Wolverine World Wide (WWW) 12 May 212021 Q1 Earnings call transcript

Greetings, and welcome to Wolverine Worldwide, Inc.

First Quarter Fiscal 2021 Results Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. pleasure and Brett Corporate my of Vice now Relations Investor Strategy. is to Parent, introduce, President It Thank you.

You may begin.

Good morning, call. conference quarter first and welcome to our XXXX

and On this Stornant, first release wolverineworldwide.com. our Chairman be Vice our President for Krueger, can Brendan are the Financial quarter our announced Senior the is Officer. our corporate Chief many Executive results Earlier Hoffman, Mike The Chief news we on available Officer; our at and President; and call today morning, XXXX. sites and viewed on website Blake financial

and expectations, other attached tables severance and exchange If news I’d during the of body morning’s of statements you costs These the made also you other cost describing would reconciled costs, include prefer net plans, the related outlook release. press during call projections, fiscal changes. that of to such foreign expenses, predictions costs, as related Company’s under made are to directly, credit This environmental those and including non-GAAP have today’s laws. adjusts, comments a and loss today’s copy year the disclosures, regarding XXXX earnings forward-looking which call to and were air recoveries, within release for remind conference disclosures costs and of statements to Allison Company’s the release like related XXX-XXX-XXXX. call rate sent COVID-XX for securities the pandemic, example, Malkin at freight expenses, the please impact you for U.S.

the SEC press now and actual to from like the I’d a the could that over are important caution we of number that said, factors those forward-looking results releases. filings Blake must Company’s risk These differ cause being in result, factors to a turn our Krueger. are statements. to identified materially call in With you described in As that there

per this growing the well. is Brett. and I safe hope start Good results. way on us. Earlier strong our digital deliver thanks to XX% $XXX morning, a first E-commerce million year. as of of quarter the the everyone, quarter during continued joining revenue we adjusted everyone $X.XX, call approximately Thanks, share earnings morning, global the to led reported and for and

expectations XX% Saucony Our largest their nearly versus XX% up up XX%. up XX% exceeded the company’s brands brands beat QX and with with quarter. XX% growing region over Merrell revenue two international nearly over every year-over-year, Both were levels XXXX XXXX. was in easily up business The Saucony,

outpacing is channels DTC wholesale Our are very book the and market healthy. order our

rest very As of we the we’ve the at brands strength our for the this year demand outlook. year, and is on raised our demand looked full of robust strong guidance and

additional outlook today’s financial financial update detail call, I’ll and on our Stornant QX providing year. insight results start For Mike our then the for will by And our on you performance. some

revenue and Finally, up Brendan basis. the I priority reported before a basis and up a a conclude. reported Wolverine up strategic basis In on was Hoffman revenue XX.X% Group on quarter, XX.X% share on will the basis. The first was a Michigan growth Group latest Wolverine up constant currency our Boston constant currency the XX.X% X.X% on on

margin by revenue trend-right the compelling new impactful Saucony.com digital and superior The to for for models with brand. what Saucony. product North regions growth year-over-year. growth road lifestyle increased EMA. franchises. QX Conveyor drove growth driven with launch The on the focus Saucony’s will the nearly start running revenue XX anticipate All of new be a technical doubling great more and design led the basis launches. at with XX% and in storytelling guide remain product momentum, America now brand over brands’ doubled the A product category global by of innovation performance than nearly XXX% QX. Product Saucony by expanded and delivered starting both Guide and to in grew several strong key nearly of collections me core points operating we and Let spectacular XX year biggest delivering significant marketplace. its XXX

and colors also the received launch freshness excellent business drove growth Endorphin award. innovative Editor’s New and the packs XX, series. Choice running with World grew its the which Runner’s for Saucony also coveted collection of the trail Peregrine

on build new end with media Jazz QX. Europe with Court, with with plastic in natural product. sport. elevated of to in and driving launched positioning the category grew the The pinnacle its and materials immediately made product sneaker to and trend-right on Originals, enthusiasts its momentum substantial at also the hub continues product the a saucony.com. new brand lever zero New and both top sneaker the digits technical Italian XXX% fueling social launches and selling Saucony many brands success brands to in business double are QX and becoming brand’s existing design marketing the The product runners lifestyle heritage product

Saucony last new Looking are XX both weeks product Freedom new few ahead, Ride will and of and X to a off at introduction start. launches launched the fast steady continue within the

of to quickly Over the pro, the shift, will in of several both the offering. become across also three lifestyle a XX and award performance the its rollout brand business the has months, to one the introduce The which Saucony its also the the next Endorphin the The follow-up accelerate collection, new and predecessor. generation will of speed next Triumph brand models winning continues all the franchises. momentum largest

also greater its delivered North increases grew with power merrell.com especially inclusive including celebrating quarter. commitment everyone. DTC campaign digits stores comping strong and Moving than by Moc Future brand XXth classic to to we XX the Hydro The with growth up its which the significant leverage announced start sell Moc XX%. in the Moab Moab including its new Merrell off with on selling anniversary quarter, sharing the the double kicked brand’s the America new collections, of and outdoors throughout launched quickly to Hydro and franchise very products exceeding for overall. as nearly well-positioned and the XXXX Moab Moc, and growth more for up approximately Merrell. the on-off to outdoors and steady well exceptionally brand quarter. across of the merrell.com to a Merrell approximately grew franchises, the performance by amplifying XXX% Revenue accessibility In at the to continued continue the perform Merrell the Brothers expect All XX% new lifestyle XXX,XXX of EMA. Big partnership continues through Merrell;s hiker, forward. the with QX businesses product America innovation quarter plans is the going offerings newer growth grew driven strong new performance led Moab, and the youth. franchises. nearly Nova year-over-year. well continue regions for to in with Speed Merrell as the in cultivating the focus a continue Jungle Jungle in Merrell Big delivering Merrell will on of nearly the in advance Sisters by and drive Antora to faster has Light helping of to brand’s as Moc, number lifestyle and its runners aiming for provide double-digit Moc tripled The accelerate remainder Building success XX% to established footwear grew introduction. expectations out Hut X one do performance vision all both trail product world’s the of on The business as of to brand trail. year. stream the the and XX% of the lighter easy X scheduled footwear trend performance well outdoor unmatched

Our and which Cat with Wolverine led QX, in strong Footwear our nearly from couple XX% our represented delivered work almost significant smaller up revenue over business, growth up contributions a of XX% brands. of by also XX%

boot the category, it’s market consumers the share trending consistent is company an are time. which with in been We and leader for currently the performer work important over U.S.

in expect in category accelerate We this growth QX. to

Sperry. than QX. which compared prior continued Revenue into expected is approximately XX% sequential million despite was of revenue, a now QX, down to more led $XX in improvement to quarters, Turning

business During basis points the up expanding Sperry nearly than margin was brands sperry.com gross The quarter, grew very with full and QX. in XXX remains stores more price XX% XX%. healthy

back entertainment the of capitalize and seasonal including build the the new year. also the on the growth categories, float for easy this with Sperry in Netflix path the shoe hit Float fun younger later trend John of and collaborations the to collection on-off and unique Popsicle affordable product the Sperry collection pop drops, fashion, of icon, series, Banks, to of for product The Good Blazers. product of the best-selling the Sperry Legend, several fall. through Humor, year It’s quarter to the boat collection consumers across of and with the end remainder elasticity on launch energy Rowing the Outer success and this is on version the including culture capsules, Moc-Sider genders, sperry.com’s quickly and launched possesses Rebecca expects drive summer, brand ahead, Ice-cream injected years. throughout and plans new float Looking price [indiscernible] several leveraging points. Minkoff, at introduction with became

insight review I quarter Before going regarding results Mike? it to in to more growth off financial to some priorities, detail. hand and additional our first share Brendan strategic the I’m Mike

us. Thanks, you Blake, for and joining thanks to all of

outlook performance, some Let XXXX. Company’s insight me and for quarter our start by providing the additional on improved detail on first then

revenue of $XXXmillion compared approximately to year. last quarter First XX% of growth represents

XX.X%, digital incentive versus XX%. XXX as diluted was over expense costs. partial Net tax $X.XX margin last basis by were to reflect costs. ongoing growth Adjusted defense year-over-year due share prior meaningful expansion expanding wholesale additional innovative the XXX year This As the the revenue, strong about DTC $XXX.X of administrative more of of year million million more COVID interest diluted year strength Blake up in marketing improved and related and $X.X points $X.XX rate per e-commerce elements the points agenda achieved margin normalized on $X Adjusted improvement shift legacy despite Adjusted of operating million investment and the of last our the basis quarter or result earnings and performance global were to Reported effective customer our delivered related gross growth higher a legal pointed to and and adjusted digital selling, mix claims than leverage. favorable a last excellent shipments quarter. compensation specific to e-commerce a of operating share $X.XX the product was certain litigation, year, to in settlement of general into due out, earnings in QX our was compared product growth second XX.X%, primarily and million $XX offerings. costs insurance healthy of platforms an year. most continued expenses per was mix. of versus prior offset $X.XX

balance inventory Let the me was of approximately end XX% down year-over-year. now shift the to quarter, At sheet. the

Our chain global sourcing team supply our continues headwinds to impacting the to adjust industry.

allowing less position we in orders inventory year from million of QX. the revolver the nearly Our from with In to nicely approximately the on million hand $XX.X quarter improved of $X.X flow including of and quarter, cash liquidity of activities. us finished total the all company fill capacity. QX cash $XXX million The to second of and QX, million debt $XXX into $XXX prior that compared has operating slipped billion, generated nearly

Our at a will outlook improved I ending on to times. quarter provide bank now continued defined X.X details ratio the XXXX. leverage for our improve, low

annual improving since our assumptions shared remained with in we trends February. guidance As business in the have very we our revenue offered encouraging

Our order strong. remained wholesale book

growth is our position business well. DXC continues improve. to strong regions and International Our have returned to inventory performing

this invest business and future manage of confidence we growth. in with us as provides All heightened level of the a

meaningful XXXX the are XX% supply levels the in guidance adjusted a from As updated be included continue the the unpredictable we delays, costs $X.XX of enviable growth $X.XX related share nicely a the of our the $X.XX. result, of the $X.XX near-term demand Growth chain compared will revenue. billion in in to reported company in above the to service is exceeds outlook In the diluted from in billion. reported COVID-XX seeing per share prior range of of a very per ensure our airfreight an this range to to our fiscal invest normal year. These the for in ability face to original We brands. of remainder and in XXXX diluted to position of XXXX are $X.XX in XX% high and the is to The drive in to range continue range, year. company business. now results million to airfreight expects the to revenue invest momentum our our for $XX adjusted At the expect will strong earnings $X.X of company earnings and now end raise to

it changing continues handing share delivering drivers. to Before to us, to hand results which thank adapt over environment strategic over on going team, to like to it to With around while shareholders. would for I our Brendan, Brendan? briefly our insight excellent our that, additional the fast growth to Brendan I’m

Mike. Thanks,

the consumers as favored agenda execute the and product across brands the well performance we running power With and in are As our by and two-thirds macro of lifestyle global of is we in emerged our growth evident pandemic, positioned trends. the from brands categories outdoor our portfolio. roughly business work, our and relevance oriented

key through positioning unique of brand In growth portfolio, our three to momentum is addition our global agenda strong driving pillars. the

Moab resonating Collections Saucony’s XX stories and consumers, new other new including several Merrell’s and well brands Float, new with are Flight, Moab the marketing and Sperry’s Endorphin launches. product Speed First, and Guide

Our and developing brands insights, investments invaluable. center our Intel testing. big, product advanced and collections on focused innovation impactful on of excellence are And in proving innovative are consumer trend concepts and based recent

testing and coming technologies, optimize are our improve capabilities and to more in XXXX. user innovations our and our increased is our business to of anticipate and the conversion a also $XXX consumers, e-commerce drive which digital QX, the additional mobile in year this and investments in engage exceeding site richer assets partners launching helping early digital drive as we through better stage million of fuel to at continues towards distribution customers. we including goal global leveraged In investments merchandising online expectations wholesale traffic, our Second, investments track These In ongoing revenue we digital to Merrell and marketing content experiences. storytelling brands.com the app. several learning to new bold and integrating months, growth,

substantial We excited are the about remains for our that runway digital business.

quickly every very has our recovered from last growth. with strong Finally, year shutdown, business international QX region delivering

upper significant As Blake Saucony biggest targeting Italy marketing investments design opportunity brand. EMEA hub are business distribution our Merrell continues our JV and outperform and for a tier Saucony in pay two drive for to brands and the dividends. helping mentioned, our its and product fastest beginning growing to Overall are our

growth and With agenda about today’s not that, profitable turn growth our be our are remarks. is the brands and to aligned opportunities. Our well and fueling marketplace our biggest I consumer could excited XXXX and trends over beyond. it will most global to I conclude future more back Blake to Blake?

Thanks, Brendan.

our consumer optimistic impact Vaccination to and short-term outlook demand about we ahead. logistic improve is from on reflective research start very tracking despite industry the year and innovation, the and and growth to continued strong year and and focus insights. product design are drove talent, consumer remains Our The digital QX, the company rollouts in increasingly of headwinds appear well, our the meaningful to continues in our be strong. intense to consumer investments confidence

to the business good accelerated well wholesale growth and year to ahead. DTC continues visibility performing order our book for provide is Our

strategic enabling to close the I’ll to which to like invest. With to operator. Operator? back prove continued company. a in about a period, the brands call by are their strong position fast team on company’s for and our I’d I hard on over testament our members focus this the tremendous COVID for vigilant we managing last enthused us breakthrough to post thanking the our now clear front of opportunities months. world for team’s priorities believe all in XXXX, over of turn us. We and to year efforts, the and that, be work The will the XX focused Throughout is our start

Thank you.

be a now question-and-answer Please of the question. [Operator first session. proceed Our Baird. is question with will Komp comes from Instructions] conducting We line Jonathan your with

good you, Thank Yes. morning.

First the little second as flow half, just then as you thinking $XX give to here. Can ask the revenue growth to the you had, how full inventory roughly look quarter but a about of the in look you’re want question thinking in of forward chase in upside increase back when given both forward, across brands. at I outlook. also you the source I terms availability, ability the million color, the the better the you revenue year And more look giving demand, in

say would for Saucony the a I is of the our upside the our yes, that broad year Jonathan, It’s outdoor based. category. to brands, all running brands, and pretty cross work

right? e-commerce countries QX bit, performing the locked are also continue momentum economies for regions. Obviously, we reflective growth down vaccines well, performing to wholesale performance the that some return year. think bit across Sperry just extremely our And our was It’s are our I customers of to is the a but of starting see are then extremely expect broad-based open online a We rest and There’s the And to but working mixed, businesses year. well. business for international our up. a still little are upside entire the

not not a based. second single It’s not single your your brand. a geographic it’s So region. It’s channel. of It’s question… single part pretty broad then And really a

supply revenue a QX sure, we flow performance just against in to of we some quarter, in The would a in from chain even here kind we but year-over-year a sequential also that improvement, shift these of quarter of to each mean, terms of of growth, revenue XXXX kind saw by see expect too. terms as for I baseline challenges of as consider meaningful saw we that QX,

quarters the think mentioned, each of based see getting across upside terms of ahead of quarter up sort a So seeing as the as it’s benefit much similar each in Blake broad some of we’ll us. as portfolio, I

Okay.

improve like… compared quarter. including so just should XXXX revenue It second improve to going to forward, clarify, should year-over-year versus XXXX Just, sounds

QX. were down about We were in about down Right. X.X% X.X%. We

that to each see So quarter. start

to would or up And you XXXX Okay. just expect less negative? QX versus be

on we a not a QX. to we’re that kind bit improving specific of kind other No, versus given see performed quarter, we that of the in direction say than how

incremental great. a airfreight? didn’t GAAP is on for any basis. outlook. you’re Okay, part the the you business then question, commentary line. e-commerce And it. the the strength given outlook Is entirely the raise a on one maybe of that’s the on on seeing you. related top because I know on Mike question And comment marketing, net And profitability earnings the that follow-up on if the a Thank of just

question. start I’ll the Yes. Sure. with last

strong. been We our to XX% nice able year-over-year plan. profitability about some has that on really the and against leverage been even in We’ve e-comm even quarter, strong see growth beyond earnings Our really side on the leverage. talked but first

that So be to continues robust.

– as with I very head our the Blonder, seeing of there, in to one jump to ways the techniques bringing digital, On our dollars. leverage Matt of think new and find spend just we’re able quickly things new

the side for seeing getting exciting And we’re revenue the good top the balance so flow we’re as through, that’s of and a year.

adjusting question, I the was freight. and air think your other of adjusted out the Jon, about results

want costs to I be don’t mean, that. in considered first have any I of of other we types clear So all, on there.

airfreight relates We much included put to we’re demand really can have have feel have that put have our and airfreight adjustment be the we been chase necessary might amount has the like still some least adjusted But that they very it significant the secure seeing supply legacy the guidance. the interruption aggressive years. that of to us We very our at have in continue to a I of into litigation demand. we going for in incremental chain be in last is, what couple to really position a – outlook, to COVID, are as costs to – be

that, that feel situation. million directly the monitor of And is not that at this we $XX adjusting out or COVID we’ll day first to we of obviously, adjustment. this the that just need all as in hoping the related $XX It’s end provide but wanting for about in in airfreight, to extraordinary to that. We, but more that So million the the all didn’t we’re that spend won’t and of outlook. much quarter

That’s clear. very you. Thank Okay.

Thank you.

line next Steve of Our with King. CL proceed Please your with comes question the Marotta is from questions.

consolidated commentary, Mike, Blake, into Mike. QX morning, very last from your $XX mentioned on Brendan QX. million QX amplifying Good and you is one What’s in was just from of of amount of the the answers, the to slippage course, QX? slipped

is This Mike, Steve.

slippage from impact, certainly stronger $XX in time, were million anticipated brand, million but headwinds QX. I turned months a we thought you of wasn’t that’s it out into that ago, million, might last every Sperry. $XX million, when We chatted. $XX material had It about That about the – brands, quarter. our of think than we in on the be about be three was little total there recall, at for concentrated kind an we impact to of bigger some QX $XX

QX now As some ahead, the from and year. chain into supply same through we of to right about better, of QX. was that of top in line. marks $XX slippage see still see about we getting look QX But And amount million see we same issues the to we QX We we level QX. about slippage QX the experienced of the as as the logistics from

really be months glass that into country occurring bit in now, That’s variation you of looking a a from domestically what of reopening six say. or on the activities? either vaccination based could in gives the Anything Have regional you any seen rates balance helpful.

on try we irrespective COVID honest were broad-based follow you, and where we that weather. or pretty but vaccines to addressing saw of be almost they regions, with or closely, Actually, across demand

or it’s athletic, outdoor more categories, athletic, any saw weather, categories work So strong We of category. our certainly pretty demand. running

also reflective broad-based of of book both future geographies that here order and demand, States as internationally kind the Our across in United is well.

offline. questions you my on balance the take Thank I’ll Thanks. helpful. very That’s again.

Steve. Thanks, Okay.

you. Thank

from with line Duffy with Jim of Our Stifel. come proceed Please questions. is your next question the

all morning. Good are well. Thanks. doing guys Hope you

Jim. Good morning,

the start to on wanted digital. I

Has the the it And brands? for in in So far relative has the been acceleration that discussed thus broad-based digital March strength XX% trends, across implies late quarter continued February. second to in growth rate the e-commerce quarter? digital quarter-to-date you

Obviously, it we right Brendan. certainly is and is change, to I comps the would which mean, expectations. as the from already pandemic minutes as with knew with I Matt new last have is broad-based, see. pay exciting is we consulting line our the I it we really think And to in year, continued with anniversary we This Yes. some dividends coming quick really with project, mentioned and starting of a wins. techniques mentioned Blonder time, pleased some few ago, the tools on but last

in So from very also, and pleased what the also seeing wholesale.com with with our brands.com momentum pleased we’re our mentioned very Blake as well.

Great. And then, of business, on? you for international with the provide turn inventories the the for markets? international the distributor What’s at back respect the to you’re guys business expecting outlook point? distributor to the What’s on distributor can timeframe update when an state this

Yes, strength of including I and seeing country really couple Latin markets especially broad-based say over last international strong America, as now, that, we’re been across country. bit that EMA it for varies lift by years here a right know, us. And continued. has regions, the Jim and quite would has you

in by we’re outdoors, Asia country, widely Pacific, footwear, the again, trends macro were footwear. United across varies at it increased States, kind here demand work home experienced same it’s seeing athletic, but the more that the comfy of and

expect pretty international but to to frankly individual and good still COVID are levels. approach that under the this be They’ve their we severe business we a very lockdowns. very approach credit, taken year or exceed countries So some stringent to XXXX have probably

Thank Great. you.

too. inventories, about was Jim, question, your of part other The

more the more have markets, outlook that outlook and in the improved of we year. inventories overall line problematic, seeing in that international revenue and we’re for couple a back that but performance, business think where line it’s obviously part there the positive just as our with of improving a I get little

Thanks guys.

Thank you.

Murphy with your question. is Please proceed with question of come Sandler. from Our the Erinn next line Piper

Great. Thanks. morning. Good

Just quarter much date a think how are for North in the perspective. stimulus couple results? from that a the on continuing benefited first And demand period quarter, to is how And then retailers questions, of the half? ordering your second first American do you

it impact general, footwear’s consumer side, certainly on think on Yes, on I an soft stimulus the in I would goods had as say probably well.

portfolio company, we’re two-thirds our for a the the two-thirds certainly in about of consumers. As our being – benefiting from of some brands categories hottest of

of obviously future And that we with checks. into demand stimulus not at the So we you’re is going as frankly, dollars well, that economy, then raise all when of saw and see strength But demand we when demand to strong level pouring but kind we that from trillions boats. from that and of our or stimulus side, mortar traditional an XXXX. increases strength strong look seen without wholesale in DTC the but demand ever our just XXXX, customers online their not career see brick my own Probably, just see strongest over and we significant probably across I’ve both business for over business.

it’s So good from encouraging. our what and standpoint, very expect that insight gives into pretty us future to

take space. from to And the a I think provided shelf additional back brands pulling other that, to thing of add window us advantage on wholesalers to has Erinn, is some major

couple QX just very then obviously, QX, comments back going to if on it. your to just Got the I for, QX That’s revenue slippage helpful. And may, from, a QX. Mike, to

the won’t take in interpreting really of raise QX that – I see until you the see levels this start we together we So the if morning. that be until Or to should XXXX some QX. in revenue guess with guide comparability, what then last some that results airfreight, And Just in year? on a I that’s Thanks. included was believe was year. that since so I last have it we clarification it

Yes. Sure.

years, a a last airfreight solution. normal back year On there $X between few million. And last looked to of and are the for what’s kind think it always million the I year, was use over we And $X reasons question, us. as about airfreight you have

got million $XX We’ve level. in normal the results a included that’s here. So adjusted

then And than would range. considered be COVID related level. additional million the $XX normal to extraordinary a might higher for kind or even $XX million So outlook of be what

our a way, a is certainly the question that’s certainly half even, it’s this Erinn, way in mentioned right we the of back is for not at with to So now, that, QX not to more levels structure. similar we into slippage really the Even similar because cost XXXX a amount slippage way least was. weighted business. QX planning QX. from normalized at treating reason QX look quarter, outlook the business to than – it this or expect we’re Blake think closer QX by a of The or revenue be about

both. you Thank Great.

Thank you.

the with questions Research. is your Mitch Please proceed Kummetz line from next Pivotal with Our questions. comes

for a few. Thanks questions. got my taking I’ve

just it some million. the math the on the Mike, so like was $XX plan doing quarter, So slippage was million, first $XX sounds

$XXX the say Is that would So adjust there? I of is kind right the parts have way that, revenues moving for about fair kind it think to been million. to million that, the $XXX versus if of like

of some There expectations we some the our as were e-comm mentioned, certainly, we at as through business outperformed our quarter. once Right. our brands, progress performance nice in

right So that’s look I way think it, to at yes, Mitch. the

Okay. outs then benefit there? price was comments up XXX margin, off What of the year much could the which channel last. nearly was about you this some gross any that? sort bps just takes from versus year-over-year, close benefit? quantify the on a I of you how then And assume bigger and had And puts was mix,

very of year. demand necessarily in business is price be solid quarter positions the to four outpacing in the of the right? months mean, in We’re our coming second our to out to Yes. extremely quarter low. year with and full promotional as Very our clean the first the in brands. The inventories case business the continues cadence low was the help, close and ability I even was kind chase

then really our the up. mix our helped And e-commerce growth in store has that’s helped obviously in drive too. So margins

as is e-commerce of the The line all performance those operating is bottom that, on incremental nice driving So component as well leverage it’s think of but too. probably an overall our as business the you XX% I biggest factors. mix know, also up margin really

how what But just lastly, Thanks. through, surprised selling hearing the doing then mean was comments be category sandals specifically on anything were last quarter the how curious I book sandals, business that I’m we’re a And Chaco the And better. the kind just sandals would challenge any did. Chaco been curious have going given is helpful. be I into the so Yes. I’m I’d year. guess of order great if

strong some Sandals moment. inventory. outdoor should seem action any of there inventory view. would doing the consumer general present brands. wish, Chaco to action, frankly, demand our we’ve a substantially. the our well number those be at water time, be has more with some agree wish have would and We we Probably could shoes Yes. the Chaco improving and more taken Chaco had I inflows at If corrective have but across

or again, open So basically sandals category footwear, or athletic almost in demand outdoor run. demand, across not across more any we just but see but

Good Thanks. Okay. luck.

Thanks.

you. Thank

is question with your Jay UBS. Our line Please questions. proceed next from of Sole comes with

to follow-up Thank gross much. commentary. I Great. some of want you margin on just the so

then of your as margin You for kind improvement you mentioned benefiting the you XXXX the over of year these gross one-time that and year, continue? see product. versus benefits year gross sort versus normalizes and into the more that full is guidance shifts over expect do is about to Or product It’s some about mixed realization we make bps XXX If XXXX. rest and rest of have the the some of think XQ? price from margin of do and e-commerce we you that

Yes.

input talked outlook some mention going supply business those we we’re And a impact just about much us, year ocean to working And and included costs out higher rates. overcoming start The cleaner plenty our QX that impact I we’ve higher other think with have outlook, but our growing margins. full information that about costs results the already higher that and our continue against there chain Our air that benefits to incorporated and and strong. are should tailwinds related our I started in are freight year obviously to pressures that inflationary really are Higher of results. There’s is industry. going costs throughout freight and full to year. freight

all that expect that some of and to of continue But start as we to year, impact pricing year. So think those We’ll looking the locked to costs this input we start for our confident now, that we’re provide the fact might given out. business. our how production for we’ve is in we’re into more insight next about

on was $XX versus for that, QX follow Got XXXX. the I about can And it. if up million SG&A

business You that mentioned the accretive. is e-commerce

guidance? trend over just rest help the the the that over that Is us what’s you. something in of Thank the So year? understand driving dollar implied and XXXX that’s continue can you will of sort growth

about It overhead is. that that DTC higher talking our with with And SG&A businesses, to it related and a both component, mix is operate We or shift that, to accretive that mostly we’re shift much stores, e-comm mix right. are they but business the overall.

We’ve you’re low expand, also of numbers. SG&A the seeing these you’re in as that XXXX And compensation got normalized costs time was increase expenses incentive at in percent a as in gross so revenue. regard is margins seeing too. an relatively what same

around from in lowering travel those the and made So year, of that, still last COVID like costs things. our continue that. and are things we there’s on really And having and reducing be do Those with conferences still most in to some business an changes brand impact to travel of for our but we impact the efficient. play ability XXXX. global its some costs, shifts our

benefits through good So there’s coming well. some as from that

Got it.

so Okay. Thank you much.

you. Thank

with the question Poser line from Please with Susquehanna. Our your next of Sam proceed is question. comes

Well, it’s good Susquehanna everybody. morning, William’s Trading, anymore, not but

morning. Good

can a I’ve of give and for one, the can handful got specifics Saucony on that for questions. and gave got – and versus give you that Merrell us for Sperry you a couple Number us specifics XXXX? the I’ve Merrell Sperry XXXX you

for forward double been – momentum two, you Merrell in a also and Sperry we virtually down decrease three, give QX. increasing that trend can digits quarters see than four Merrell. XXXX. still the against Sperry I higher XXXX double see significantly. Yes, more about frankly, on we for And little color have see We improving would that. a going been have up would against digits

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level that saw it’ll Certainly, have in of – don’t an of We that now. be I improvement give but front me forecast usually in right don’t that Sam detail, have I you QX. don’t forecast. over what

And the of Saucony year extremely the strong. remains on quarter. for Sam, first Saucony’s And the rest did really well outlook

return So rest to we’ll the and growth the the help Sperry, of said, for boost Group we already that’ll year. Boston

improvement it the to relates to QX. as So certainly an expect yes, there, shift from we QX

QX And the beat I I’ve question, mean plan? QX Thank then you. of your a more. Mitch but sort How internal asked got beat did Did few much…

Yes.

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but certainly QX feel right we expectations our as our about Obviously, And beat really so QX, three very internal we’re outlook. we in our versus bullish ago. now, performance months great of

slipped, have well… you that wouldn’t million how Given $XX slip much if would knew you as done more have had would you thought

happened And slippage. Right. QX, than would just headwinds, example, brands in one a as other have logistic example. Sperry revenue but of so be our experienced brands one unfortunately the that of one those of increase bit the had It more a as some little for just to some

So with strong the start was year. the QX to be

is then anticipating you. expense Thank for you’re year? and interest rates And lastly, the full Mike, what tax the

guidance XX%, other still consistent around which expenses with rates original our and million. is net tax interest and the about Well, $XX right is then

much. great. Thanks Okay, very

Continued success.

Sam. Thanks, Yes.

Thanks, Sam.

you. Thank

with Susan is next questions. Riley. from Our line proceed your Anderson question Please come of with B. the

pandemic. back causes maybe on if good in expecting product and expecting we plans Make give to to more managing as what half was the be are offset a there up a through or raise timeframe? anything bit you’re in color guess the XXXX the wondering you’re for or quarter back in look Hi, that? commodity to half, of up is is prices morning. more any I And I that little costs XXXX. the – in

Yes.

give you background. just me Let some

any in come some in the obviously stability rubber, those been Certainly thinking expect in price XXXX to increases. leather, more industry increases components been it increases chain pricing, costs supply for more we may due times would When in pricing. expect certainly so cost footwear, little we costs of input ahead, year, in to for from or say, of happening flow times price those be that. be a be many up has with at cotton, that, through to eight experience my factored it starting year the here we’ve our comes this we’ve other seasons negotiate see we logistics, think cost the going through input here some than the season to on before We half to we bit many of we’re least increases, the comes summer I for might for look unbelievable back the do I When that an or when before the areas. factories we product deflation even fall all of than plan to low-single the in product It digits. spring winter XXXX.

the going We’re savings – going increases to or other look to supply some everyone going is chain. for offset we’re the of in to to see

We And lever that the price constant selective also on. frankly have industry, of then the going There XX we increases. years. a the expecting ongoing product tied to we’re We or if directly to pushback two a it. to, that reengineer working some now consumer take think so, months that’s through of price lot right we is tariffs we’re to when last had wasn’t increases pushed were always

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Our on do selective a brands new product carry basis, versus over products.

to, a starting have everything probably but the of especially coming else, next pretty strategic for spring XXXX almost anticipate we price So I season remainder increases summer and would approach with the with some year. here,

it against the tougher as we penetration all go the similar on about you mean expecting. would the the how how kind back impact just into stores, to are curious on more to should Okay, last at wholesale, That of And compares come thinking That’s you’re very a expecting or I are move great. shift of rest the see business, margins? helpful. mix we all year year? to that guess Thanks the think then we I And stay much you to up detail. down start if for also and about DTC do

against hit Saucony of kind our you our business, closed down, I stores the the But back and way because the described still e-commerce, I interesting the as really the quite is we’ve stores continuing comping saying, just This year. outlets. we’re our and overall the DTC thrilled mean forecast the conversion comp toughest how as $XXX into up. earlier, throughout period growth think Traffic pleased the it’s last penetration mentioned the of year we and as the to see were we’re mostly cadencing year. Well, terms really way we’re mean Sperry, bounced as own I business our with been rising with for but in see goal. store million obviously of half back with way I

digital robust bullish Zappos, our We also the a we so business very to and increase, the have with continuing on and Amazon that feeling see in channel especially titans, continue and DTC general. to digital

Okay, great.

expect And DTC business which that, Susan, year, total slightly be revenue from up year. to our last we would over of to to this just add be XX%

Great.

That’s of to rest the Okay. so very helpful. Thanks Good much. luck year.

Thank you.

Thank you.

you. Thank

with of your line with Please Vasilescu Our next Exane is question Laurent the proceed from come BNP. questions.

my Thanks into thank for question. color you, XQ then And and million morning. taking $XX for Mike Good all XQ. on the into slippage the

XQ, is necessarily specific the I expected think into color they considering. into bottleneck bit industry-wide? XQ. Is or company provide market there on little don’t the that will was understand And this can a but think that you where slippage their I more slippage

other think levels. any inventory Asia, Is you’ve improved factors consider? I about we West Coast, in it talked should

friends the Well, capacity industry, to the It’s I would around back speak going companies’ normal logistics slippage but of a complete scattered into delays have lot overnight. I to caused some I certainly of for not industry. rest the can’t for improve maybe the constraints some quarters. say

at improving mean see could yards. congestion, tied the I we year. personally, was the It demand. of rail And congestion QX it Chicago be that us be lack lock for some port domestically. throughout it the QX, it incredible but the between up and to could trucking rest continuing and be internally just of So a could

for were COVID-related in going our and there face those same year to at same some challenges of number as outlook improve They’re going industry, just and So that is our improve consumer industries QX. faced of QX the some goods any it’s other to soft progresses. – considerably challenges that but in least not to logistics but of QX,

Sperry Okay. back to that been switching one hear That’s this And double-digit return quarter, last I I word helpful. growth, listening double-digits. didn’t the I the but the to called tying to it questions, has of would don’t out to Sam’s time, was think it call, Sperry, then –

of check really I expecting should want or Any helpful. it just XX% double to range guard So to just even this rails would on. be we and Are higher? be year to for in growth the XX%, double-digit XX% XX%

for We Yeah. we’re expecting growth double-digit to have to not Sperry the try that get specific, year. but certainly

Okay.

And a sure. strong QX for

Fantastic.

give And Merrell, Okay. last to regards specific first with quarter, did then guidance you the for quarter.

stack, think XQ Merrell you the I a give your for growth growth, is you said about to stack? Any point growth. was specifics on think XX% XX% it’s on I can on two-year which two-year it

offerings up – the is product are well the responding strong off, product trending running I one not all search Certainly, a Merrell lifestyle is one Their Trail our very in example, business responding macro Google easy just firing of right right. again business That’s is on would Their cylinders, on of just that brands at of performance on fire. kind consumers specifics. extremely business is on, as to They’re fire. I’m is that easy strong. now. really kind that that consumer their trend. double-digit.

So of Merrell a right now tailwind. has lot

the globally. wholesalers all it And we’re and own platforms, seeing our our e-commerce, across

universal. it’s point Blake’s the So

you’re up issues of we that are best were but and categories, slippage especially of questions about we performing frankly, little the and cautious right And these some than have gave good have bad. business QX. worse across that are demand kind the I QX, about then they supply about come some a some now for we tremendous careful We expected. about be frankly, view to still or think QX really in and categories QX, the into of questions is chains asking a Laurent, right for the QX lot unpredictable

business hearing really I the give for work is about being about the why say QX. us our in we’re Merrell, which that, demand brands strong. not and cautious But you’re Saucony, a So is across business will detail the little too incredibly much

the I quite we’ve some strongest time. think maybe seen Blake in mentioned

you great That’s for hear. Thank very much help. to all the

Thank closing like would That you. back today’s all I call. for for any call to turn management time we over the is remarks. have to the

I’d On behalf Worldwide, to joining of you thank for Wolverine like us today.

have you, XX, day. our a available call June The and conference our a at good until is available will XXXX. website As on replay reminder, be replay wolverineworldwide.com. Thank

for teleconference. Thank your does participation. you conclude today’s This

at day. disconnect your a this may great lines time. Have You