Wolverine World Wide, Inc. (WWW - Free Report) continued with its solid performance in fourth-quarter 2021 despite supply-chain challenges. While the top line beat the Zacks Consensus Estimate, the bottom line met the same. Remarkably, revenues and earnings per share increased meaningfully from the year-ago period. A robust portfolio of iconic brands coupled with operational strategies contributed to the company’s performance. The recently acquired women’s activewear brand Sweaty Betty also fueled growth.
Q4 Insights
Wolverine posted fourth-quarter adjusted earnings of 41 cents a share that increased significantly from 21 cents earned in the year-ago quarter, thanks to higher sales and margin expansion. On a constant-currency basis, adjusted earnings came in at 39 cents a share. Excluding the Sweaty Betty, adjusted earnings were 31 cents a share.
Revenues of $635.6 million surpassed the Zacks Consensus Estimate of $629.4 million and increased 24.7% year over year, courtesy of solid consumer demand. On a constant currency basis, revenues grew 24.6%. Sweaty Betty, the newest addition to the company’s portfolio of brands, contributed more than $75 million of revenues in the quarter under discussion. Excluding Sweaty Betty, revenues increased 9.4% year over year.
We note that Wolverine Michigan Group’s revenues rose 7.9% year over year to $322 million, while Wolverine Boston Group’s revenues grew 10.4% to $218.1 million. Other revenues jumped to $95.5 million from $13.5 million in the year-ago period.
Including Sweaty Betty, direct-to-consumer (DTC) revenues advanced 60% year over year and represented 35% of total revenues. DTC e-commerce revenues surged 58.3%, while DTC store revenues jumped 68%. Excluding Sweaty Betty, DTC revenues increased 12%, reflecting e-commerce growth of 12.7% and store revenue growth of 11%.
Wolverine's Merrell brand registered low single-digit decline in revenues. However, the brand’s lifestyle category grew mid-single-digits and the work category increased by roughly 30%. Merrell’s DTC business rose about 10% compared with the year-ago quarter. Merrell's global business remains fundamentally sound, with a strong order book entering 2022.
The company’s Saucony brand registered revenue growth of approximately 25%. A relatively strong inventory position helped mitigate the impact of Vietnam factory closures. Saucony continues to increase its DTC mix, with e-commerce revenues surging roughly 38% from the prior-year period.
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Wolverine World Wide, Inc. (WWW - Free Report) continued with its solid performance in fourth-quarter 2021 despite supply-chain challenges. While the top line beat the Zacks Consensus Estimate, the bottom line met the same. Remarkably, revenues and earnings per share increased meaningfully from the year-ago period. A robust portfolio of iconic brands coupled with operational strategies contributed to the company’s performance. The recently acquired women’s activewear brand Sweaty Betty also fueled growth.
Q4 Insights
Wolverine posted fourth-quarter adjusted earnings of 41 cents a share that increased significantly from 21 cents earned in the year-ago quarter, thanks to higher sales and margin expansion. On a constant-currency basis, adjusted earnings came in at 39 cents a share. Excluding the Sweaty Betty, adjusted earnings were 31 cents a share.
Revenues of $635.6 million surpassed the Zacks Consensus Estimate of $629.4 million and increased 24.7% year over year, courtesy of solid consumer demand. On a constant currency basis, revenues grew 24.6%. Sweaty Betty, the newest addition to the company’s portfolio of brands, contributed more than $75 million of revenues in the quarter under discussion. Excluding Sweaty Betty, revenues increased 9.4% year over year.
We note that Wolverine Michigan Group’s revenues rose 7.9% year over year to $322 million, while Wolverine Boston Group’s revenues grew 10.4% to $218.1 million. Other revenues jumped to $95.5 million from $13.5 million in the year-ago period.
Including Sweaty Betty, direct-to-consumer (DTC) revenues advanced 60% year over year and represented 35% of total revenues. DTC e-commerce revenues surged 58.3%, while DTC store revenues jumped 68%. Excluding Sweaty Betty, DTC revenues increased 12%, reflecting e-commerce growth of 12.7% and store revenue growth of 11%.
Wolverine's Merrell brand registered low single-digit decline in revenues. However, the brand’s lifestyle category grew mid-single-digits and the work category increased by roughly 30%. Merrell’s DTC business rose about 10% compared with the year-ago quarter. Merrell's global business remains fundamentally sound, with a strong order book entering 2022.
The company’s Saucony brand registered revenue growth of approximately 25%. A relatively strong inventory position helped mitigate the impact of Vietnam factory closures. Saucony continues to increase its DTC mix, with e-commerce revenues surging roughly 38% from the prior-year period.
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