Wolverine World Wide, Inc. · NYSE:WWW
Wolverine World Wide — Q4 2023 Earnings Presentation
28 slides from Wolverine World Wide's earnings presentation, Feb 21, 2024
Slide 1: Wolverine Worldwide Investor Presentation Fourth Quarter 2023
Wolverine Worldwide Investor Presentation | Fourth Quarter 2023 Ending December 30th, 2023
Slide 2: Forward-Looking Statements
+ Investor Presentation | 4Q23 Forward-Looking Statements This presentation contains forward-looking statements, including statements regarding: anticipated benefits of the Company’s global platforms and strategic transformation, including profitable growth and improved operating cash flow, opportun
Slide 3: Vision: Consumer-Obsessed, Global Brand Builders
+ Investor Presentation | 4Q23 Vision: Consumer-Obsessed, Global Brand Builders Portfolio of Authentic + Global Distribution Network & Innovative Brands & Powerful Platforms Focused on helping our consumers live Enabling our brands to focus on healthier and more productive lives consumers, products,
Slide 4: Authentic & Innovative Brands
+ Investor Presentation | 4Q23 Authentic & Innovative Brands Additional Brands: Global outdoor performance Category-leading Premium women’s Trusted work and lifestyle brand running innovation activewear comfort technology Est. 1983 Est. 1898 Est. 1998 Est. 1883 #1 Top #1 Hike 10 Work Run Boots Agili
Slide 5: Global Platforms Enabling Consumer Focus
+ Investor Presentation | 4Q23 Global Platforms Enabling Consumer Focus Commercial Drivers Insights & creative expertise to fuel innovation & storytelling Competitive Advantage Enabler Lean Corporate Functions Creative Insights & & PR In-house Innovation Studio In-market knowledge Model & category e
Slide 6: Strategic Turnaround Unleashing Profitable Growth
+ Investor Presentation | 4Q23 Strategic Turnaround Unleashing Profitable Growth The Company is executing its turnaround with great pace and urgency in three chapters: // 1. Stabilization // 2. Transformation // 3. Inflection to Growth Simplified and focused the business Redesigning the organization
Slide 7: Stabilization
+ Investor Presentation | 4Q23 Stabilization Simplified & Focused Paid Down Reduced the Business Debt Inventory $380 million in proceeds generated Net debt $280 million lower at year-end Inventory ended FY23 approximately $240 since the start of 2023 through 2023 compared to year-end 2022 million lo
Slide 8: Transformation
+ Investor Presentation | 4Q23 Transformation Redesigning the Organization Expand Profitability Investing in Brand Building Establishing a cost structure that Proactive initiatives in 2023 will enable This new cost structure also allows for enables improved profitability and expanded future profitab
Slide 9: Shareholder Value Creation
+ Investor Presentation | 4Q23 Shareholder Value Creation Aspirational Financial Goals Capital Allocation Resulting TSR Growth Investments Organic Revenue Growth Growth Brands: +7% - 10% Funder Brands: +2% - 5% EPS Growth Debt Paydown Total Resulting from revenue Shareholder Profitability growth and
Slide 10: 2023 Financial Results and 2024 Outlook
2023 Financial Results and 2024 Outlook
Slide 11: 2023 Fourth Quarter and Full-Year Financial Results
+ Investor Presentation | 4Q23 2023 Fourth Quarter and Full-Year Financial Results Financial results for 2023, and comparable results from 2022, in each case, for our ongoing business exclude the impact of Keds, which was sold in February 2023, the U.S. Wolverine Leathers business, which was sold in
Slide 12: 4Q23 and FY23 Results
+ Investor Presentation | 4Q23 4Q23 and FY23 Results The Company reports financial results for its ongoing business¹ as of December 30, 2023: 4Q23 FY23 Adjusted $521 million Y/Y -17.9% // C$ -18.4% $2.20 billion Y/Y -13.1% // C$ -13.0% Revenue³ Guidance²: $515 million to $525 million Guidance²: $2.1
Slide 13: Revenue Performance and Outlook by Group
+ Investor Presentation | 4Q23 Revenue Performance and Outlook by Group Active Work FY23 Results: $1,439 million (-8.3%) FY23 Results: $481 million (-18.6%) 4Q23 Results: $341 million (-14.2%) 4Q23 Results: $125 million (-18.9%) Group FY24 Outlook: 1Q24 Outlook: Decline mid-teens Decline low thirtie
Slide 14: 4Q23 Performance Table
+ Investor Presentation | 4Q23 4Q23 Performance Table Constant Currency (in millions) December 30, 2023 December 31, 2022 Y/Y Change 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 R
Slide 15: FY23 Performance Table
+ Investor Presentation | 4Q23 FY23 Performance Table Constant Currency (in millions) December 30, 2023 December 31, 2022 Y/Y Change Change Reported 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%) Tota
Slide 16: FY24 Guidance for Ongoing Business
+ Investor Presentation | 4Q23 FY24 Guidance for Ongoing Business The outlook for 2024, and comparable results from 2023, in each case, for our ongoing business now also exclude the impact of Sperry, which was sold in January 2024: $1.70B – $1.75B Revenue(1) Our return to growth will lag our signifi
Slide 17: Thank you.
Thank you. investor.relations@wwwinc.com
Slide 18: Supplemental and Non-GAAP Reconciliation Tables
Supplemental and Non-GAAP Reconciliation Tables
Slide 19: 2023 Transitory Supply Chain Expenses and Profit Improvement Initiatives
+ Investor Presentation | 4Q23 2023 Transitory Supply Chain Expenses and Profit Improvement Initiatives The supplemental information included below about estimated transitory supply chain expenses and expected profit improvement initiative savings are intended to show the quarterly timing of the imp
Slide 20: Non-GAAP Reconciliations
+ Investor Presentation | 4Q23 Non-GAAP Reconciliations RECONCILIATION OF REPORTED REVENUE TO ADJUSTED RECONCILIATION OF REPORTED REVENUE REVENUE ON A CONSTANT CURRENCY BASIS* TO ADJUSTED REVENUE* (Unaudited) (Unaudited) (In millions) (In millions) Foreign Constant Constant GAAP Basis GAAP Basis Rep
Slide 21: Non-GAAP Reconciliations
+ Investor Presentation | 4Q23 Non-GAAP Reconciliations RECONCILIATION OF REPORTED GROSS MARGIN RECONCILIATION OF REPORTED OPERATING MARGIN TO ADJUSTED GROSS MARGIN * TO ADJUSTED OPERATING MARGIN (Unaudited) (Unaudited) (In millions) (In millions) (1) (2) GAAP Basis Adjustments (1) Divestiture (2) A
Slide 22: Non-GAAP Reconciliations
+ Investor Presentation | 4Q23 Non-GAAP Reconciliations RECONCILIATION OF REPORTED GROSS MARGIN RECONCILIATION OF REPORTED OPERATING MARGIN TO ADJUSTED GROSS MARGIN * TO ADJUSTED OPERATING MARGIN (Unaudited) (Unaudited) (In millions) (In millions) GAAP Basis Adjustments (1) Divestiture (2) As Adjust
Slide 23: Non-GAAP Reconciliations
+ Investor Presentation | 4Q23 Non-GAAP Reconciliations RECONCILIATION OF REPORTED INVENTORY TO ADJUSTED INVENTORY* (Unaudited) (In millions) (1) GAAP Basis Divestiture 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
Slide 24: Non-GAAP Reconciliations
+ Investor Presentation | 4Q23 Non-GAAP Reconciliations RECONCILIATION OF 2023 REPORTED REVENUE RECONCILIATION OF REPORTED 2023 DILUTED EPS TO ADJUSTED TO ADJUSTED REVENUE FOR COMPARISON DILUTED EPS FOR COMPARISON TO 2024 GUIDANCE* TO 2024 GUIDANCE* (Unaudited) (Unaudited) (In millions) Keds and Ked
Slide 25: Non-GAAP Reconciliations
+ Investor Presentation | 4Q23 Non-GAAP Reconciliations RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED 2024 GUIDANCE RECONCILIATION TABLES DILUTED EPS ON A CONSTANT CURRENCY BASIS* RECONCILIATION OF REPORTED GUIDANCE TO ADJUSTED TO GUIDANCE, (Unaudited) REPORTED DILUTED EPS GUIDANCE TO ADJUSTED
Slide 26: Divestiture and Business Model Changes
+ Investor Presentation | 4Q23 Divestiture and Business Model Changes Impact on Consolidated Revenue for 2022 and 2023 Consolidated Q1 Q2 Q3 Q4 FY 2022 Revenue Reported $615 $714 $691 $665 $2,685 Adjustment for divestitures(1): Leathers ($18) ($18) ($14) ($8) ($59) Keds ($20) ($24) ($21) ($17) ($83)
Slide 27: Divestiture and Business Model Changes
+ Investor Presentation | 4Q23 Divestiture and Business Model Changes Impact on Brand and Segment Revenue for 2022 and 2023 Active Group Q1 Q2 Q3 Q4 FY Other Q1 Q2 Q3 Q4 FY 2022 Revenue 2022 Revenue Reported $346 $428 $398 $398 $1,570 Reported $22 $25 $18 $12 $77 Adjustments for business model chang
Slide 28: Wolverine Worldwide
Wolverine Worldwide Investor Presentation | Fourth Quarter 2023 Ending December 30th, 2023