Wolverine World Wide, Inc. · NYSE:WWW
Wolverine World Wide — Q3 2023 Earnings Presentation
20 slides from Wolverine World Wide's earnings presentation, Nov 9, 2023
Slide 1: Investor Presentation third quarter 2023
INVESTOR PRESENTATION third quarter 2023, ending september 30th, 2023
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements, including statements regarding: growth of the Company’s brands; strengthening the Company’s balance sheet and redesigning the Company; pursuing strategic alternatives for the Sperry brand and exploring the sale of non-
Slide 3: Positioning for Future Profitable Growth
Positioning for Future Profitable Growth Authentic, innovative brands A global distribution network Strengthening the balance sheet positioned in healthy active driving balanced revenue and redesigning the company to categories poised for growth… across regions and channels… become a consumer-focuse
Slide 4: Stabilizing Wolverine Worldwide
Stabilizing Wolverine Worldwide Focusing Brand Portfolio Reducing Debt Rationalizing portfolio to simplify the business and enable investment Paying down debt with portfolio rationalization proceeds and cash flow behind our biggest growth opportunities 1,250 6 $1,020M 1,000 $930M ~$850M 5 Net Debt •
Slide 5: Authentic, Innovative Brands
Authentic, Innovative Brands Additional Brands: Revenue Revenue Revenue Revenue FY22 Actual: $764M (+18%) FY22 Actual: $505M (+6%) FY22 Actual: $212M (-14%)¹ FY22 Actual: $248M (+9%) 3Q23 Actual: (-24%) 3Q23 Actual: (-14%) 3Q23 Actual: (+19%) 3Q23 Actual: (-5%) 4Q23 Outlook: High teens 4Q23 Outlook:
Slide 6: Global Distribution Network
Global Distribution Network US Wholesale Regions Rest of the World 2022 Revenue (Outer) | 2022 Pairs (Inner) • Curated set of retail partners to enable diverse distribution and segmentation strategies 170+ across our brand portfolio, including: • Countries and territories in which products are marke
Slide 7: Investing in Brand Building
Investing in Brand Building Critical Enablers: Investment focused on the Build Tell biggest growth opportunities Awesome Amazing Products Stories Marketing Digital Pictured: Saucony Human Performance Pictured: Wolverine's Project Bootstrap initiatives with YouthBuild Grand Rapids, & Innovation Lab a
Slide 8: 2023 and 2024 Profit Improvements
2023 and 2024 Profit Improvements Expected profit improvements driving margin expansion and capacity to invest in our brands, platforms, and demand creation Annual Supply chain and logistics cost improvements 2023 2024 will be driven by raw material vendor $M Actioned Incremental $155M Savings conso
Slide 9: Shareholder Value Creation
Shareholder Value Creation Aspirational Growth Long-term Targets: Financial Aspiration: Active Group REVENUE GROWTH Mid-Single Digit New leadership acting with urgency: Track record of successfully building global +7-10% Revenue Growth brands and transforming businesses GROSS MARGIN 45% - 47% Portfo
Slide 10: Financial Results
FINANCIAL RESULTS third quarter 2023, ending september 30th, 2023
Slide 11: 3Q23 Results
3Q23 Results $519.5M Adjusted Revenue(1) -20.0% // C$ -21.1%(1) vs. 3Q22 Third quarter revenue for our ongoing business of $519.5 million was in line with our outlook. 41.2% Adjusted(1) Gross Margin (0 bps) vs. 3Q22 Accelerated liquidation of end-of-life inventory and a higher mix of third-party dis
Slide 12: 3Q23 Group Performance
3Q23 Group Performance ACTIVE WORK LIFESTYLE $328.6M Revenue -17.5% vs 3Q22 $123.0M Revenue -22.1% vs 3Q22 $62.8M Revenue -46.6% vs 3Q22 Group Revenue Mix:
Slide 13: 3Q23 Results
3Q23 Results Constant Currency (in millions) September 30, 2023 October 1, 2022 Y/Y Change Change Reported Segment Revenue Results: Active Group $328.6 $398.2 (17.5%) (19.0%) Work Group $123.0 $157.8 (22.1%) (22.6%) Lifestyle Group $62.8 $117.7 (46.6%) (46.8%) Other $13.3 $17.7 (24.9%) (24.9%) Total
Slide 14: 2023 Full Year Financial Guidance
2023 Full Year Financial Guidance Financial results and guidance 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 August 2023, the non-U.S. Wolverine
Slide 15: FY23 Guidance for Ongoing Business
FY23 Guidance for Ongoing Business The trading environment is challenging, especially in global $2.19B – $2.20B Revenue(1) -13% vs. FY22 wholesale channels where order demand has slowed as retailers manage their businesses more cautiously. We now expect to end the year with total inventory of approx
Slide 16: 2023 Estimated Transitory Supply Chain Expenses and Profit Improvement Initiatives
2023 Estimated 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 impact of these items. T
Slide 17: GAAP to Non-GAAP Adjustments
GAAP to Non-GAAP Adjustments RECONCILIATION OF REPORTED REVENUE RECONCILIATION OF REPORTED REVENUE TO ADJUSTED REVENUE* TO ADJUSTED REVENUE ON A CONSTANT CURRENCY BASIS* (Unaudited) (Unaudited) (In millions) (In millions) GAAP As Divestiture (1) Foreign Constant Constant Basis Adjusted GAAP Prior Ye
Slide 18: GAAP to Non-GAAP Adjustments
GAAP to Non-GAAP Adjustments RECONCILIATION OF REPORTED OPERATING MARGIN RECONCILIATION OF REPORTED GROSS MARGIN TO ADJUSTED OPERATING MARGIN TO ADJUSTED GROSS MARGIN * (Unaudited) (Unaudited) (In millions) (In millions) GAAP Basis Adjustments (1) Divestiture (2) As Adjusted GAAP Basis Adjustments (
Slide 19: GAAP to Non-GAAP Adjustments
GAAP to Non-GAAP Adjustments RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED 2023 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 DILUTED EPS GUIDANCE AND SU
Slide 20: Contact Information
Contact Information investor.relations@wwwinc.com Mike Stornant Chief Financial Officer, EVP Alex Wiseman VP Finance, FP&A