Wolverine World Wide, Inc. · NYSE:WWW
Wolverine World Wide — Q1 2024 Earnings Presentation
26 slides from Wolverine World Wide's earnings presentation, May 8, 2024
Slide 1: Wolverine Worldwide Investor Presentation First Quarter 2024
Wolverine Worldwide Investor Presentation | First Quarter 2024 Ending March 30th, 2024
Slide 2: Forward-Looking Statements
+ Investor Presentation | 1Q24 Forward-Looking Statements This presentation contains forward-looking statements, including statements regarding: the commercial drivers, competitive advantages and efficiencies of the Company’s global platforms; the pace and urgency of the Company’s strategic turnarou
Slide 3: Vision: Consumer-Obsessed, Global Brand Builders
+ Investor Presentation | 1Q24 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 | 1Q24 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 Moab
Slide 5: Global Platforms Enabling Consumer Focus
+ Investor Presentation | 1Q24 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 | 1Q24 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 Investme
Slide 7: Stabilization
+ Investor Presentation | 1Q24 Stabilization Simplified & Focused Paid Down Reduced the Business Debt Inventory $385 million in proceeds generated Net debt $55 million lower at quarter-end Inventory ended 1Q24 approximately $250 since the start of 2023 through May 2024 compared to year-end 2023 mill
Slide 8: Transformation
+ Investor Presentation | 1Q24 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 | 1Q24 Shareholder Value Creation The Company aspires to deliver top-quartile TSR over time as follows: Aspirational Financial Goals Capital Allocation Resulting TSR Growth Investments Organic Revenue Growth Growth Brands: +7% - 10% Funder Brands: +2% - 5% EPS Growth Debt Pay
Slide 10: 1Q24 Financial Results & FY24 Outlook
1Q24 Financial Results & FY24 Outlook
Slide 11: 2024 First Quarter Financial Results
+ Investor Presentation | 1Q24 2024 First Quarter Financial Results Financial results for 2024, and comparable results from 2023, 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, t
Slide 12: 1Q24 Results
+ Investor Presentation | 1Q24 1Q24 Results Financial results for ongoing business¹ as of March 30, 2024: 1Q24 Results 1Q24 Guidance² Adjusted $391 million $360 million Revenue³ Y/Y: -24.5% // C$ -25.1% Adjusted 46.5% Approximately 46% Gross Margin³ Y/Y: +540 bps Adjusted 5.0% Approximately 3.5% Ope
Slide 13: Revenue Performance & Outlook by Group
+ Investor Presentation | 1Q24 Revenue Performance & Outlook by Group Active Work FY23 Results: $1,439 million (-8.3%) FY23 Results: $481 million (-18.6%) 1Q24 Results: $290 million (-24.9%) 1Q24 Results: $90 million (-21.3%) Group FY24 Outlook: 2Q24 Outlook: Decline mid-teens Decline low twenties G
Slide 14: 1Q24 Performance Table
+ Investor Presentation | 1Q24 1Q24 Performance Table Constant Currency (in millions) March 30, 2024 April 1, 2023 Y/Y Change Change Reported Segment Revenue Results: Active Group $289.8 $385.9 (24.9%) (25.6%) Work Group $90.1 $114.5 (21.3%) (21.7%) Other $15.0 $99.0 (84.8%) (84.8%) Total Revenue $3
Slide 15: FY24 Guidance for Ongoing Business
+ Investor Presentation | 1Q24 FY24 Guidance for Ongoing1 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, and reflects the new licensing model recently announced on May 1 fo
Slide 16: Supplemental & Non-GAAP Reconciliation Tables
Supplemental & Non-GAAP Reconciliation Tables
Slide 17: 2023 Transitory Supply Chain Expenses
+ Investor Presentation | 1Q24 2023 Transitory Supply Chain Expenses The supplemental information included below about estimated transitory supply chain expenses are intended to show the quarterly timing of the impact of these items. The transitory costs are more prominent in the first half of the y
Slide 18: Non-GAAP Reconciliations
+ Investor Presentation | 1Q24 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) Constant Constant GAAP Basis Foreign GAAP Basis Rep
Slide 19: Non-GAAP Reconciliations
+ Investor Presentation | 1Q24 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 Divestiture (2) As Adjusted GAAP Basis Ad
Slide 20: Non-GAAP Reconciliations
+ Investor Presentation | 1Q24 Non-GAAP Reconciliations RECONCILIATION OF REPORTED INVENTORY TO ADJUSTED INVENTORY* (Unaudited) (In millions) GAAP Divestiture (1) As Adjusted Basis Inventory - 2024 Q1 $354.3 $— $354.3 Inventory - 2023 Q4 $373.6 $— $373.6 Inventory - 2023 Q3 $563.8 $100.6 $463.2 Inve
Slide 21: Non-GAAP Reconciliations
+ Investor Presentation | 1Q24 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 22: Non-GAAP Reconciliations
+ Investor Presentation | 1Q24 Non-GAAP Reconciliations 2024 GUIDANCE RECONCILIATION TABLES RECONCILIATION OF REPORTED GUIDANCE TO ADJUSTED TO GUIDANCE, REPORTED DILUTED EPS GUIDANCE TO ADJUSTED DILUTED EPS GUIDANCE AND SUPPLEMENTAL INFORMATION* RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DIL
Slide 23: Divestiture and Business Model Changes
+ Investor Presentation | 1Q24 Divestiture and Business Model Changes Impact on Consolidated Revenue for 2022 and 2023 Consolidated Q1 Q2 Q3 Q4 FY 2022 Revenue Reported $614.8 $713.6 $691.4 $665.0 $2,684.8 Adjustment for divestitures(1): Leathers ($18.5) ($17.7) ($14.0) ($8.4) ($58.6) Keds ($20.4) (
Slide 24: Divestiture and Business Model Changes
+ Investor Presentation | 1Q24 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 $346.1 $428.3 $398.2 $397.6 $1,570.2 Reported $22.1 $24.7 $17.7 $12.2 $76.6 (3) Adjustments
Slide 25: Thank you.
Thank you. investor.relations@wwwinc.com
Slide 26: Wolverine Worldwide
Wolverine Worldwide Investor Presentation | First Quarter 2024 Ending March 30th, 2024