Wolverine World Wide (WWW) 1 Aug 212021 Q2 Earnings call transcript

Greetings, and welcome to the Wolverine World Wide, Inc.

Second 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].

conference recorded. this reminder, a is being As I to your like to conference over turn the host, would now Mr. Brett Parent, Investor Relations. Vice President of Strategy and Please go ahead, sir.

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

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

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

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

I Good and hope morning Brett. us. safe the for on joining everyone Thanks, call everyone is and thanks well.

and our Earlier The beat million, Boston was strategic and year-over-year, to design Our the high categories Group's brands. XXXX XX% was were QX, robust on our significantly to up XXX Revenue our strong revenue innovation, a per earnings second up representing for financial up was Both compared XX% exceeded morning, market-leading easily performance that was and approximately XXXX. also for record the reported DTC demand we a focus Group's Adjusted the is capabilities share Wolverine expectations, digit Wolverine long-term XXXX. product this growth digital company XXX%. XXXX. fueling digits consumers, especially for increase of and versus for $X.XX. Michigan results double revenue and compared in double and quarter XXXX and groups

is also order our Our business these in Certainly, very COVID-related many effective results. momentum our has reflected to and backlog combat facing and supply proactive levels approach and industry our headwinds headwinds the macro others. remains despite accelerate, continues chain high QX the at been historically strong in to

over February and million expect now is of XXXX and Given business, revenue that raised high anticipated the the original the in low fiscal range the the both delivering company's performance our guidance, XXXX than meaningful outlook excellent ends at have trends $XXX for and we our in we range. a again in higher growth

dependent the region, group international strategy also single Our distribution or is distribution momentum accelerated consumer geographic not any brand on channel. company portfolio fueling base is and as

time, has two-thirds are product like the the distributor nearly our in running partners changed brand the We versus company DTC global DTC up XXXX. XX% interactions, by hiking, business developed direct performance relative see strategy, has world, in of Together same our revenue aligned have tightly are foreseeable positioned consumer distribution data categories a dialogue this Year-to-date, efficient wealth and for with DTC DTC-focused that global strong work, now of heart doubled categories company operated the to revenue approximately generated XXXX, At channels than of brand our with model. positioned revenue momentum e-commerce today's around of has a a the and one-third more model. the our insights future. about enabling shopping is our enhanced at through consumer and accelerated our that of We with stores trends. our more consumers now our the nature and consumer and continuing and experiences, direct business

and and consumer categories, Statistics, get outside experts even years parks again. the Labor warehousing the the This to has of the and thousands timeframe, CAGR especially and as the served mindset. records. activations companies and significant majority a fashion last say year's this by showed wellness product by are continuing every and consumers of during more macro running attendance the strong in jobs demand the years, existing as conditions last begin summer, time hundreds term has they industry bolstered every long supported in over to changes U.S. Participation hiking, in continue the performance pandemic this year. year to to have prior pandemic related outdoors and COVID underlying More five and trend hire are need-based increased to adding significantly to several additional years, for year impact have future, to more also up in expected running, future. doubled several last runners the by over on into hiking and nature, hikers same XX continue U.S. lifestyle particular, consumer focused shattering While a health by expected industry are tailwinds. expected of the to the of Participation become spike, workers last primary this of running before also up is XXXX plan Consumers outdoors people XX% increased over outdoors in mid-single the in CAGR increasingly digit in are new a nearly and are have trends have interest persist. this over and renewed of alone. work has new the high-single national travel construction growth category than the million to the The the spring in healthy According workwear Bureau since digit

major in the of passage category. further momentum the would ahead, in plan the U.S. boost infrastructure this Looking

demand for continued Wolverine term, launch well, Our capitalizing are work fundamental product and consumer active brands over strong especially spring. growth Sperry into give our as this will digit long trends, and brands These we Saucony, category visibility expect Merrell, which XXXX. the for double in on increase sport and plan year future demand to and these the next our for trends confidence in our us outlook and

provide improved today, the this, final financial For detail. will some insight over Hoffman it in outlook Stornant And of revenue our to review additional QX our hand I'll drivers performance Brendan a QX robust I'll With remarks. Brendan. call conclude Mike some more now and on will growth. with

the trail the and X the very strong perform out grew than versus in generating the sold last digit significant business with of growth consumers by focused outdoor compared collection existing fashion-forward continued which brand's Merrell.com, introduced XXXX, on during Merrell robust the X the very our well and authentic Moab on growth digits double success. the to established more and and significantly trend-driven of revenue XTRL strong also build the fashion-forward brand. fresh, of two QX, double by Blake. led more driven year-over-year. exceeded the brand Merrell's high also Merrell XX% well, also for in significant and Merrell products. regions the expectations, brand to than iconic QX Merrell.com almost category of five doubling Antora DTC QX. great styles last year's largest U.S. performance revenue. colorways grew brand the runners influence Moab and lifestyle the all-time delivering with or world's the stories the style. Four is nearly drove year-over-year XXXX. heat lighter more Jungle marketing business, digits which newer lockdowns Moc with XXXX, product trail. new while back its both to The Merrell faster, focus continues nearly against year achieved collections on than and cultivating Merrell.com demanding to key launch sellers The growth than all-new up vision and doubled of part of and for footwear contributed in both growth during and storytelling Nova tripling versus franchises collection on continued Moab consumer number very up for quarterly revenue XXX% innovation top doubled year-over-year of record is over on to tripled. fuel This year Both Flight, Merrell translating poised compared Hydro capsule younger, reinterpreted success interest, Speed quarter. grew more XXXX. Thanks, of second to are the through sell-through The XX% slate the XX%. half teens hiker, nearly and year-over-year strong and large to XXX% were its last brand's became the than stores the up brands due on quickly year's better product growth of In for Moc quarter, mid-single

is growth in fashion, EMEA, is QX positioning. and and and Outdoor Pacific. nearly ahead, world performance doubled its brand a trending capitalizing in both on globally, and opportunity substantial Merrell in Asia around the possesses heritage in particularly revenue Looking where Merrell

brand's new revenue despite regions and performance. has XXXX X and in be X, QX to triple road than of business, received continues incredible Endorphin was and industry more of digits. into month, speed brand. Saucony's Endorphin the in are deliver double which to Speed into four innovation. also substantial rave in run Saucony.com than bringing and Saucony's Saucony XXX% Saucony impressive all power the by to running design seeing growth and over the Saucony last generate of maximum award-winning trail the collection momentum Endorphin brand's quarter. speed year, sneaker franchise its predecessor. The all-new performance Endorphin Ride deliver The continues up resulting and XX% to contributed flow XX, in or follow digit business was an running growth lightweight innovative geometry growth Trail, QX Endorphin over a a this earlier doubled to All tripled in three off extended lifestyle fueled versus roll up against Shift Endorphin trail. XXXX. strong Kicking Saucony's now business versus propelled continued Pro the year-over-year. lifestyle product, powerhouse category Saucony. Triumph this very for marketplace launch to the XX% Moving XXX% quarter more trail QX, tripling and which triple Originals, within brand the continues translate brand. the XXXX, for the a the introduced XX, the running with product top the The and product comping franchises, the technology growth nearly the grew by for we of robust the consistent the revolutionary digits of for reviews trend-right up grew X, heritage than launched cushioning heat more

deliver Saucony products growth total and Saucony growth Originals marketing is accounted continued as brands. with Saucony's stores by design to up work Wolverine, than Moving up. QX. smaller the opportunity Italian brand's and lifestyle, product runway over meaningful for strong begins our venture work performing forward, the a nearly and U.S. our with nearly hub. contributions Cat boot leader for well revenue XX% doubled in are from the the big presents Asia with category, up strong to in In growth technical China, for joint the in in XX%, and there in ramp significant. QX, QX opportunity Footwear and Saucony business fueled remains of XX% performance more a almost EMEA region and both core Pacific tripling

consistent we work the Blake growth expect strong indicated, As category. in

business XXXX, Wolverine digit of price a and of top in well share by version of new quarter. with brand there driven men's shown brand's of With selling fashion shoe largest gained year, and The Soletide The was the and quarter, brand's this into boat growth, The versus nearly an of the with at doubled year-over-year over the continues are XX% full a triple over key more work business stores. franchises clear younger trend. in positive category continued tiers XXXX. price a Sperry up From expanding last QX, for performance fun like other margin and excellent and injected in in business and category. brand growth growth driven XXX of Merrell, points existing the boat driver rebounded increase vaulted boat and that in reaching was has shoe biggest brands, Sperry Sperry new collections the consumer. expanding our the basis refreshed forefront category brand's styles, well brand's are in with we growth. XX% particularly over the X.Xx perform colors. by the Sneakers market trend-right standpoint, to materials the our than indications affordable up float Saucony, The QX gross DTC collection Sperry's nearly performance almost

performance, Sperry its Sport Blazers, more forward, capsules Humor new 'XX, of to by to brand Banks, of Easy and season. will In coming energy collections, business. the and trend the with to trends and responds spring intends the the Rebecca recent accelerated cream The Rowing brand active and new Minkoff. Legend and its Good collection, Moving and Float In Moc-Sider products. launch Sperry the Outer John also ice the Float Off with into macro with success with Netflix's months, leverage Popsicle & created Cozy franchise on our extending the athleisure fall/winter trend-right, the in launch performance-based On growth plans product collaborations build the Sperry consumer which anticipates

of We from half strong year. Sperry the expect year-over-year growth the back in continued

over Stores during quarter, business. up hampered XXXX, grew compared DTC business quarter. almost XXXX, Finally, in grew flat record grew year's versus to lockdown the consolidated second last essentially high was year's XXXX. XX% XXX% compared and E-commerce significantly up XX% teens our to almost the versus nearly to XXXX last

very which the improved back Looking in merchandising with across channel. drive year. as strong positions, strong year, and half brand the next in the the the at well of half portfolio, drive as lines coupled also digital product second the believe growth the are will practices We will inventory growth healthier product,

Merrell drive and in conversion the well. as to continue launch In will site months, AI first digital with We improve gains. invest app next to we of will and couple our experience mobile

which dynamic revenue more and to enhancements have faster functionalities model us international pivoted more We will extend development than of help has also to quickly. a sites year-to-date. our improved enable to e-commerce implementation more new capabilities, E-commerce XXXX doubled

Mike? back quarter reopen, XXXX to detail. the have of review started and second purchasing hand in and consumers as business e-commerce to more DTC still half stores Although to now online off of customers some going revenue our to U.S. almost wholesale markets represented our the our their our in of shift financial Mike business results increased to it the I'm outlook

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

of the XXXX. performance company's then will cover start and our for some I the key improved financial our over-delivery, second and me outlook drivers by quarter Let reviewing of

growth of represents Second the prior $XXX to revenue approximately XX% of quarter compared year. million

product margin more Adjusted to more basis expected year average normalized year million and leverage indication expectations an of investment. incentive as last mix XXX expenses points strength increased $XX of XXXX, points portfolio XXX versus basis due operating of XXXX. more primarily than While percent increase major quarter, and revenue for company's compared diluted costs. revenue, marketing basis All growth in were improvement easily were costs were and per XX.X% gross administrative specific versus of the substantial litigation the performers, marketplace. versus margin Adjusted selling in or nearly with Merrell and per Very Saucony costs year the defense increased Merrell, Sperry share nicely of $XX and was resulting periods. expenses general to healthy favorable the prior than compensation $X.XX Most marketing all loss QX, on both the than year. due in reflect volume, and brands earnings over from delivered exceeded revenue the in $X.XX U.S. Reported $X.XX management. share their per including and share levered another earnings the and expense prices. operating meaningfully our the expansion $X.XX year COVID-related a last a the diluted last gross both investment selling, growth. XXX in of in to strongest margin Adjusted and and prior improved million million strong EMEA regions better and points certain beating grew a higher expectations. gross quarter, margin Adjusted $XXX.X Saucony in XX.X%

now the the compared down approximately end balance sheet. XX% the quarter, me compared at improvement of decline to last XX% inventory to QX. year, of to shift nice end At Let the the a was

the the less as company including inventory prior approximately capacity. we of against million revolver Our of quarter million position continues headwinds the supply broader billion, of on $XX.X total from year The million $X.X with activities. million the strengthen $XXX flow compared cash cash QX, of and hand operating we impacting finished to generated nearly $XXX debt to In make industry. liquidity and progress some chain $XXX

ending provide balance very trends low the QX extremely The Our a for X.Xx. company's company an to are our quarter the outlook will bank-defined sheet ratio and our leverage in The strong. continued now at update healthy. in is outperformed XXXX. improve, on business I

levels, and into XXXX. and to to order continues good provide businesses visibility book Our historically wholesale at distributor remains high global our

February of to The XX% that trends outlook for to of This our to from increase prior the performing store fiscal billion momentum, $X.X company portfolio, represents XXXX the well billion, steady revenue range year. the end XX% $X.XX adjusted per diluted well, earnings $XXX in growth confidence range. coupled of now our at align us and to to volatility per raise in earnings in with pandemic-related the expect costs from range XXXX high disruption $X.XX. versus consumer are This COVID-specific expects air global net fleet. include X.X% chain. now strength share XXXX. of give growth $X.XX in compared Our diluted our the and of improve, economic in the environment are defense global the litigation We freight in an million incremental businesses outlook expected brand now and to of caused Reported the by our improvement to $X.XX of direct-to-consumer of continues share The results consistent including original but supply costs range the remains. fiscal with $X.XX,

outlook In see current into We marketplace, a to remarkable we this job done logistics team delays. visibility our and the continue that demand our the our have for accelerated to improve supply our we have headwinds to has chain today, including factored to costs service dynamic ability brands.

is for closing to Blake sheet very in is we With will balance to and remarks. XXXX it XXXX poised as Blake? prospects lean deliver company Our over beyond. and for forward back very growth some with that, strong strong, hand the I higher

Thanks, Mike.

Our testament increasing accelerated brand strategic growth focus performance and company's the a and strong QX are in financial investments. to

digital well several talent the design. invested we've years, paying innovation as and off. Over e-commerce investments and marketing, These are last product as technology, behind

are in digit The confident to Our have XXXX. of The and making close like to marketplace sheet double excelling thanking operator. today a opportunities team year for for continues our that, credit With as company's world team's plan the their people company. the and and position ourselves numerous in is dynamic turn we we a this to Operator? growth call efforts and in company tremendous in and work. pivotal in find over changing them. the are around be is I'll our our I'd strong, for brands advantageous by The global growth relentless expertise front we now to environment. back the members this balance fast

Instructions]. conducting question-and-answer be this session. [Operator At we’ll you. a Thank time,

Please line & comes the Associates. first your Steve with question proceed from Your CL Marotta with of question. King

a the Good Thanks. little can question. in from half getting length earnings outlook cadence Mike, and for current of you time, talk affects second supply that Thanks difficulty your bit taking appreciate about the sales here chain the a basis? and product disruptions, quarterly morning, for again my how everybody. I the it.

this Yes, challenge industry Sure. with is across definitely the the dealing board.

think a today, improved the some think well in. being as growth we downside position where confident here. our Here reflected outlook, of to have the proactive improve. at to would the as of done seeing we nicely over those deliver we back some exposure, over continues the the in half end continue that we In expect of inventory to has levels. which company, XXXX outlook, that with some By of a up risks we offset look feel And and Vietnamese can be which we've we as can is half we're positions mentioned, the back the the But I our we job be in our of of and great in year. at to the you're in disruption we even have the year, year, known with inventory that factories year I of last managing

so really navigate tactics what's choppy helped supply And we're again, us of have kind taking been some and terms of of buying in a we've chain the think, position deployed aggressive the inventory situation. I

are that detail how that helpful. talk bubble could little quickly on Can mentioned you and fire? of a a that shoe That's you. currently you you what have you we're the those Brendan, new boat Thanks. indications about think trend. Thank indications in touch bit

really in really exciting points show Web the data and strong the all that we as right really get we our with CIMI our We're We're [ph] now site. seeing retail it from seeing just men's get the and our they're group from it hearing uptick, partners It's Yes. on see that seeing to own it for information well. Sperry. us

everything the we're So precipice feeling at doing obviously of we're only with confident that that really here enhances trend, Sperry. which

row increase this I'd the information. get in that we in category where the a Yes, was market that in second the quarter saw we also U.S. think here Steve, I say

queue. in Thank I’ll back jump you.

comes question the question. next Your Please your of with proceed with line Jim from Duffy Stifel.

morning, you. doing Hope Good well? everyone. Thank you are guys

Yes.

a moment accelerated. back of the to upside year second half XXXX, wanted the quarter I SG&A on revenue relates to focus potential for leverage with in your as versus just growth the Mike, it any SG&A for

incentive Should modeling incremental more back some expect incentive in there versus expense mentioned marketing or the of and up XXXX. half appropriate we in year? the for to compensation the You to Is that leverage year? all the this come compensation levels, is trued of back half of

line, that there's full our now, allocate more and top We Yes, in direct-to-consumer performance obviously investing the also the business, the of exceeding and and our to the half. We're will that is in come, expense positive be based back businesses which across the over of results pretty comp our and channels. expect business e-commerce the expectations year heavily bottom more on line very our that and Jim, incentive on the normalized.

just nature that from do we've first shift way to in in of the full it the that track on we're at the doubled model, level, which direct-to-consumer the but a more right, year. than seeing also the year. a We're is still half much higher XXXX investing you're of So business, the XXXX for in to the business

business on our and SG&A SG&A. direct-to-consumer lot expense in a to that has shift variable the with requires focus of higher level So do model a

Thanks. Understood.

in did given you're prepared all pressures. inflationary to at but that strength late. joined call to mentioned some I up seeing demand as the you speak this you remarks, pricing gross Maybe Moving the to P&L industry? it the power outlook, the the just clear across margin relates

throughout less across really to no Right believe our demand now, frankly, impact as has the it this brands. demand, been have least on of higher year. family industry. of has Yes. see significant the That been consumer we the promotions most at seemed prices There's paying for we

yet think available. there price going those of we We'll up. some Obviously, there's power increases price going see start year. logistics increases costs We yet costs be Input So up. in the will think to this pricing industry.

in some like other some in And seeing it You're toys then price and judicious categories. price XXXX. you'll some industries, more consumer increases increases, selective see

Mike, do out view inflation we have as a channel partners from product XXXX? for look cost you your to

We do.

the Jim, -- on input product the of the cost I the year. I that side, for season, in think especially the pretty to well, that we've been think on manage spring first able half side,

from of pretty So that. some good side visibility cost logistics the the side more are of where outbound. challenges the tremendous and supply seen inbound freight both chain, distribution in to coming increases and and pressures we've Obviously, the rates,

cost or we're a cost we think I and on product But pressure managed our spring think to -- factored So XXXX. in side, well. been about the start we as that's business plan that very input side the cost it's

much, Thank you very guys.

Jim. you, Thank

Jonathan Your your Baird. proceed comes question Please of question. next from the with line with Komp

you. Thank Hi.

that currently? Mike, you now First, what's guidance in I Can just of items. just I maybe highlight can clarify? the know included for earnings is adjusting for $X.XX

Right.

have we've last consistent have some to in several the legacy issue costs that to we've included about we continue spoken to we've past, And the included and adjusted that adjustment. related costs non-GAAP with be mostly in our freights, continues that the litigation quarters. We out the air other COVID-specific that

said this do And to continue? air the you it And million I that or still and is think last call? XX you year thoughts level -- the million it just on will freight, if think current Okay. at continues XX beyond all

better aggressive harder we're next taken position getting and for supply ahead will more a a position, as to that coverage just on much plays the inventory, say provided Jon. portfolio to the should I of for that demand say, the much fall year predict think across to for demand Obviously, right given Supply have as year. predict. a out spring how that. more bit chain the teams But are that year, far demand that, that uncertainty I for now, brands have chain. it's a little hard next hard seeing our and this It's of position stronger well us I

that indicated our will be inventory position. strong think year-end I in

help seeing that air of some So will freight take off pressure demand we're this of the that some year.

then digits XXXX. mid-single And more the you. broader growth outlook looks question double like I was XXXX. half helpful year. to to color want that's the for low versus QX on digit up It this Thank you're assuming against revenue ask a Okay, second

just And about 'XX we QX given driving So you half to from you up, that you. think more maybe any shipments as benefits can frame a happen were thinking digit or factors QX, other Thank that's how follow about comment that as your up the you're there? outlook have detail the about did second on in going any growth? maybe some double

your part I'll questions. first of take the Yes,

I think normalized into now, QX amount QX. in from from what pour into occurred. right predicted the same QX Pretty a We had in about position. QX much we're over in we QX

represents our time, So QX strong When year. this distributors and some we hard the of ahead, a exactly we've a little much but QX, we to normalized the At and expect QX really the growth in been on from of partners look wholesale it's back receiving between earlier half a split XXXX orders product. international for the basis. predict given logistics performance issues, very strong

level. regions today So visibility as lot wholesale sitting by a company, business and demand a year's at next into and with we're insight the geographic more levels,

something is this a that so bit And unusual. is

product they retailers little some need of all of that disruption. the bit coming going to year's be think orders a their appreciate assured the given if to earlier I fact this they're place for year,

growth at enabled double really with next digit to that's some confidence So year. us look

call supply get helping -- be where to next them. whether fast right retailers we're are with dock the it on it new boat, door to to to earlier ways chain air the goods what and these work it think the just expedited last orders be to freight in shipping on them, we I whether And year. us allowing question that's for Getting also

from I as at their we'll better So much to our this be both look think prepared year. and XXXX, mitigate we the we cost side to side had incur

All right. Thank you very much.

Jon. Thanks,

Your of question. line Erinn Sandler. next question Murphy your with Please comes from with the Piper proceed

disruption? the are I you just exposure ups. writing I logistics for production Could are of guess on Great. share then Thanks. what then my is you Good you And some temporal the the shift question morning. a to Vietnam needing currently? follow have is factory closures, outlook. out global of your still or couple And

Vietnam Southern of the moment, closures, is Vietnam a Yes. Factories than source were and Ho At reopen for after we industry of largely closed. There's this know well. are starting of the factories -- We kind some weeks nature. half our will to And City, facts a of the as guidance two-week shutdowns in don't Minh in the two for into as primarily Vietnam factored what government all outlook, but hold, our around whole the current significant is shutdown. all we've Vietnam as for and -- guess Chi all rest the current less the us are around exactly I in our know, year. been the certainly future

of with significant kind be production to closure, shorter -- or be timeframe of wouldn't in shift any that there other so countries And disruption wouldn't there or factories.

We have the Asia. throughout on ground people there

it's So something managing we're now. every right day

guys it code as ZIP Is And between clarify. similar XX% for to somewhere well? Vietnam? you XX% the footwear Is that companies in have just to and exposure

back be a probably XX% look basis. around the Yes, end. at if We'd you high historical on

of products, The -- there, right. good Erinn, we lot news source our but do a we is

factory and supply. we're source in other other locations factory -- of countries So in already for other

So through if this worsens, dual it. have source manage to capabilities then we'll

for you. then And Brendan, maybe, it. Got

supercharging You've e-commerce to is other over know months you're you're next that their the investment share I you focused soon. app capabilities? on? of Can brands kind been of areas of prioritizing of focused little a up that kind bit on really portfolio. the Any XX Merrell e-commerce XX coming across kind other

prioritizing a from data brand investments them right collection, of all mining. standpoint, top are the on and Certainly, on of They and -- Saucony of and growth e-commerce making benefit technology, with data now a is think I fantastic their replatforming and the some will for catch we're performance growth doing Well, there. job us it's really up by their Saucony.com originals. mind both

partners. to is So for of sure, their by a Sperry, lot story being there, through other that rebound their have coming and then their cascade able directly tell through Sperry.com

and would group, there the in then well. huge I as we're growth work So -- seeing

that's a So viable becoming very channel.

pretty scenes say, both investments wide-based, of behind to which of the So really exciting. customer-facing we'll to technology. would with the And and it's I continue some fuel Erinn, is make kind that,

look Are me opportunities a curious and that forward? that growth curious M&A. at ahead? right balance then Thanks. prioritizing how you And Got both sheet you versus for is question you last M&A how deals? given just is now I'm are where Just around of organic as prioritizing you're looking it. lot

we be of yes, returning active and Well, have course, we into shareholders. we're the as very debt cash, putting all our to M&A But necessary that's down historically. available in the been and continue organic growth capital to paying

a established we of pretty criteria have well We use. set

potentially apparel, looking competencies at new footwear just digital might businesses also brands. but bring like brands, not that are strategic integrated brands, vertical some We

remain the in we, So at taking look kicking pretty and properties. frankly, a active tires

success them. the in We long growing company into have record bringing track a brands of and

Thank you.

Erinn. Thanks,

from of Williams with Please your the Your Sam proceed Trading. with question. line Poser comes next question

versus everybody. QX for year, the half was taking flowed Thanks back I question. the 'XX Good my wondering, dramatically. morning, in you in pretty just through of

But up up and through back flow was Can revenue guidance QX. some so that your the good for what is? as give is mentioned was isn't it near change doesn't digital the so color very your forth. on marketing seem Your the response -- XX% in like year and on XX%. why were as of EPS good to you us to your half Because you you And and might that? getting that be

Yes.

much strong, too. costs some flow chain weighted half I think with of talking in meaningful, and they're investments back through Sam. that to And the effectiveness A still been do the back we've remains very of kind the the are of has lot expectations those those half the for really supply of about.

really back about the areas overall, because there the I half, of when into half incremental So here versus are uncertainty. performance think first And in the half supply some chain that's conservatism really of costs. important. year drivers the back the of But that, the built it's weighting

are of many in freight air you -- regular delineate stuff, to one-time nature operations COVID-related versus there? how how and going is And what those

on we costs, having topics. to several on logistics unrelated But chain other air that that the outlook to that the have costs a based are distribution other freight. we of back we've the related done freight, supply ocean Yes, costs, half weight provided heavier year, those and the logistics, separation of

comes then And I -- prior information you could just but out Boston was could channel us give the to give the wondering just coming I Group for out? the in Thanks. us and you if if Q know the the it Q, -- Michigan Group

tell channel of including XXXX. I our of geographic between right Group that out now. versus would that We the have Yes. Michigan I grew front by well. don't all we I the as split in channels, and Boston solid region of that you wholesale, can have right don't in Group us, information, front me. across -- board you Sam, pretty and by probably but get performance

profit we on all the very really board saw sides the flow saw growth the and brands leverage really through on both from And strong groups, was there. we -- both because too nice across

to So no flow when two there's really between groups the distinction profit it comes or performance through.

then on freight margin, margin. the coming the so gross air the of lastly And out

what telling year? than we full first back about think XXX think quarter the for year the should was what about in it be the it given we to like should gross less us? half the of or first half points even basis or the How how you're So going Is that?

Yes. only be considering But we're performance, approaching range in say just XX.X% for the we're year. from million costs they performance that to and margins XX% gross typically the for air for full in year, year half in a the the times, just the said costs. of et I'd reiterate, the We've air the many freight cetera. full full fourth referring we're what like little down we first margins XX% to expecting Again, the we're based on And margins will are, extraordinary $XX bit gross our excluding which margin to. freight to quarter, that got be results operating

And We're I half the not -- things the we're as selling continuing back Blake said. promotions. the year. changing just That's think it's of not at into price, level full of

of -- some the Just more margin hit costs input that

And a bit. more back normalized the changes in half, profile little which mix margin the just a

are back are half or confirm, activity, promotional things sort how of toward just And you promotional seasonal half? the front what in the to you’re all at in to you judging -- not expecting saw versus you expecting the normalize activity

at things deep great interesting be all It it's cleanser selling full without We're will going Christmas to an pallet for the industry. a discounts that be price. the

our we're AURs excited at channels our and in So the both seeing, we're own through partners. retail

much. very Okay. Thank you guys

Thanks.

of question. your from line question proceed Mitch with Research. Kummetz next with comes Pivotal the Your Please

I've I Yes. guess few. got Thanks. a

previously, earlier First to was QX on about wanted you QX about And question I because off, to to specific follow Jon just asking Komp's pretty shifts. QX, he slippage were up the QX.

expected it XX was the saw third you each. quarter? and that million in still Is think of the I what for kind what's quarter for

wash, I When Yes. it information say net what we the to gave came fruition. was a QX -- basically we basically in you

QX from a to So from similar pour over we pour and of a a QX little over QX QX. had bit to

of lot year. Our also supply over the and driven was the steps in a area earlier chain QX demand by performance in in the accelerating fundamentally proactive took we

that performance. our So really drove

it. Got

I versus from much How your million. in it XXX gone XXX quarter, upside it's it's the to were -- then guidance you better the XXX surprised by raised sales internally? specifically positively million outlook a this you half? you so say where then upside what can know was earlier the from back in compared million. And And quarter, to But quarter, was Okay. maybe with the you last for in that up $XXX of anticipating year. quarter regard what

in call things that strongest in on metric. delivering better higher back half we be on XX% that XX% outlook, what chain. and And in of about we last mentioned the had. continues guidance, supply to demand has Blake the though, the since order the the quarter I'd -- All strengthened book say the delivered the that year, confidence over the it's Mitch, about better

we outlook chain, very in to do would even So is enough expect. And strong. did. on caution outlook raise like then confidence to the our with the the outlook is with -- we as have demand supply you But have that, we Where

lastly sorry. -- go Okay. And then ahead,

to had I all that's No, say.

I'm quarter? boots Sperry. Saucony. on Merrell kind compared growth XX%, And and was you it don't on not if work in Sperry? the What I or reference then I kind on gave two-year the heard you sure was that of if of And on Sperry, Sperry. two-year the a numbers curious gave know how Okay. but I to I'm first that to know

to have to mid-teens Sperry you, Yes. XXXX. and have I'd compared look would been get back In QX to up down QX, Mitch.

That in Mitch. improve was year as of the improvement going think QX, well. see a we're gradually back in And to to I half that nice continue the

Good much. Okay, Thank you very helpful. luck. that’s

from your comes question. with question the next line Your with UBS. Sole proceed of Jay Please

Super. XX%? XX%? that just you of frame going you are think XXXX talking a be remarks prepared much. number versus And for it what we to double you just more, be double more Maybe you just that to us comment that being a up Thank helpful. growth I guidance Is like updated that can And number would the for of are in versus bit you. digit follow Is drivers? XX%, that new I a bit Thanks sort times the the digit XXXX? gave? Mike, a little XXXX. about that main about maybe couple the made for Can on Is want up so elaborate little a more?

at Well, we remains very a we we've pretty certainly now, beyond digit QX. order much historically. experienced go morning. what level visibility in And next greater But this double demand for have ever had the unprecedented strong across I portfolio, won't right than into probably our book year

XXXX, a me, level with ahead So XXXX high not prior of -- growth with we're year. excuse XXXX, looking versus digit confidence, not the double but

Saucony, Sperry, it work looks Merrell, our and strong across it's So now, brand. very right across

And Got -- it. just

ahead. Go

ahead. No, please go

question to XXXX XXXX. something channels, also our against we're just up Sperry I add going the with own was last to in In relates that Sperry. on

tell indicator because board to leading So and that's able directly the a that's message we're to where I think consumer. talk

that's Sperry. bounce as sign wholesale I the And think will seeing XXXX another positive back. that think the talks as I about of we're Blake emergence business --

Got business read for, of it. brands for sell-through March and does what's quarter? little if of And But throughout the fiscal mean sort then did and about lot talk the a kids there's overall? your obviously because see what a collectively you portfolio And sell-through business, obviously the on your say, maybe And improve school? in your bit, that the we Keds stimulus back can to April.

I frankly, stimulus consumer. the would experience I The rates locked now XX They Saving bet consumer and been want buy Yes. they against XX the tripled, money stuff last for wouldn't over haven't want They in stuff to, have say some right up months. general, continues. travel. months. has to some that

is see K-XX now, the children school. we now, to continuing So to strong But school. the It's strong right COVID it We will going to be United States, looks to demand. right like see experience. situation predict to what like hard a back on be almost all back in in-classroom returning

so strong continue to consumer see demand. And we

double in e-commerce the kids, our on this last just And year. is group kids month our Yes.

real a happening. is strong sign of to back that's school So

much. so you Thank Great. it. Got

Jay. Thanks,

proceed Your the Dana next Telsey with your from with question line Advisory comes Please question. Group. of Telsey

everyone, to on the the progress see Good nice morning, results. and

you're to you about about how order talked the Thank on you're like book you. upcoming U.S. there's that in overseas, acceleration about, that it and Any you're holiday the an As think seeing thinking the expand season? globally. way seeing sounds what you what

as at evenly our international say would QX, growth all, I the Yes. the we really USA markets. was look and split first between of

Dana, marketed are As you know, international in about half our of pairs markets.

and across international demand including strong virtually market the at time, seeing U.S. we are same the So country every

brands it's it's for think good particular. consumer think and going to soft school our good a to We season. in going be So to back we holiday goods a be season

would The we're now. right reflect too, Dana. energized that backlog So

the distribution demand businesses or own very our business we're our you in look across trends Europe the for party strong metrics the and distributor are businesses seeing and when that markets, regions. Canada, backlog nice the So across at of third so

see fourth end Got at it. you of the them levels do and you And the of think how then the being end third the quarters? and where levels, inventory inventory do

turn outperformed, corner the now. right. bit end were which the QX, about very fact down at obviously but excited our a lower of about that that right expected, to revenue starting We we're XX% little we're than Again, frankly was

the out So at the lot the get really and of we door. quarter, turn around them were end of turn able a to goods

what's end service the very based was And ability to good on Supply and expect what at be inventories based we our of then much positive. up positions chain stronger strengthen year. of our warehouses, current impact on QX the feel We'd on the inventory of at But continue to up the in strong water point, QX. the securing throughout order, by business outlook. than in that balance those what the that the we're going year, So end we digits to projections. the on to QX and year-over-year was double always are already can have this

Thank you.

welcome. You’re

B. Your Please Riley next question. with question the proceed Anderson from with of FBR. comes your line Susan

like Hi. a the you Good for I'm quarter. up the on just just could more about And curious kind morning. strong on you sounds there. on last a you retail to brand? talk all of was? are details follow comments. the boat job Sperry, the on indicate Thanks orders time Nice all curious, seeing just for maybe guess than the start I it last if trend, you or yet when it's performance I'm Sperry. also, wholesale, then like the saw that they time performing saw want at wholesalers better then And

trends -- because our those. channels on holiday be first team in trends. seeing reaction. control -- we mentioned think the Blake We in a was the new and have the call, I'll gotten second We're tremendous the let historical last started -- we some the I part inventory. added Yes, leading comment are product the comment We I Sperry the messaging. going tremendous indicator with launches take It started control own enthusiasm. players the the for control always and to My then new

those that and of to get as year let we'll So retail the to we're certainly starting comment. lift wholesale see And performance I'll online the But stores. the XXXX. our we Blake in half see back into

Yes.

early from that when you right in innings very now. a probably time. starts. it We're had to years of has resurgence look Historically, time the for boat always lasted If that's shoe U.S. several back, the category

And the early to category U.S. last in market shoe be like in product the and We've there So we're the good. with on from Legend down. trying other signs John had quarters. couple of are the boat growth in several the Float fresh the offerings

also that's encouraging. So very

you Do for Great. coming the Sperry Thanks. talk just a have this about then you boots fall? about for And the talk for can anything maybe bit maybe offering product new also or fall? out little

We have a lot mentioned Float. of new product. Blake just

and We in well that that holiday have 'XX We're to footwear we of that. franchises. the news updates Sport And around for did as spring co-lab have existing and Sperry cool with concerts as last the I with received. launching events John Legend month some John very was launches September. really and something doing well

some seeing I've stronger. my never I So line given the previews friends I've been product of has great industry gotten what some think the from responses about they're them. and of

back they're the what about pipeline. really for it's product think seeing excited As and the development the 'XX, the I and mentioned, 'XX accounts I a of wholesale half into to team and credit are

about Great. spring must themselves for 'XX curious, I'm the you about That as question of one orders more wholesalers feel the I the orders, guess And then reads a talk just sounds that. there overall, sounds first magnitude sounds the good. lot without like And I early could orders -- then It just are the you orders? any particularly if you like very for of could? good guess it stuck Maybe half, fall. accelerated if they seeing product. are have on from

information. we've in really this would build specific say demand general, backlog continued half first I to has give QX as Yes. year. But we out throughout built of throughout the said, don't

today us for focus gives XXXX, which Our backlog increase continues year. confidence order to next a to plan and for build double digit

as extremely order it's in strong backlog. indications So reflected our

to the lot of think because And demand our levels the normal. reached Yes. of for I We've word use want brands. it's new I don't a new almost accelerate,

that baseline an So is of. new but we're building lot acceleration, it off it's some the a of just of

back so luck Thanks good. in half. sounds much. That the Great. Good

you. Thank

you, Susan. Thank

the final your comes Please Laurent from with line Paribas. of Vasilescu question. BNP Exane proceed with Your question

$XXX e-commerce let's I me, 'XX. morning. going XXX ask reach squeezing about reach is to your e-commerce to XXX Thanks the incremental own And FY going think The guidance. about million in. full me revenues to Mike, is say, million. high I over wanted Good end for effectively, but implies year about million -- remind

Just and be brand. understand wholesale business any 'XX thinking trying 'XX? And FY puts on would FY to you are versus about how the takes nuances appreciated the here for by

has on I Again, digital our shift us, the pretty months. and been focus been over several for has think business prominent last consistent that the

So that whole the e-comm in important that to referenced really portfolio. growth you of overall brands really is our the across performance

that the outdoor of balance carry up And for We're to the overall several lifestyle levels be gap. the XXXX, drivers the performance, And the over year to wholesale -- are are So times our versus closing as strongest that seeing brands they were of continue strongest very this own low-single here here mentioned we've the digits improve. again, case. the in continues continue running and for going to trends and be around work. Those are us day but growth the categories performance strong in the QX, our ones to markets. the XXXX

XXXX. from So the in have category half we're for of brands higher, outlook into in the the half year of and those improvement more positive the seeing second progressive year first that

helpful. on us assume with to in you range do on -- at a I give Maybe that. would maybe the helpful. Thank And the maybe for think question like your but that range Vietnam, would obviously, That's you color brands can then that, that's latest a out percentage it's which Vietnam? the But bit up can color of some performance, company be you report. you have level. more following very on exposure break some ESG give regards to very little I Erinn's greater

amount It's work in of And those a boot business Laurent. Vietnam, mentioned. again, have across brands you we with that brands, performance the along good

we've that. So constructions necessarily more concentration places. and of constantly we because necessarily close would and serving any I diversification brand. into our Vietnam of moved production China back those do and risk even in impact to doesn't just it's nice dual they're standpoint because a exposed mitigation, now. And we're to our outside they're but businesses, right supply sourcing it of Again, provide capability year some volume this say just we'll I for We I and our other that now. Vietnam, eye But Vietnam it that a monitoring in more very a But larger to keeping particular on monitor sourcing have what's right us have we're that And emphasize. obviously, would outlook. say, want pretty not happening of in to bigger, continue extent well from the impacts

question, 'XX. FY to helpful. last And Very then hear growth double digit the great about for

just sure, any make organic? that fully that That's anticipating M&A? is Is not to correct? Just

That is correct.

That’s great.

of Best luck. Okay. Thank you, Blake.

Thanks, Laurent.

remarks. gentlemen, we reached end closing the I have and turn the the question-and-answer would to of And Ladies session. like call for to back management

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

replay is you. August And until call good at will available replay our reminder, Thank wolverineworldwide.com. available Web be site a XXXX. day. conference As on our The a XX, have

conference. today’s concludes This

You this participation. may Thank you disconnect time. lines all your at your for