The US shoe and fashion group Wolverine World Wide Inc. has had a successful start to the 2022 financial year. In the first quarter, the company “delivered strong financial results despite ongoing supply chain challenges and macroeconomic headwinds,” CEO Brendan Hoffman said in the interim report released on Wednesday. “Revenue and operating margin exceeded expectations despite pressure on gross margin from higher supply chain costs and a shift in distribution channel mix.”
In the first quarter ended April 2, the parent company of brands such as Merrell, Saucony, Hush Puppies and Sperry had consolidated sales of US$614.8 million (€582.5 million). This corresponded to an increase of 20.4 percent compared to the same period of the previous year. The sportswear label Sweaty Betty, which was acquired last August, contributed to the strong growth, contributing 53.6 million US dollars to total sales in the past quarter. Adjusted for the contribution of the newcomer, consolidated sales rose by 9.9 percent.
High non-recurring charges caused net income attributable to shareholders to slide to $9.7 million from $38.5 million in the first quarter of last year. Diluted earnings per share fell to $0.12 from $0.45. Adjusted for special effects, however, it rose from 0.40 to 0.41 US dollars.
Overall, the group was able to exceed its own expectations in terms of sales and earnings. In view of the “continued strong demand” and the easing of delivery difficulties, the company confirmed its forecast for the year. For 2022, management continues to expect sales growth of 15.0 to 18.0 percent to between 2.775 and 2.850 billion US dollars. Diluted earnings per share should reach USD 2.30 to USD 2.45, adjusted for special effects the target range is USD 2.50 to USD 2.65. Compared to the previous year, this would mean an increase of 19.4 to 26.5 percent.