Wolverine World Wide falls after disappointing outlook, CEO transition (NYSE:WWW)

Wolverine World Wide (NYSE:WWW) fell ~23% Thursday pre-market after the footwear, apparel and accessories company said its H2 outlook was disappointing and announced CEO transition.

Brendan Hoffman is no longer with the company, and President Christopher Hufnagel has been appointed president and CEO, effective immediately.

Hufnagel is also appointed a board member.

The company posted Q2 non-GAAP EPS of $0.19 in-line, and revenue of $589.1M (-17.4% Y/Y) beats by $6.13M.

Active Group revenue was down 10.5% on a yearly basis to $383.3M, while Work Group fell 15.6% to $117.8M. Lifestyle Group revenue declined by 38.2% to $74.9M. Other segment revenue decreased by 47% to $13.1M.

FY23 revenue from the ongoing business is expected to be in the range of $2.26B to $2.28B, a decline of ~10.7% to 10.0% Y/Y. The consensus revenue estimate is $2.51B.

Gross margin is expected to be ~39.4% and adjusted gross margin is expected to be ~40.0%. Operating margin is expected to be ~4.8%, and adjusted operating margin is expected to be ~5.0%.

GAAP EPS is expected to be between $0.43 to $0.53, and non-GAAP EPS is expected to be between $0.45 to $0.55, vs. consensus of $1.47.

“Our second half outlook, as reflected in our updated annual guidance, is disappointing but we are confident that the work we are undertaking will drive significant profit improvement in 2024 and quickly set a strong growth foundation for the company,” Hufnagel said.