Financial Data and Key Metrics Changes - Revenue for the first quarter of fiscal 2025 was $412 million, exceeding expectations of approximately $395 million, with a year-over-year growth of over 5% on an ongoing basis and nearly 7% on a constant currency basis [34][7] - Adjusted gross margin increased to 47.3%, up 80 basis points compared to the previous year, driven by a healthier sales mix and lower promotional activity [37] - Adjusted diluted earnings per share improved from $0.05 in Q1 2024 to $0.18 in Q1 2025, surpassing the outlook of $0.10 [37] Business Line Data and Key Metrics Changes - Saucony achieved a revenue growth of 30% year-over-year in Q1, with strong contributions from all regions and channels, particularly in North America [8][35] - Merrell's revenue grew by 13% compared to Q1 last year, with significant contributions from Asia Pacific and EMEA [14][35] - Sweaty Betty's revenue declined by 16% in Q1, aligning with expectations, but showed improvement in gross margin due to a better mix of full-price sales [35][36] Market Data and Key Metrics Changes - The company's international business grew mid-teens year-over-year in Q1, indicating strong performance outside the U.S. [30] - U.S. retail sell-through remained strong throughout April, with similar positive reports from international regions [26][27] Company Strategy and Development Direction - The company is focused on transforming its culture and building new capabilities to compete effectively in the market [24] - A strategic plan is in place to mitigate the impact of tariffs, including diversifying the supply chain and implementing price adjustments [31][32] - The company aims to enhance brand positioning and reduce promotional activities to improve long-term profitability [22][80] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's prospects despite uncertainties in the marketplace, particularly regarding tariffs and consumer sentiment [25][26] - The decision to withdraw full-year guidance for 2025 was made due to the dynamic nature of the operating environment [38] - The company remains committed to investing in brand momentum while managing costs effectively [41][42] Other Important Information - The company has initiated a search for new leadership in the work group as part of its ongoing restructuring efforts [21] - Significant investments are planned for Saucony, marking the largest investment year since its acquisition [14] Q&A Session Summary Question: Insights on the order book and momentum for Saucony and Merrell - Management indicated that sourcing diversification efforts have accelerated, with expectations of sourcing from China dropping below 10% this year [54] - The order book remains strong, and there is confidence in the momentum for 2025 [55] Question: Details on price increases to mitigate tariff impacts - Price increases were implemented strategically across brands, with specific examples provided for Saucony and Merrell [64][65] - These increases are not expected to fully offset tariff impacts, necessitating additional measures [66] Question: Demand planning for the back half of the year - The company has established a new integrated business planning group to better manage inventory and demand signals [75] - There is a cautious approach to inventory management based on brand momentum and market conditions [76] Question: Promotional activities and their impact on Merrell - Management acknowledged the need to reduce promotional activities and improve gross margins, indicating a transition period [80] - The increase in Merrell's revenue was attributed to improved sell-through and a cleaner inventory position [81] Question: Breakdown of international business performance - Insights into regional revenue and unit dispersion were provided, with a focus on the significant contribution from international markets [86]

Company Performance - Wolverine World Wide (WWW) reported quarterly earnings of $0.18 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, and showing an increase from $0.05 per share a year ago, representing an earnings surprise of 63.64% [1] - The company posted revenues of $412.3 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.29% and increasing from $394.9 million year-over-year [2] - Over the last four quarters, Wolverine has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Outlook - Wolverine shares have declined approximately 33.3% since the beginning of the year, in contrast to the S&P 500's decline of 4.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.24 on revenues of $443.98 million, and for the current fiscal year, it is $1.09 on revenues of $1.81 billion [7] Industry Context - The Shoes and Retail Apparel industry, to which Wolverine belongs, is currently ranked in the bottom 16% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Wolverine's stock performance [5]

Financial Performance - Q1 2025 - Adjusted revenue reached $412 million, a 5.5% year-over-year increase, or 6.7% on a constant currency basis[13, 42] - Adjusted gross margin improved to 47.3%, an increase of 80 basis points year-over-year[13, 42] - Adjusted EPS increased significantly by 260% year-over-year to $0.18, or 300% on a constant currency basis[13, 42] - Net debt decreased by $83 million compared to the prior year, reaching $604 million[49, 50] Full Year 2024 Performance - Adjusted revenue for FY24 was $1.75 billion[4] - Adjusted EPS for FY24 was $0.91, a 507% increase compared to FY23[4, 13] - Net debt reduced by $246 million in 2024[13] - Inventory lowered by $133 million in 2024[13] Segment Performance - Q1 2025 - Active Group revenue increased by 12.7% year-over-year to $327 million[44] - Work Group revenue decreased by 17% year-over-year to $75 million[46] Future Outlook - The company withdrew its 2025 guidance due to uncertainty around tariffs and related macro-economic conditions[52] - The company expects Q2 2025 revenue to be in the range of $440 million to $450 million, an increase of approximately 4.9% at the mid-point[53] - The company expects Q2 2025 adjusted operating margin to expand approximately 90 basis points year-over-year[53]

Revenue Performance - Total revenue for Q1 2025 was $412.3 million, representing a year-over-year increase of 4.4% compared to $394.9 million in Q1 2024[5] - Active Group revenue increased by 12.7% to $326.7 million, while Work Group revenue decreased by 17.0% to $74.8 million[5] - The company expects Q2 2025 revenue to be approximately $440 million to $450 million, indicating growth of approximately 3.7% to 6.0% compared to Q2 2024[11] - Total revenue for Q1 2025 was $412.3 million, representing a 4.4% increase from $394.9 million in Q1 2024[25] - The Active Group revenue increased by 12.7% to $330.2 million in Q1 2025, while the Work Group revenue decreased by 17.0% to $74.8 million[25] Profitability - Gross margin improved to 47.3%, up from 45.9% in the previous year, reflecting a 140 basis point increase[5] - Diluted earnings per share for Q1 2025 was $0.13, a significant improvement from a loss of $0.19 in Q1 2024, marking a 168.4% increase[5] - Net earnings for Q1 2025 were $12.2 million, a significant improvement compared to a net loss of $13.7 million in Q1 2024[23] - Operating profit for Q1 2025 was $19.7 million, resulting in an operating margin of 4.8%, compared to an operating loss of $3.1 million in Q1 2024[32] - The adjusted diluted earnings per share for Q2 2025 is projected to be in the range of $0.19 to $0.24[11] Inventory and Debt Management - Inventory at the end of Q1 2025 was $271 million, down $84 million or approximately 23.6% compared to the prior year[6] - Net debt decreased to $604 million, down $83 million or approximately 12.1% year-over-year[6] Guidance and Economic Conditions - The company has withdrawn its full-year 2025 guidance due to uncertainty around tariffs and macro-economic conditions[8] - The company expects Q2 2025 revenue guidance of $440 - $450 million, with dilutive EPS guidance of $0.17 - $0.22[36] - Adjusted operating margin for Q2 2025 is projected to be 7.2%, up from a GAAP basis of 6.7%[36] Brand Performance - Merrell and Saucony brands drove growth with revenue increases of 13.2% and 29.6%, respectively[5] Asset and Liability Management - Cash and cash equivalents decreased to $106.5 million in Q1 2025 from $169.7 million in Q1 2024[23] - Total assets decreased to $1,684.5 million in Q1 2025 from $1,853.0 million in Q1 2024[21] - Total current liabilities decreased to $551.1 million in Q1 2025 from $730.3 million in Q1 2024[21]

Group 1 - Analysts project Wolverine World Wide (WWW) will announce quarterly earnings of $0.11 per share, a 120% increase year over year [1] - Revenues are expected to reach $395.35 million, reflecting a 0.1% increase from the same quarter last year [1] - The consensus EPS estimate has been revised downward by 9.4% in the past 30 days, indicating a reassessment by covering analysts [2] Group 2 - The average prediction for 'Revenue- Active Group' is $298.16 million, showing a year-over-year change of +2.9% [5] - 'Revenue- Other' is estimated to reach $13.10 million, indicating a decline of -12.7% from the prior-year quarter [5] - 'Revenue- Work Group' is expected to be $84.09 million, reflecting a year-over-year change of -6.7% [5] Group 3 - Wolverine shares have increased by +27.8% in the past month, outperforming the Zacks S&P 500 composite's +11.5% [6] - Wolverine holds a Zacks Rank 4 (Sell), suggesting it is expected to underperform the overall market in the near term [6]

Company Overview - Wolverine World Wide (WWW) is anticipated to report a year-over-year increase in earnings, with a projected earnings per share (EPS) of $0.16, reflecting a significant increase of +220% compared to the previous year [3] - The expected revenue for the quarter is $395.35 million, which represents a slight increase of 0.1% from the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for release on May 8, 2025, and could influence the stock price depending on whether the actual results exceed or fall short of expectations [2] - The consensus EPS estimate has been revised down by 6.54% over the last 30 days, indicating a more cautious outlook from analysts [4] Earnings Surprise Prediction - The Zacks Earnings ESP (Expected Surprise Prediction) model indicates that the Most Accurate Estimate for Wolverine is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -17.46% [10][11] - This negative Earnings ESP, combined with a Zacks Rank of 5 (Strong Sell), suggests a challenging environment for predicting an earnings beat [11] Historical Performance - In the last reported quarter, Wolverine exceeded the consensus EPS estimate by delivering earnings of $0.42 per share against an expectation of $0.41, resulting in a surprise of +2.44% [12] - Over the past four quarters, the company has beaten consensus EPS estimates three times, indicating some level of reliability in its earnings performance [13] Industry Comparison - In the broader context of the Zacks Shoes and Retail Apparel industry, Steven Madden (SHOO) is expected to report earnings of $0.46 per share, reflecting a year-over-year decline of -29.2% [17] - Steven Madden's revenue is projected to be $561.97 million, which is an increase of 1.7% from the previous year [17] - Despite a recent downward revision of 6.6% in the consensus EPS estimate for Steven Madden, it has a positive Earnings ESP of 9.29%, although it carries a Zacks Rank of 4 (Sell), complicating predictions for an earnings beat [18]

Core Insights - Saucony has launched the Saucony SILO collection, which merges high-fashion influences with the brand's heritage and technology, aiming to redefine luxury sneakers [1][2] - The collection features five key silhouettes, emphasizing both modern innovation and comfort, appealing to today's consumers [2][3] Group 1: Product Details - The SS25 collection includes five silhouettes: Grid X Ultra S, 586i S, Gripper S, Kinvara 1 S, and Endorphin Elite 2 S, showcasing advanced material innovation and performance technology [2] - The Grid X Ultra S is highlighted as the best expression of the Saucony SILO, combining the latest technology with a luxurious approach [3] Group 2: Brand Positioning - Saucony aims to create a future-focused experience that resonates with consumers who value innovation and sophisticated styling [2] - The collection was initially previewed at Paris Fashion Week in January 2025, indicating a strategic alignment with high-fashion events [2] Group 3: Launch Information - The Saucony SILO collection will be available globally on April 17, 2025, at select retailers and online [1][3]

Core Insights - Saucony has launched the Saucony SILO collection, which merges high-fashion influences with the brand's heritage and technology, aiming to redefine luxury sneakers [1][2] - The collection features five key silhouettes, emphasizing modern innovation and comfort alongside sophisticated styling [2][3] - The official global launch date for the SS25 collection is April 17, 2025, available at select retailers and online [3] Company Overview - Saucony is recognized as a leading global performance running brand, part of Wolverine World Wide, Inc., and has a history dating back to 1898 [4] - The brand is known for its innovative technologies, including PWRRUN™ PB, PWRRUN+™, and SPEEDROLL™, which enhance both technical and lifestyle footwear [4] - Saucony aims to inspire individuals through running culture and self-expression, highlighting its commitment to innovation and style [4]

Core Insights - Saucony has announced its 2025 North American roster of professional runners, adding 11 new elite athletes to its existing team, which includes nine current athletes [2][3] - The brand emphasizes its commitment to fostering talent and community in running, aligning with its ethos of "Run as One" [1][5] - The integration of new athletes into product development aims to enhance performance and innovation, benefiting both elite and everyday runners [4][2] Company Strategy - Saucony's approach involves close collaboration with athletes in the product development process, ensuring high performance standards [4] - The brand's focus on community and connection among runners is highlighted as a key aspect of its mission [5] Market Context - The announcement coincides with the growing excitement for the 2028 Olympics in Los Angeles, which is expected to inspire a new generation of runners [5] - Saucony aims to leverage this momentum to strengthen its brand presence and support for athletes [5] Brand Background - Founded in 1898, Saucony is recognized as a leading global performance running brand, known for its innovative technologies and commitment to running culture [7]

Core Insights - Wolverine has partnered with award-winning country musician Jordan Davis to celebrate the blue-collar mindset and promote the skilled trades industry [2][3][6] - The partnership aims to honor the legacy of hard work and craftsmanship, reflecting both Wolverine's and Davis's values [4][5][6] Company Overview - Wolverine is a 142-year-old boot and clothing company dedicated to serving hardworking individuals globally, emphasizing durable craftsmanship and high-quality materials [7] - The company has contributed over $2 million through Project Bootstrap to support skilled trades organizations [7] Partnership Details - The collaboration includes the launch of the "Jordan Davis Picks" collection featuring Davis's favorite Wolverine products, available on Wolverine's website and select retailers [5] - A new custom collection is set to launch in the fall, along with events aimed at giving back to the skilled trades community [5] Artist Background - Jordan Davis is a multi-platinum singer/songwriter with a successful career, including multiple 1 hits and award nominations [8][9] - His background in a blue-collar family aligns with Wolverine's brand ethos, showcasing the importance of hard work and dedication [4][8]