2 FY23), a decline of 17.4 per cent compared to the prior year, and a 17.3 per cent decline on a constant currency basis. Revenue from the ongoing business was slightly better but still down at $578.2 million, declining 13.8 per cent on a constant currency basis.

The company’s international revenue from the ongoing business also declined in Q2 FY23, reporting at $260.9 million, down 6.7 per cent compared to the prior year, or 6.2 per cent on a constant currency basis. Direct-to-consumer revenue, which came in at $132.4 million, was down significantly by 20.3 per cent compared to the prior year and down 16.4 per cent for the ongoing business compared to the same period last year, Wolverine Worldwide said in a press release.

American apparel company Wolverine Worldwide reported a Q2 FY23 revenue of $589.1 million, down 17.4 per cent YoY.
The international revenue and direct-to-consumer revenue also declined, while the gross margin dropped to 38.7 per cent.
Selling, general, and administrative expenses were up, and inventory was down sequentially from Q4 FY22.

Gross margin for the quarter was 38.7 per cent, compared to 43.0 per cent in the prior year. This decline reflects 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.

Selling, general, and administrative expenses for Q2 FY23 were $181.7 million, or 30.8 per cent of adjusted revenue. Adjusted Selling, general, and administrative expenses of $192.8 million or 33.3 per cent of adjusted revenue were still 80 basis points higher than the prior year.

In terms of inventory, the situation at the end of the quarter was $647.9 million, down approximately $97.3 million sequentially from the fourth quarter of fiscal 2022.

The company also announced that Chris Hufnagel was promoted to president and chief executive officer.

“Our second half outlook, as reflected in our updated annual guidance, is disappointing but 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,” said Chris Hufnagel, president and chief executive officer. “The current adversity has not only deepened our conviction that our strategic direction is more correct than ever, but that we must execute it with greater boldness and speed.”

Fibre2Fashion News Desk (DP)