Wolverine Worldwide shares slip after shoemaker slashes guidance
Investing.com -- Shares in Wolverine Worldwide Inc (NYSE:WWW) shed nearly a fourth of their value in early trading Thursday after the U.S. footwear maker lowered its full-year revenue and margin forecast, citing the impact from a slowdown in wholesale demand.
Michigan-based Wolverine said it now expects to post annual revenue of between $2.26 billion to $2.28B, down from its prior range of $2.53B to $2.58B. The company's outlook for operating margin was also slashed to about 4.8% from approximately 8.7%.
In a statement, Chief Financial Officer Mike Stornant called the current trading environment "challenging," adding that orders from global wholesalers have decelerated as retailers manage their businesses more cautiously. Like other clothing manufacturers, Wolverine has been impacted by customers choosing to rein in expenditures on nonessential items in the face of elevated, albeit easing, inflation.
Wolverine, known for its eponymous boot brand, rolled out promotional drives in the second quarter in order to entice wary consumers. But the discounts, along with faster inventory liquidation, partly led to a 430 basis point dip in gross margins. Total second-quarter sales also slumped by 17.4% compared to the same period last year to $589.1 million.
Meanwhile, Wolverine announced that Chief Executive Officer Brendan Hoffman is "no longer with the company." Current President Christopher Hufnagel was appointed as his successor, effective immediately.
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