WWW Q4 Earnings Beat Estimates, Work Group Revenues Rise Y/Y

Core Insights - Wolverine World Wide, Inc. reported fourth-quarter 2024 results with earnings and revenues exceeding Zacks Consensus Estimates, indicating a return to growth despite a revenue decline year over year [1][2] Financial Performance - Adjusted earnings were 42 cents per share, surpassing the Zacks Consensus Estimate of 41 cents, and a significant improvement from an adjusted loss of 26 cents in the prior-year quarter [4] - Total revenues were $494.7 million, down 6.1% year over year, but above the Zacks Consensus Estimate of $485 million [5] - Ongoing revenues increased by 3% on a reported basis, with direct-to-consumer revenues at $151.7 million, down 7% year over year [5] Segment Performance - Active Group revenues decreased by 2.8% year over year to $331.7 million, while Work Group revenues increased by 20.6% to $151.1 million [6] - Revenues for the Other segment plummeted 80.2% year over year to $11.9 million, but still exceeded the consensus estimate [6] Brand Performance - Merrell's revenues rose 1% to $163.4 million, while Saucony's revenues fell 5.3% to $99.6 million [7] - Wolverine's revenues improved by 20.5% to $62.4 million, and Sweaty Betty's revenues decreased by 5.9% to $63.4 million [7] Margins and Costs - Adjusted gross profit was $217.7 million, up 19.9% year over year, with an adjusted gross margin increase of 620 basis points to 44% [8] - Adjusted operating costs decreased by 14.6% to $167 million, with a percentage of revenues decline of 330 basis points to 33.8% [8] Balance Sheet and Financial Health - The company ended the quarter with cash and cash equivalents of $152.1 million and long-term debt of $568 million [10] - Net debt decreased by $246 million year over year to $496 million, and inventory was down 35.6% to $241 million [10] 2025 Outlook - For fiscal 2025, Wolverine expects revenues between $1.80 billion and $1.83 billion, indicating year-over-year growth of 2.5-4.3% [11] - Projected gross margin is 45.5%, with an expected operating margin of 7.7% and adjusted operating margin of 8.3% [11] - Earnings per share are anticipated to be between 95 cents and $1.10, with adjusted EPS between $1.05 and $1.20 [12]