The company’s consolidated revenue saw a 2.5 per cent decline to $599.4 million for Q1 FY23, compared to the prior year, and a 0.5 per cent decrease on a constant currency basis. However, the ongoing business generated $580.4 million in revenue, reflecting a constant currency growth of 2.9 per cent, Wolverine Worldwide said in its financial results for the first quarter ending April 1, 2023.
Wolverine Worldwide saw a 12.6 per cent YoY surge to $249.7 million in its international business in Q1 FY23, while DTC revenue dropped 7.7 per cent YoY to $124.9 million.
Consolidated revenue declined 2.5 per cent to $599.4 million, but ongoing business revenue grew 2.9 per cent on a constant currency basis.
Gross margin fell to 39.4 per cent in Q1 FY23.
Gross margin for Q1 FY23 was 39.4 per cent, down from 42.5 per cent in the prior year. This decrease can be attributed to the sale of higher-cost inventory due to transitory supply chain costs from 2022, the acceleration of end-of-life inventory liquidation, and increased promotions.
Selling, general, and administrative expenses amounted to $191 million. Adjusted selling, general, and administrative expenses of $202.7 million, or 34.9 per cent of adjusted revenue, were 45 basis points lower than the previous year.
Inventory at the end of the quarter totalled $725.9 million, excluding $11.2 million for the held-for-sale business. This marked a decrease of approximately $19 million sequentially from the fourth quarter of fiscal 2022.
“We are pleased with delivering first quarter results in line with guidance which included 15% constant currency revenue growth from our Active Group,” said Brendan Hoffman, president and chief executive officer. “Earnings results slightly exceeded our expectations and we made progress on reducing inventory. Our first quarter performance and initiatives we have in place position us to reaffirm our full-year outlook despite a challenging environment.”
Fibre2Fashion News Desk (DP)
