WWW - Earnings call transcript Q2 2024 | Wolverine World Wide, Inc.

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Operator

Good day, everyone, and welcome to today's Wolverine Worldwide Inc.

Second Quarter Fiscal 2024 Earnings Call. [Operator Instructions] Please note this call is being recorded. I will be standing by if you should need any assistance. It is now my pleasure to turn the conference over to Alex Weisman, Vice President of Finance.

Alex Wiseman

to quarter welcome call. XXXX and morning, our fiscal second conference Good

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Christopher Hufnagel

you Thanks, today's us Alex. and morning, on joining everyone, Good for thank call.

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their to versus that insights have activations, do times campaign to As brands perform only and sister need funnel its I Were They connections more based Shorts win. need messaging DNA. In shorts quarter, timely emotional with the can at full second great shared Sweaty double its the last to unique women of sale engage consumers the leveraging nearly consumers. the its their consumers from with one inspired products its to bodies earlier, tell, about I embrace campaign. shorts, that believe and feel that stories they year insecure of featured just also help with wearing well than on The Betty deepen Damn brand its

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quarter as $XXX the like franchises influential including momentum. The the retail while position a Agility elevated brand stores generated and X at media in sell-through quarter share growth opened a continues and are at product very highly with second in drove golf key the As of consumers and hike the which in trial in of cool category in a year. second acceleration as brand, several city. performing result, and faster stores Grayson, energy Japan, the despite field to premium achieved styles its their modernize and collaborations Merrell the key The plan, X, pushed and its lifestyle Peak Merrell's younger partner lighter impressions to award-winning straight Tokyo out and million a Moab Merrell together ahead well, with third in of new with Merrell quarter, consumers headwinds through well outdoor market over create earned relevant price helping process. Internationally, reach drive also Speed points brand sold several quickly gains. last

has around footwear, markets through in I'm company. As in category Miller, Merrell the the With to brand products a it and with our the opportunity, trend-right building call XXth to into leader that, world. and day over Today's innovative to her very the pleased the CFO. reinvigorate outdoor Taryn stepping the hand key new

you more quarter second results through much take updated I'll detail. in Taryn? So and our guidance

Taryn Miller

of I everyone. to brands, potential strategy ago and welcome, Wolverine the of and Thank commitment deliver business with shareholders. a X strong improve the our months you, and to more our the our ultimately value belief consistent profitable drive greater in Worldwide health joined Chris, financial and growth to our

our from traction see taken and and performing become how with to are new this transformation. better company beginning actions at pleased are we of are stage the We a to

Turning and for this to quarter XXXX. results our financial outlook the

to in towards drive are encouraged profitable quarter sustained we teams sequential foundation by earnings revenue growth growth. We the and our made the delivered the second building further and progress

business ongoing execution timing Approximately $XXX.X supply delivery over our chain to The million California the second trends our the continued of Louisville shift million $XX was million avoiding of disruption, revenue demand to quarters. quarter $XXX million minimal outlook our was third approximately center of improve. Second for above the and third $X center our between as from therefore, of the shift completed and expected was Saucony previously distribution inventory transition with of to our quarter. approximately a

addition, wholesale improved for Revenue sequentially than quarter. first trends orders million a year-over-year of In ongoing was second quarter the originally $X XX.X% shipped expected. in business there to approximately from in decline of XX.X% the earlier our decline of a that

basis year, not our expectations of this year-over-year Adjusted in performance. operating includes lower business are model points we seeing by year. Gross revenue activity excess the exceeded were as margins We for than our of inventory of healthier that of and second leverage a operating the the our quarter of margin did demand outlook initiatives. stronger the our consumer-focused strategy. The cost and the quarter execute versus driven with on XXX in second including quarter brands liquidation benefit chain increased and and revenue in X.X% increased million $XX cost Adjusted margin changes. promotional for end-of-life sales reflect gross last products line repeat XX.X% comparison mix more supply XXXX

quarter result per year. in a in share of operating improvement and adjusted As the improved $X.XX from the the second diluted in quarter. Adjusted last $X.XX first to earnings the second revenue was diluted quarter margin, per in share earnings of $X.XX

and We last debt make was last benefit and business sheet. approximately versus inventory was we planning on million, from down the balance $XXX progress continue year. XX% year $XXX as optimize for $XXX Inventory the execution. to strengthening million ongoing million down further from Net levels improved

turning updated outlook to XXXX. our Now for

of our the and are raising guidance. midpoint earnings We revenue

business distributor to solid our While in strengthened our results, wholesale a is now our outlook. Fiscal our business half in confidence from operate expected the with first business our for development global environment, the we and book continue of dynamic combined order represents revenue XXXX have ongoing of increase May our versus the range XX.X% midpoint $X.XX $XX XXXX decline the outlook. This from midpoint of the of compares ongoing in of revenue the $X.XX billion an at million our $X.XX to and billion, a of at range. to billion

timing heavily items that recur generated liquidation, in first $XXX will related call, changes our which there to a shipments. As XXXX The revenue to we items shift model the first shared were distributor year. quarter in inventory discrete business half of not XXXX of was in was total weighted international end-of-life and by these million, the

Excluding decline X.X%. XXXX is revenue the at expected midpoint discrete full approximately items, year to the

activations. build second to We expect the sequentially and throughout as to momentum improve half new behind revenue brands continue strengthening market our products

shared addition, earlier In discrete that half. the I the will in headwinds abate second

single mid-teens in in website. a the are consistent be percentage year-over-year. Brand high digits and XXXX We presentation what decline on shared our continue in to by a to May work expectations group revenue we can year by with expect revenue full found decline investor year-over-year our active percentage to group and performance

Turning to gross margin.

significant The Interest approximately sales. X.X% approximately to range Adjusted of mix share normalized business, we of last year. As X.X% chain from to to earnings result foreign earnings to in flow expansion of levels the compares product of include are actions, operating the million, a to in midpoint as including to impact protection taken price of expected offset and currency per gross $X.XX, share be rate strong be actions a by year, expect last approximately the be cost inventory incremental $XX XX.X% to tax full of expected XXXX. a Adjusted benefit negative from is compared better expenses the we've debt the savings over in benefit approximately approximately $X.XX of brand adjusted down projected These $X.XX to the range, the well XXXX to million and margin are $X.XX XXXX. to as reduction XX.X%. of be other be healthier or and margin per compared supply is approximately million continue and at administrative restructuring XX% the $XX basis outlook range the investment for company from revenue of be compared expenses the expected our operating inflation. Adjusted of cost is approximately partially XXXX. points which now XXXX, structure Working is selling, the over compensation effective revenue. expected our reflects diluted to XX% range The $XXX compared a cash remains exchange. This optimization at to $XXX in the or lower outlook to XXXX. includes in projected diluted XXXX. Adjusted general midpoint the savings, outlook million at record priority and in in up incentive XXX capital midpoint and

We to the expect million during Operating expenditures. in $XXX million we inventory million $XX capital $XX $XXX range to excess flow inventory. to expected the decline work cash free specific is areas by approximately at of through of year least as with of million continue

expect improve quarter. by for We third debt $XXX nearly our outlook million million year-end. Shifting the to to net to $XXX at

XX%, of We expect revenue $XXX in prior to of the year-over-year improvement a third decline revenue X quarter reflecting quarters. approximately compared performance continued million, approximately

basis points margin is first approximately quarter from and half XX%, in performance. an with of expected gross Third be last to increase XXX our line year

of operating strategy to with the improvements $X.XX. is Wolverine's Chris our to quarter hand and let become position. adjusted earnings enable the consumer-obsessed questions. execution share builders. margins brands financial coupled in We approximately transformation summary, growth margin of in our operating strong consistent brand our us adjusted third strengthening X% and with back driving approximately call open flow global expect with new for earnings before more diluted to me we in profitable improvements And it up In that, The cash and per revenue to and brands of and invest capabilities and clarity will

Christopher Hufnagel

Thanks, Taryn.

Before concluding our tomorrow, reflect on I want you've you, and a delivered. X-year asked thank our of and lot remarks, heartfelt I've you sincere to to extend this anniversary global role I prepared as my in teams. and a

great. support your year. and this work been past Thanks your You've simply for

You've story. in great be I chapter what a helped first turnaround write believe will the

transform stabilize Over but plan more Wolverine, one believe the by list an extensive front of last a initiatives as begin we've and days, to I has team what as to so us. a company. executed XXX accomplished part there's I'm our of comprehensive of inspired in the much

performance. by excited mode we're in While points know proof the returns we've our to for give morning. strategy, to for turn we us our chapter, time products positioning better, and all by better potential next and and we with brand's Thank it's must storytelling the this our drive to leading page. for for greater and better and That's shareholders. taking us you confidence brands, better time seen us be early our that

Operator

from [Operator Instructions] We'll take Stifel. our first Duffy Jim with question

Jim Duffy

visibility? -- want in elevation good I executing reset you're to the on proof your partners evidence firstly, give are Chris, big efforts marketplace channel some I dialogue to of secondly, forward plan. and you brand of translating the guess, to There's how speak marketplace. update tangible there's points picture you're an having sort the then is the complete? can And a us with

Christopher Hufnagel

I phase transformation I the are question. still resets our think are say working of Yes, complete. would of the for plan. not fully we turnaround for part hard mean, that sure. I as Thanks the

At partners, certainly to same accomplished So I I is the I that very And we've year. still the done, ahead a around reengaging efforts that past time, work just a think there say out to ourselves our time. domestically distributor manner in our don't world think it's do. of wholesale amount it's and a tremendous and get both want constructive more the of from in short over partners very period

think becoming distribution. more I it's segmentation thoughtful about and

really to a to one product about work down out to it's push attacking begin I so hard not and our levels the that inventory pivot doing really model. think but here points think to same the I and things. we're working way that declaring all we're stronger bring early really and rogue feedback pull selling through. or the our At proof right victory the the And is time, results no

sort product from in on key think pipeline positive. the creation partners the I demand certainly where feedback is of is

about has out want front Saucony same And certainly pivot product encouraged and sell the business, faster had that I traditional and we that. think Saucony to marketplace. the hype really we're you lighter where we want The pretty category challenged. really by to the a modernizing strategy. away I'm been is reception that, which we with from Saucony's has those how products. line, of the We've that doing thing made hike outdoor in that And as talk think Merrell, about hard know, in

a perspective, its leading market. Merrell then a standpoint, looks that work And At has from to group time, with right distribution in share standpoint, accelerating market that a I'm trend really encouraged the same by is made what the progress wholesale share volatile gains a I'm encouraged product and more from partners market what our be from on getting gain continues the pretty like. really really work working

reset forward would successful, that not proven say But the early driving and I actions is day. to taken each complete. we've keep have going business think I we're So the

Operator

comes with Mauricio UBS. next from Our Serna question

Mauricio Serna Vega

in more -- EPS be previous for quarters combined. more guidance, the implications making growth out the Maybe looking like could X overall -- you maybe also on I see quarter, flat the at the to higher a the Nice all results. you could bit recurring the the help would think half? on a trends at little bridge brands? DTC I'm us the you implies fourth earnings there will the year-over-year by the than talk you progress DTC second for more of just maybe making about on than out the Congratulations end, company the also, it be basis. And

behind just that? want So understand what the I drivers are to

Jonathan Komp

from did an And to the over Sure. inflection the see hand from I'll cadence. perspective. where about, second which take the manage a growth quarter I'll and we be in to e-commerce we touch encouraging, in promotional DTC inflection both is first talked Taryn thoughtful were how on it the quarter, the We first nice more which we to also EPS. then working an to on question, -- and sites those

seen a pivot business. that from have So of perspective. us I nice we ahead DTC have a in think big of a we couple Obviously, quarters

up Saucony's businesses e-commerce were business specifically, was which seen well. over in as certainly quarter, XX% And But the we by. take improvement other we've encouraged

a So traction about a expression our it's a brand. we time a and get we're us, business to wholesale It's business the good we near hearts. of spending for think is And important dear lot It's that on. certainly the it's important. as proof We very business, there. think that points of it's broader

we by latter been Taryn had encouraged DTC quarter work, we of expectations. first And certainly us, part of last over to ahead in quarters X the progress year. certainly and about the although from So the talk but EPS the have at big where to

Taryn Miller

Yes. Thank you.

in that in half place, up. Those the momentum that and that share per have will from the first we from The and we're second them half. product $X.XX already At in impact And executing to $X.XX chain international those and momentum cleaner that product also introductions the the and starting to we're and new and seeing improvements the are to higher lower driving really inventories we this reductions that Supply be in half. expected. driver design increased of a revenue, of and from up a earnings seeing the brands primary our market, a at the the we're step we're the showing cost SG&A are in order wholesale savings see in that revenue we're the our step-up see book is in second expected half midpoint, right. year. our increase the as in the back plan, in bigger You're retail is

half primary that reductions. and SG&A augmented that the in savings year. second earnings of the supply cost revenue it's And step-up the in So of by is think I the chain the driver

Mauricio Serna Vega

on one. XXXX or you that And can preliminary Maybe books? do commentary then us you order Super last have Got helpful. spring thoughts views it. give any one on any the

Christopher Hufnagel

order can specifically our outdoor half Saucony, been appreciate even innovation there. And early same we the I I say the pivots question. can we're modern evolution for is I Obviously, encouraged still around very in work of that really in windows product The outdoor positive brand brand pipelines 'XX. in made think, first from it's the that by But brought, be Merrell where to group. those traditional very and are. strong. we've things a then have some the of brand in Reactions said the of

we speak we'll to you to encouraging. from that any is we'll on much picture that have the clearer we've where to wholesale order first book partners product So shown the and months, color early encouraged book and half to too November. in that early reads am when the than sits provide the see But say then pipeline order other gotten develop over more of I by a next the handful how we've

Operator

The from next with comes Dana Group. question Telsey Telsey

Dana Telsey

the progress. nice and see Taryn, Welcome, to

Does the you what by it wholesale account? Chris wholesale What break did think you channel -- about As as internationally? of you see differently you did types see down domestically? of think distribution,

think that costs as least or levels chain inventory And on inventories puts in how with coming seeing? then down about And down $XX do by anything takes? they year-end? going you're freight forward supply also have, at Any million you and for differences

Christopher Hufnagel

Yes.

we half global Of which channel a course, first the very Certainly, back let expecting year. both large the Dana, operate. in what different, run Karen to costs and both we speak and supply the I'll I'll the by for certainly by and it's different chain business, we're of part, handle it's region,

inventory Wolverine has as down work a and materially we Our U.S. is part up materially, today come phase which retail to is health inventory in turnaround this marketplace. the of market the -- in clean at key down

by bit by and channel. bit little little a certainly varies brands it think I a

by, bringing of challenges every challenges. and winners I products innovative same some of work think us the there from At marketplace product are with it really I are immune reactions, where strong the don't those as for was through in the our time, well innovation are market. so we wholesale is why all U.S. fast we impeding we which encouraged storytelling, we the in strong was are documented. important it we're the in did pipeline. because getting inventory to are which And as think

package well. of I different with reaction. seeing and out London we're place a bit appetite customers there little them fantastic a strong we in Saucony, London as couple a can EMA, by really the category U.S. also necessarily that things satisfy expansion are what needs in horizon. Around can encouraged, counts are where fast But solve consumers' introductions I both key Run, challenges then for certainly we XX-K, that when we underestimate compelling there's specifically and even short once brand was But world, really don't as some Saucony, ago very abating landscape, storytelling, was check brands consumer where that met event. Again, which in been the which is I led for an product in don't So and products see to at wholesale successful, in the as weeks some is with think bring what's momentum. a to like brands new new has there. ready Certainly and have and the of products the like from Saucony begin and was replenishment we bring term, door retailers their appetite getting the of in Merrell the on that the want those particularly and by needs. a innovative just

continues the chain But certainly, world it's have I the a marketplace to it again, they of think, to that them, consumer deliver now. But with remarkable the easiest diversified when level and Taryn not wholesale U.S. I is given headwinds talk is hand given about And inspire to how our think question. a buy hard in we can the to regions right portfolio in. over things supply brands stroke broad resilience paint the I'll of of they receptivity. again, operate shown the face. their So some

Taryn Miller

Yes.

of to the guidance. we place May about in what cost terms the As in say talked news don't a second lot from that the both -- benefit would shared the as share on as expect On chain We we well earlier, point, supply of based half in half. on have do second to logistics I us we sourcing in I we've initiatives, new our to our have the in benefit

now, on We based the have the chain in ocean operating and anticipating have a monitoring in impact the contracts from that's our how could meaningful that. cost we place impact going terms is of are aren't based supply we it on deliveries of the right in and the on volatility dynamics closely right freight chain that now supply terms in

Operator

Sam We'll take our from Poser Williams with question next Trading.

Samuel Poser

breakout I to a performance just on -- I'd lifestyle. like are know One, of and things. the you between seeing Saucony. How couple

in up and there brought You I'll stop move within well, both. And a on your moment. --

So let's start there.

Christopher Hufnagel

think on both made I but And that by the Saucony. short certainly the again, piece Yes, I progress in think we've run Saucony. fronts, we're performance of is encouraged, order in

pleased 'XX. in used Triumph have architecture there's to been think innovation credit we in manage introductions about 'XX, really pivot for I Saucony. about strong. ride I 'XX, the And collection. to team of sell-throughs the the product tech. they innovation piece lifestyle give whether Hurricane run how then that they're in piece, very retro And how performance performance really a -- there's Saucony the And related brand. And brought that colors it lifestyle think really the and order, thinking great has the a and really congratulations short distribution, it's very and are Guide a the a broader line to brand endorphin how the Those to I approached of think we materials, I run the

in marathon a too couple Elite weekend is Olympics which and new of runner it the early platform, in just ago. a dropped credit run years running next we the a making. month in we on sold have when out a the hours We in just And

now, way to it trying really think now and probably key organization, supply that. that become the I'm consumer-obsessed supply and seeing And a that. ago. sell-throughs. where chasing And benefits I opening played of think by actually largely is And we're nimbleness we've honestly, of we nice in that really strong opportunities in to we we're also to now. down able lots about And way what that agility the nimbleness So lines And then good a chase considering before. But to problem as a really chain before by certainly, we've build by having and around to chain supply a there's speaks standpoint, a is encouraged able collaborations to within just chasing, chase certainly, were we really that that additional expedite a extend right Retrotech are And react. encouraged we're a right being and in Saucony distribution beginning moment we're to wouldn't adjust led to from what the then not pickup. And product trying have year selectively from been to has can have, a been is how heat to and that large the work more pivot brand we chain business Saucony very to archive. having done categories that

So saucing in it's other, I the the bit a one progress it's of encouraged little and or say can't both. by

Samuel Poser

I My writing the early your me are are product lot on tech now just just orders people of talked about new -- to a so you that January, going retro on orders checks mean on now. to I'm go want telling that. that that. more distribution increasing I into you're to up follow of getting nimbleness, February on

demand But demand isn't you the necessary? if You given backlog. if that potentially guidance assuming signs talk the I orders about there are to forward your didn't there's -- nimbleness, forward, allow would nimbleness into your to pull if QX, your want your but pull assume

Christopher Hufnagel

Yes.

is nimbleness say the faster I fastest a always have the working relative not would chase and become think opportunities. and more to be I we're been we reactive organization to. organization more and

be we're us going to bit little you've manage of and And going think focus all to try a Again, and differently. this I that. to sell-through, some our how on also, grow. shareholders to brands. and returns ultimately we're we level able immediate to the just sell-in to growth manage want obsess going to want to on long-term for Sam, been not jam sustainable selectivity in. We're drive brands think evaluating going to of sell how pivot we we're on before, and to fast We of our I the have with and detriment thoughtful about So we're not just

So we will responsibly. chase

we're open differently, company we world Consumers more certainly be and will Wholesalers reactive. are better quicker. working react to can a moving are build we is be the behaving to moved. have differently. also can And to responsibly. that The has We behaving world that how

Samuel Poser

I'm -- numbers than more. was to or better business, significantly the really adjust one X anticipated, sorry bother you Wolverine, better but you that didn't on boot much. One, that for on the

right those along, overall, but longest you it of softening, it's has you really wondering think Merrell which And and was secondly, but So go of like do and think then to Saucony, is of those the way forwards being was progress look I the when pull or part now? why I the furthest sounds made whatever? which business SweatyBetty good Wolverine, that with at to the guess, you

Christopher Hufnagel

has shifts part from brand quick Yes. category also really we I'm Saucony strategy pleased has very short tailwinds. all really in first. very made in in thoughtful I'll significant by and that that a some the shift progress just think brands of a And really, market benefiting that that. really hard past benefits that space that how Sweden execution. Saucony worked Saucony a grow. over a manage the in is is team operating that Good has a year. Sweaty latter of And of but order half I also fairness structural Betty, standpoint, I with is I question. category, that in answer and from to in sort think ton to credit for fragmented, team. We've think the there that from

which, We place. in votes because a how Sweaty that single really how is made by but and we've what by goes. But to the were by is done leader a Sweaty I'm slow Betty really have team which honestly, progress the new lot day that I love headwinds. along time have largely I facing and they're where certainly, that encouraged Merrell, made in the we've business, the encouraged I with of foundation company, spent nice control and category running business you encouraged the we really after of the a lot a Betty business, to Merrell, with every for getting consumer direct-to-consumer that grip some acquisition. the do integration progress

you've leader, basis we really the XXX really and And what us it that's really another do. hard seen quarter is innovate, incumbent working is gained share upon last And points to Merrell to trail Peak the sell-throughs seeing are speed we're headwinds Moab styles, whether X, Agility and lighter really there athletic the encouraged after get faster more and it's by, to positive I'm the it's whether there. but market

from of It's probably brand. missed there work for you've called And what and we the Western is And And go those just doing. Merrell a fast model And didn't an that in specifically And more her enough there. brand. we of have we I we where is you do It's were were honestly progress consumer on know trail that had on. around this, assessed we've think trends when focused made best. then to think couple at the think particularly hard brands and us team I is We've sentiment, that's to marketplace. work its sort that in work. we I not a frankly, trend. And some I lifestyle what also think pivot boot a we outdoor perspective, worked

we pipeline half So half and that Saucony I and encourage think first there's our along, tailwinds. advancements your question, to answer half think about in benefiting time, 'XX At product guide a the broad-based back of the is 'XX. standpoint the us think as albeit I of from furthest the from second same

Operator

Our next question comes BNP Paribas. from Vasilescu Laurent with

Laurent Vasilescu

you on in I the a disruptions XQ. assume? shift quantified to ask of there around million prepared And supply And a Chris, some anticipating And what the I from if so, there remarks Are might that revenues the kind you from number XQ are the XQ chain. into shift should execution XQ? we clearly, in be wanted call business. continued on that into $X congrats on appreciate -- about

Christopher Hufnagel

the Bangladesh happening footwear -- disruptions with in chain, where shipping, are in what's whether do are there supply now, from. it's certainly, right have headline, the we Sea Red where At where source containers or what's it's whether in we happening

all what open can our to think time, realities to really I we control. the those manage working have to control working wide and of we them at eyes same

past As we on same the not it we're closely, between monitoring shifts, QX quarters we're week. out, closely and of really expecting think Wolverine. And parts working time, tie it's together the done every all worked talk disruption. sort more QX this At something one of play due those and based has the but I that material over about we've that currently really stands, the in organization organization extraordinarily much together of an to as how things notion to hard year of the one any single that as

can. immune At from our and I some our mean closely macro got brands we as and solve as collectively working are that think best them as -- working they challenges. them to time, our functions same of chain doesn't So as supply It we're and to corporate ever we're think we've I won't had. visibility the those we

the attention. got going a supply connected paying do chain. and very best navigate we're in great very global to the to to our leader those We're we're through brands, We've So challenges.

Laurent Vasilescu

Can your you Bangladesh. very big on you I quantify XXXX. your Chris, the a then of to us quantify was those chain, helpful. both impact And from of how tariffs I countries? that if as XXXX, think that's exposure about you think is impact XX% China about Bangladesh give XX% China last for think percentage updates can Maybe report maybe your sourcing? mix. Maybe report we the supply on some for on showed potentially last -- maybe can And was

Christopher Hufnagel

XX% less. about as is it is Bangladesh today, China and sits

Laurent Vasilescu

or how there do we you tariffs business? as the for we then longer think And term any the to see rates, helpful. Is margins, year. margin? think term absent great about the new should increase it's for longer in shipping gross Very contemplate a gross Okay. that about the XX.X% ceiling of

Taryn Miller

half we're with are on midpoint where consistent of at the second with half. in gross I half guidance, think in the first that we're our the pleased margins the first

called we expected at that range a at put of longer that's supply I we're and to that the SG&A as XX.X%, from XX% half, benefit reductions. I think the chain right you say of savings half. XX.X% range terms the on if that in that terms first right XX% the there in term, in think we're out those that terms and earlier, XX% in being, gross business is have in So that range. margins. the of still I in based what out now, targeting second see the we for looking would

Operator

question Kummetz next from Seaport comes The Mitch with Research.

Mitchel Kummetz

e-com was Chris, up if I said Saucony or XX%. I you think heard XX% that business over you correctly,

me know real it your to my can kind wholesale I'm retail have on how in wrong terms do you intel with you of and probably business? what e-com at constrained guess if the see brand sell through? correct the your But partners question sell-in. terms comparable So you're like seeing what in on you're of Or there. say that? wholesale kind do I Is But I is, performing? what you inventory is of much the about of

Christopher Hufnagel

we really manage into the -- to than was in anticipated. thought XX%. it how over said probably up Yes. could Saucony.com holes certainly better. We Mitch. by. sold question. very And have want have honestly, faster been year encouraged this we're I went XX which ], mindful inventory. because sort out Thanks, we in things quarter the have [ a we with Good on was assortment Yes. actually today of year-on-year, -- And

sort the given the of risk we held that ago, say And had. will and -- we all company of the continuing challenges a year I was opportunity hands where think some versus of inventory we've that we chase

has more wish that of inventory we're long. demand, we a been more in where a think, for it Saucony So core which We're by but we encouraged so progress to year better then I by that the of certainly little sell-throughs, encouraged there. not specifically business such a today chase wholesale that I business were place part specialty, is run than ago. And is. bit a had

by encouraged hearing delivers from a the we're channel. Again, something the sell-through we're reactions brand. and when that it's And strong. run are XXX-year-old over getting the when works clearly is I that feedback a specialty favorite. we're initial Saucony It deliver know innovation, we we because think rates

we're XX, in couple and So single about. weeks. XX, the of high Hurricane by sell-throughs last which better talked digit or Triumph sort encouraged I [indiscernible] we're sell-throughs first dropped seeing Guide of just month, XX

positive. turnaround I and still February today this I think from So I And there product perspective, I in on line. think the Saucony's then. its Saucony been the we're have obviously think elevate -- the about changes Saucony in was and of And the continues I bullish certainly prospects, I made throes to a we've talked call, said

one declaring is victory. No

to have but give where brand initial stealing path. from we right some I perspective stages We there a brand, a we're again, that to get place steps we're the we've us and about the initial early very the share thought want how taken we that brand, think, manage how on to

Mitchel Kummetz

year, lot on you more terms reads a And in kind of particularly then early of of back-to-school, for gearing your the done have already of assortment? for marketing around where any of this gone kind particularly portion back-to-school the South And back. Saucony, kids like lifestyle the have in

Jonathan Komp

certainly, I well there activations continuing, search done. just particularly search the couple as Saucony record of a perspective, other broad-based I to of sponsorship of I for we're the the we're But Saucony was expressions by in there. as track right and clubs Saucony, is and by. interest seeing we just XX-K, Saucony And the weeks U.K. of and in EMEA in Saucony, Tenke, happening I are school were London are remarks, thought I sort early a now, the XX-K, the ago, think Yes. fantastic. we of seeing sort who activations the mean encouraged report search around I sponsored anyone London interest from we've improvements, run to seeing back which we're X and this said of seeing Yes. you which than best covers prepared us, the the really in too think brand to Nothing in good is what's --

Mitchel Kummetz

question. last And then maybe

through just third the forward versus it On of maybe and chain order shift And your given wholesale is considerations? million. true to shift, was demand that inventory your ability of How $X constraints kind what's strong supply think the were of order some stay if just demand. kind quarter, I the much supply that a pulled to like of

Erinn Murphy

And million earlier Yes. had a supply working was we No, I think as that, we're to. in, orders I think originally earlier we've able to the to in it and to talked the $X strengthen as the shift than coming really about, than we that then execution expected. said, more we'd it been We've that be able Chris were been had ship our become, chain. that's to to really. We customer are anticipated as respond do able able that, to we

respond. I the So broader talking $X I our don't point mean in the about -- on terms of you're ability to million,

of earlier better. that of point hit really in would getting getting terms little chain. terms choppier probably say is in I we're environment Chris I a that think in, we're the though, supply

we're we're think in. looking the that execution I with So strength the market our overall to backdrop in balance

Operator

with The next Markets. from question Owens comes KeyBanc Capital Ashley

Ashley Owens

was of me. and led relative Flex on from Was flat single always today. the there for ago the can And expect out? from Merrell, play or help versus last So to XQ just guide results then One, just Study think a the few outlined looks any like given months digits. up you the expectations us seeing expectation plans unpack to it turning on versus be to point you're this low quarter the I X or body, the shifts could kind that

Taryn Miller

I roughly with approximately line in flat expectations the for in our team. SludyBetty of think Betty, the Sweaty quarter being was in the terms

e-com, while been think have has -- stores stores -- for they I and in a the the softer, broader e-com compensated U.K. terms little we've of seen that. the

and really when look Inflexigrowth. on talk broadly Merrell, about the plan. So for what at That line the QX take back I'd with -- I'll to the expected back SweatyBetty. it. I'd come step the regarding was we say in you It's a --

the Merrell. well I'd that across momentum that the out we're work And And we say out Saucony. But this in it seeing earlier, so but in called against we're executing we call momentum plan brands, was on talking laid and the about time as spent the February.

are that brands levels little little So on well we're coming our portfolio. we and in seeing really balance. a lower probably that and as new from products Inventories stock RECONNECT other momentum Saucony talked the X higher a healthier as about in inventory the than the those probably across

do in good about in have terms that set so And inflected that, we've cleaner to growth more work that of probably we I'd fourth Maryland with we think and as we're the Workspace. order as well But plans more momentum would the quarter. in seeing when to out up us for the it's the when do broadly say you inventories feel in more called on of across book work inventory, the the page that

Ashley Owens

Great. more. just one then And Okay.

just Merrell any that with to saw the out. to effect obviously. collaboration, more more specialty been has occasions? come product lifestyle expanding starting come new of beyond you and are the doing colorways pit with some intended So into learnings, Are year, see next we new early

Jonathan Komp

the rate this we're up, we question. sold I was critically the was out just line has of just Good well. Triumph by, out collection Yes. as Yes, made The XX collaboration We by drops in a the event think Saucony we're encouraged progress which TIPS around pair. a fantastic named last job. J which collaborations. those certainly, X-hour Pro the which Saucony some The sold year, of that more think year. grid again, and I the following about did of collaboration with year, We're that for fantastic, important. are done And to I'm encouraged minted doing we've minutes really launch

love, team. And and consumers' moments done. you Wolverine dropped collection screen -- of the sort They critically brand for on which So I a the and same build equally which thing a the is for is love, something and fantastic are whether great Grayson, great what a that brand, said consumer with or was radar gracing polarizing, with special time, Michigan collaboration. project, bidding are things brand year's brand We the course the make talk brand, those the And of the we shoes always was be for well. heat, collaboration can Merrell, brand can celebrating we very drove those be another trail attention, where X,XXX-mile extensions same Michigan-based Parks that with Merrell fantastic interest. It important. shoes then a the even that capture affinity loved. At did those tremendous which good about a has little just amount of it's in people both University great as now this of collaboration that

we're a because we able brands. great not these to And important as are building great things reason products, it's just a it's we manage them build to also what those consumers products again, to of pay So attention some being with doing. package and storytelling give

important things. all are those So

can excited us the about future, more of only where see go in we here. and that we're from You'll from

Operator

from We question will Jonathan Baird. our R.W. last take of Komp

Jonathan Komp

look any look forward, or but just might Hoping, directional as scenarios early, your curious, fourth you I a to as channel embedded be inflection other aspirational then, Taryn, year it's to the And growth little more just Chris, approaching know growth. are forward? quarter be give the you might in there next assumptions color willing already on Chris, targets you color revenue you

Christopher Hufnagel

Yes. Thanks, John.

material channel assumptions. no we're how thinking in think changes about I

right on we then I XXXX, what for go said our a as ago. do. and much little expectations we're what year an were out the Taryn doing sort turnaround. we're it And very we of of think set well, full that plan and bit in plan the part talked to going about of ambitious sort Terrence now We

going changes QX U.S. material I about that time, wholesale pipeline. XXXX, generate strength focused about and at as product as now, really to as QX. And the well both no and are heat in there's continuing same So innovation brand domestically and think very the that to go, on that we're right trying the in

too, XXXX in the have and a certainly then go encouraged seen by encouraged reactions We the brand here But seen of is order by -- same actually And different would seen just underscore. a is So based little an when next bit months. those and I'm on to lot be and the of some a say perspective. for and I different, a that we coming I little do. some region innovation will wholesale at we've as book placed. But time, window handful every the every of of have by together we've can't still order bit the work encouraged well from are channel standpoint orders that the from sell-throughs

the happy we've No keep year us and only one the driving over We're forward the really the work stand. to for is given with has driving growth. keep victory. But declaring done where past company privilege we

So we -- are again, while Difficulty] we're... [Technical

Jonathan Komp

I but also think think last I we answered disconnected Taryn a , got follow-up. John's there's question unless

we're Operator, I think good. Okay.

Operator

now over additional or period. for remarks. question-and-answer any All our conclude does I right. will back presenters to call turn closing This the today's

Christopher Hufnagel

Thanks us. Look we look to and very speaking everyone. the We you to to follow-ups. joining for in forward be appreciate safe. Be November. questions, the forward well, Thanks, much. Thanks

Operator

you Thank program. participation. does This for your today's conclude

any time. You may disconnect at

Wolverine World Wide (WWW) 7 Aug 242024 Q2 Earnings call transcript