Wolverine World Wide (WWW) 11 May 222022 Q1 Earnings call transcript

Good morning everyone and welcome to the Wolverine World Wide First Quarter Fiscal 2022 Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions]. It this time, I’d like to turn the call over to Alex Wiseman, Vice President of Finance and Investor Relations. Sir, please go ahead.

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

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

copy a XXX-XXX-XXXX. of release you and recoveries release costs would which have If example, the call rate earnings at exchange to you foreign adjusts, to Fontana and today’s for related please net disclosures, impacts This the of directly, include during prefer changes. sent press non-GAAP of cost call for other comments environmental Jean made morning’s and

trends non-GAAP to Webcast under outlook for U.S. plans, fiscal like describing related These which COVID-XX forward-looking reflect the reconciled the to those statements year body Securities the call during are company’s Relations the predictions, Betty the the airfreight our prior as by production supplemental expected in regarding today’s and and affect performance disclosures References tab Sweaty and made on disclosure of under company’s and you year that the to Presentations the the growth Investor link. include also tables expectations, remind company’s I’d for at website the August conference to statements tables projections, Laws. delays future opportunities such XXXX, attached or XXXX. organic acquired performance in in release caused of found pandemic. adjustment charges the within were Additionally, exclusion was shipping brand

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

And call. Thanks for morning, today's you Alex. everyone. joining Good thank

We macro performance and quarter first are ongoing and backdrop. difficult challenges pleased to supply report chain strong geopolitical despite

are results testament team's execution. better-than-expected a focus to solid and Our our

in strategies our headwinds by We to to position they're profitability near-term, enhancing brands present sustainable trends to on complex remain changes beyond, the consumer Although while the and work tailwinds growth. challenges outdoor capitalize and our performance backdrop, executing to these of gains for business in on the in continued counterbalanced that provide future XXXX and our focused wellness, drive market industry and share business.

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and growth expect hit we QX with teens sequential result, a low in improvements new in market. QX deliver the anticipated As to launches QX product as

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new opened continues On In four brick-and-mortar to with the the customers Sweaty we U.K. Betty in the new quarter, new profitable stores. front attract store openings

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full the XX% growth. teens in should low in Sperry line the growth quarter For our year, with brand Wolverine expectations. deliver delivered

company of leads $XXX share way. continues a product of creative work very work industry and collaborations. with leadership boot has brand of portfolio XX% to share category U.S. in with market leading the of strong position performed over Wolverine and Our revenue growth XX%. the win brands million Wolverine with The well

in Wolverine expect the full with grow mid-teens. to in teens year high QX growth We in the

first Now supply the chain. with an to with lead-time quarter In continued long we delays update twice almost as pre-COVID as on just experience the still levels.

zero trucking capacity factory movement levels port Ukraine limitations. meaningfully improved affected quarter ongoing restrictions the Although China's tolerance by Russia, in war first U.S. and have congestion freight and was in production

our inventory and last new Betty the core the supply carryover consists potential headwinds up We year to excluding expect year At XX% meaningful still a and healthy challenge. low presenting in the levels with lessening but against of of quarter, end levels China of abnormally inventory. be a throughout evolving COVID issues Sweaty was chain

expect to We flow improve inventory and throughout the newness year.

in fundamentals opportunities. to the introductions, optimizing incredibly about strategies, spoke our of shift growth opportunities what journey for more marketing I and and our markets. means on mean growth collaborations capabilities, largest prioritizing product accomplished quarter innovation place, an remain we on and we're digital fundamentally our excited made important growth. and beginning. call, a see strategy. refined through our delivering comprehensive biggest we brands an and investments acceleration focus were XXXX The ahead. sustainable in progress Moving I'm our just on shareholder ecommerce have a approach which against supportive tremendous deliver to with global first corporate our campaigns to opportunities. of our our the will On unlock renewed proud teams product the This value and in the leading last in and market elevating international The approach future

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decreased Betty, and XX% direct-to-consumer Excluding XX% store quarter of Sweaty revenues decline first ecommerce to decline revenue reflecting X%.

attracting new to we we better of on focused our brands. top important funnel of we of some customers to marketing During investments and long-term durability is the to quarter, the the brands, balance which our growth believe

also We higher and of a balancing marketing number costs are learning returns. strategies testing with and anticipated performance

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channel we wholesale the support Beyond presence key continue our through in DTC, partnerships. to

testing is national new Hush As brand. many brands such of are Reimagined, that believe featuring shops an showcase our is opportunity amplify Warehouse We visibility iconic shops called as DSW this a to format and you aware, of Puppies brands.

to at product of our and the Product brands. is across strength innovation. everything a center we on Moving do key

apparel brands. to a expansion newness to Sweaty and product Merrell conjunction a chain introduce While category To in quarter This collaborations Sweaty few, limited-edition across of delays. supply the Moab in delivery our ESOs. up with with Betty the of challenges reflective teamed enhancements hiking product Betty name lead was speed its successful another

are We the thrilled by strong response.

leverage will expand our product As drive broaden customer capabilities reach routes. from Sport, spend development the will new our and that over performance categories launch to higher per last the we we we and customer. advanced launched most At quarter, equity Sperry brand into lifestyle to The to we technically as versatility performance Sperry activities base yet returned provides brand's sport. assortment discussed our across

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Our to October. continue make waves through run brand pulse campaign will and

boot revenue month launched also video emblem At begin to a Chief cycle that comfort sea for business. we hugely our Halo to Wolverine XX% bringing brands the to sold all. in inspired international The our Master the We while collaboration a growth with accelerate landing for and all and with the life. launches key during creativity. ride. for Earth compared XXX,XXX water the year. two-week lightweight activating in showcase quarter product page, as game innovation span. got the minute feature storytelling email last These offering successful to energized brand international XX% its Halo, Wolverine, leading a of water, of areas a and support potential The database collaborations in midsole spring out grew first technology one same with next growth Ultra boots The to visits acceleration the under the to boot the inherent In contains purpose, in these clearly

Excluding in third-party joint growth recovery our in by revenue well as grew strong top seen markets, XX% as performance its our driven business, China in Sweaty Betty our venture. international distributor

Our XX%, Sweaty are XX% excluding respectively, Latin third-party of EMA and growth, Betty delivered levels. and accelerating XX%, Asia, America pre-pandemic XXXX businesses to versus in revenue and

constraints and our Our respectively, XX% were to business XX% supply by impacted as and own they EMA business. in declined Canada domestic chain similar

and by LatAm momentum Merrell with and particularly growth brand XX% of Cat in respectively. encouraged XXX% are We

as Chile will Peru QX. Notably were are brands in Peru Merrell store well in markets recover. to in In including quarter key [indiscernible] Chile and open positioned first launched. take region Our two branded this the and Peru for share the in Maryland, Saucony sites

to of touch As want Russia/Ukraine the conflict. impact the I also we look out, on

for And which historically is to than small, That distributors inventory X% said, Our divert regions. impacted other Russia very confidence of our business to Europe, this the consumer less we allocated business. is able quarter, revenue. in during impacting were war the Russian

We support Ukrainians making of donations, efforts to we meaningful pair have as nearly are the need. In and those in and affected necessary. war, monitoring to the closely shoes displaced adjustments by conclusion, any while made And situation including those XXX,XXX are over With headwinds future of to macro discuss the global and short-term, than the supply more it in likely turn confident create environment in chain Mike will ever are challenges I the results. our we to brands. that, to our financial

you Thanks, joining the all Brendan, and for thank call.

bottom-line continue As and Brendan performance strong mentioned, quarter brands. most delivered the healthy in we see first to across top and demand

and our a points million. XX% line of versus increase First was internal XXXX. and the Sweaty X% prior group up the XX% high XX.X% driven XX% the gross margin guidance. The plan in from of our was an quarter in increase by to an $XX million from compared $XXX our year with Betty's performance expectations revenue of XXX decreased of revenue exceeded and Adjusted Michigan the Boston contribution group revenue from was basis end QX

was higher also into product the costs with During are phased we which experienced benefit of price the year benefit. in small quarter margin sequential mix. offsetting back impacted the will and each had the while as more Gross a supply channel expected, certain price quarter, The year, improvement chain from by increases, increases be half meaningful later

due than in offset much Our the softness business QX The is from was margin. in our and distributor ecommerce than general gross revenue international Adjusted seen administrative near-term expenses margin our strong gross distributor our especially addition and and this ecommerce selling, channels. lower This more for million, to compared were labor costs the QX variable in in approximately XX% year. Betty or revenue, an increase distribution Sweaty was up higher our centers. prior and of $XXX million the to $XX of costs higher

More consumer our heat in aimed importantly, during at strategic continued we and teams marketing, invest to acquisition and quarter. the brand

to a of matter. million costs include net environmental Our expenses reported $XX related SG&A legacy

X.X% charge this Adjusted will such lawsuits. line progress we in with pending pleased are and and And to towards that making margin the matter. cover resolving guidance was the our expect current quarter. We for operating be this substantially expectation meaningful

Excluding diluted earnings the the earnings $X.XX was Reported in the of growth to compared adjusted prior already year X.X% $X.XX, in of share litigation costs to per operating share margin compared Adjusted diluted net Sweaty per for the quarter Betty XX.X% X.X%. prior were of includes $X.XX year. impact mentioned.

increase about balance XX% and reflects This Turning sheet, excessive to the grew Sweaty excluding due low chain million levels abnormally of inventory last Betty. inventory to supply QX year, $XXX.X challenges. XX%, ending

healthy. and on core over very style is carry Our available inventory currently

brands of is product now support flow we for planned into improving. our and to this Importantly, expect new will launches important key for QX. will XXXX. now QX outlook the the turn products for And I

And us provided strong projected The continue rest revenue year. the to to first good start of demand a to order global quarter experience year. solid the gives we that for the visibility

our mentioned, challenges position levels more half the stable in persist, into we inventory a of while the chain have moving supply are and improved As back year.

As on fiscal and revenue the our call. last EPS a we result, XXXX reiterating on guidance provided are

We deliver of including fiscal of double-digit continue to in growth to range expect billion to to in billion for growth the $X.XX XX%, brands. XXXX, organic our $X.XXX XX% revenue record

outlook four over of we in the to our brands accelerating global Betty XX% Sweaty contribute expect This global international channels and now margin revenue year. be our operating markets DTC revenue margin to to be to Despite our adjusted XX% continue expect and Merrell, of XX% We businesses business. approximately from our still in international adjusted approximately of XX%. selling, to largest in expenses Saucony, revenue of distributor approximately direct-to-consumer general expect our ecommerce gross shift reflects Sperry to now We administrative first the We the approximately revenue. for in and full expect two XX% our to be XXXX. revenue quarter, of a thirds decline approach

earnings Our XX%. effective $XX reflects the reflects revised still Net to be of tax earnings approximately to share beginning $X.XX shares. expected range of to be of interest rate million an $X.XX count of approximately range of This the count reported the and in X.X million XX.X approximately million and since an year. outlook $X.XX are repurchased of now other share are in per per share expected average expenses share diluted revised Adjusted shares diluted the $X.XX. to in still

revenue approximately XX% the million, to be expect Gross range expected XX%. to to approximately of approximately to $XXX is operating to in adjusted or be We XX.X%. of to cents $XXX is And cents. growth approximately be share million XX.X%. XX XX are QX earnings per Margin of expected expected margin

of Looking at future our phasing we the on of the growth. mentioned based improved the price increases. orderbook, second alignment product the teens and phased earlier, half high benefit expect is year, the strong of The quarterly new pipeline

back the initiatives Before a work pass information I for fiscal leadership the on beginning specifically of beyond. has share to fiscal wanted Since focused I about call closing working return this and accelerating underway some number shareholder the been to comments, of year, at total XXXX company. for Branden team important the very on

The first of just the with the plan. year's outlook line financial execution this In priority is provided.

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towards partner and and developing portfolio the comprehensive to some Consulting enterprise with accelerate mentioned we help the these also and company to cost earlier, work, maximize brand and Group. initiatives of as in we and capital value. stages of To level support of First, a to optimization complement level the experts with may our structure early strategic of review corporate Boston outside working us efficiency new opportunities. this includes the strategy are Brenden This geared reset the goals are

into business. greater provide clarity performance to Next, of our the

of share performance on value our to above, structure in noted Day We creation plan provide biggest insights to Last, opportunities. Investor to will on our more the host a an continue we the enhance culmination and biggest detail second brands quarter. plan and work further of the growth to company's reporting our as

I'd outstanding We like the for time. execution will this global during event a an months. team specific volatile to more thank In for our incredibly their closing, provide coming timeframe in

the over turn Now Brendan. call to back

now Operator, questions. Thanks, to Mike. we will it open up

gentlemen, question Duffy and [Operator session. the time Our Ladies your from ahead comes first at Jim today this Instructions] question-and-answer question. with go Stifel. Please from we'll begin

budget be about this to brand should something engagement key everything more asking corporate by then, focused? consulting be table this incremental P&L? you in portfolio foresee start Mike, including review curious, and the Is to is I'm management Active Consulting wanted that or or for operationally of I the the And on is comprehensive is here, strategy looking within and the do Boston fees we Group.

opportunities really some and other Now we up. for work evaluating we opportunities Brendan that sort give forward. table level business those on kind as on costs pivot then here the and the of can for it and are and look say as whitespace brands can are embedded portfolio of top within in options focused the comments timeframe this I where of our outlook strategy that out the the move are COVID would to relevant kind and are certainly of here corporate I But is

think, And last remarks, time the I in my prioritization. just focusing organization I on mentioned

that to resources. think that, they'll where I really we so want focus us expand and our help on And

for demand What point? do the in business inventories you're in What but within indicators and about this very in speak you others how to at the brands, strong this seeing Helpful your for year that These are unfolding more you own hearing only not more look see during across channel direct-to-consumer pandemic, some disruption in these just of supply do running like, your been the that space. categories? categories. outdoor type dynamics Fair forward near-term to the there's demand you categories. On of and future. indicators look to could enough. something seeing a

us, just the this expected year, tremendous we're back of in first book. closure half the in still lack supply of We the just comes chain, with I It still down categories. mean, we last the really to strength newness. year, really that HX haunt Vietnam. order Well, see to in as bullish our came on The

demands, fell So to our speak because direct-to-consumer own results, we you as newness. evidenced by our no when off had it

were product and we showing over just So over. the same core

specifically out boots. also We [indiscernible] cold in missed weather

we So out of there. were stock

So it I get seeing direct-to-consumer. excited, really And further in seeing as think our what pick along be the expect about that Boot where book reporting enthusiastic our in up And family that's the to sporting both continue in we're the and in strong we a wholesale partners, optimistic. why channel, But what Barn goods you're whether very to stores we healthy that that's we channel, goods the own like see online. demand, has order or year. yesterday, flow, us make

categories I wholesale for channels, we're Opportunity side think certainly -- business and Jim, retail us and here to in some but good into bottlenecks our or inventory to the the been healthy. stores been the has channels on strongest there's and accelerate overall for cash certain QX. QX certainly with that for

our we catalyst and I As bringing it's in as growth But position forward. of the point our it added see in today newness terms obviously, for just good new core, and about as product still to. retailers strong arrives in demand product additional filling on not to new think inventory move from feel Brendan's stands

and in. Great. lastly And I'll else let someone for jump then, me,

wholesale to Pacific softness cancellations order in trends, European some you or softness related distributors you well. in partners or Asia presumably as tact? bulk book as mentioned any You this from Are in some seeing consumer

pretty has stable, row cancellation Jim, we to little standpoint, no that those strong quarters here the and in several supply especially that more against where see been been continued chase demand really, I'd been a they're challenging. it's seeing they had lucky timeframe a it's during From as in supply on been markets. say have a been this chain we to cancellations distributor for side, the

far, commitment mentioned just is And hold a but able alike. outlook, been distributors future domestic very retail still with wholesalers we've international to as our we partners, from partners, there. the and strong And our for strong so the in before, orders

question with from Please our And comes ahead your from question. Jonathan Baird. go next Komp

when brand review review? of as early from too have initiating, look across maybe benefit really on brand then, expect you And in are look what thoughts up particular do portfolio today basis? directionally at the brands the it's organic as strategy an Brendan any portfolio follow growth ongoing a of set curious, the to is any Maybe for do you a you the portfolio, I'm possible sort But, corporate brand you potential you this? or on

Yes.

sure I whether as I we we our be -- it we like an going that's unlock make more think that it resources group And corporate -- strategies growth brands and and organization. as I behind Kennedy, think that are workbook our I priorities it's the are Tom hopefully said, think strategies future think to starting our put that brand making like be and the whether growth aligned. to sure our all under biggest or

all thing nice the they're profitable. Now today, about our brands have we that

time, the profit. as having we'll a So thrown I that balancing process. have clarity better rather than the this are of go any and not we it's through And matter off really that resources think, just into

kicking in or projections it share table of literally, with excited early outlooks, on today, looking Jon, but in future the that mean, near just shared quite I be and to the here, terms outward yet. but about, we'll what off. Exactly. we on And is it's focus the we're able a you little any to process put

a on beyond the as the outlook could next might And any some potential bit growth your maybe that a for more on you be quarter, does shifts the change And the few you the tactics? little Sweaty of marketing making quarters to just here? a Betty follow expand brand, up of

on have Easter, God think the but side when were they're they for in But very I comes of again, it they've as post to Well, your to directly business. had working shoe planning some of severe product consumer. quite not as the things that the Easter, delays, the sophisticated we

actively where they're how after going the are So the investing with customers, new and they're shifting, they're and combined using. dollars marketing her customers, Julie team tools their existing different

So they did that in push weeks, last business. over few nice generates things some the some

work to continue through they'll that. so And

be bit will likely next it little quarter. choppy a So, the over

but brand DTC doesn't dollar other long-term for and expectations. that their seen you've So enthusiasm

store copying some strong expected what in it I don't opportunities in really even has other the And Sweaty we DTC, have up that the brands in quarter, tough omni-channel with performance add have. John certainly for though would of our line it's was fairly would against, XXXX. But was strong a and it Betty brand, this that for benefit QX the

of So shopping kind the that of there's lot their out to and at mortar look habits as the how we refocus as of consumer brick a well a opportunities, learnings shifts coming bit. on little as

Telsey with comes Telsey from Group. your our go Please question. Dana Advisory from question And next ahead

reopening? new from thinking of quarter like freight of there? half year uptick ecommerce be that arrival with see on that delays the stores as about through you Thank air the you things expense? shift the you demand goods for, you. the go things continuing? How thinking was back the newness. in cadence impacted Couple do or How and we of new should how drive then, in it And of to about also first are flow seems quarters, the the pack, products to the goods the And in looking we the

too our have for I of and I a just, consumer again, think I mean, the with. to engage is Dana. basically mono lack the like follow brands, just new one start just overcome. mean, Mike brand category it's I'll up. deliveries to can Thanks, We nothing difficult

then Moab get in launched year, X continue last Now, firm QX supposed it was and And to June. in we to launch so to in have it delayed, are the Merrell,

as launch be franchise, Saucony, about QX and we're And Tempus water, that. us on campaign meant down new to on list now going QX. the In along these runners I So the air. to the can the a go that's goods their call are, in in with in excited on was

here into when so sight to also of have when better And we started QX, line they'll QX, which QX inventories be be year challenged. in is we see last

really giving the kind and the what the uptick is in year. of the that's back half confidence So in business us of

remember really have of omni-channel Mike to in our terms DTC. an stores, we're terms of In in comments, not mentioned own business you his

outlets. are Our all stores

with interact stores our I way those in of ecommerce business. So the full how terms of think don't I they would in price as same

have of have ecommerce full to And opportunity. don't miss, we as store mitigate the some the so that others had just business price

give on So customer the and of to opportunity something engage the goods three them. to to last new get us with flow and opportunity to even more our -- the pressure quarters and see ourselves market into

the And this, to to going I here. her delays which Dana gave some to were February, knew there in be that we we think visibility is had key launch outlook that when we

the We flow based status the production have timing the in logistics, more much the cetera. or et on of confidence and

we --think airfreight, a than that So, good goods not even faster. have visibility not standpoint, we're very here excessively there it's it's from on We're we to leaning bit, really the though and certainly planned shifting get stabilized. little had more

year. fairly it's this with the I coming expected all into we is of had again, think So in line what

diversity expected. of we on so that But And obviously, has helps some was that us as overall, business more the business places. a directly our in ecommerce acute it on delivered pressure QX, on positive. our mitigate of we other our has than the But model had little been

And the that then taking you're on magnitude are price What's increases you all across price brands? doing? just increases,

QX of that price where product QX. new impact more the are meaningfully the we increases have starting launches, impacting, an the in increases, or were market sort is bit. got unfortunately, What delayed bigger and some delay we're linked seeing of We've meaningful a more the took with some in even those in to of and will now

much brands standpoint, of with meaningful adidas pricing the benefit in overall, the So on that very that resistance seen And also price in see higher market. passing through. no think competitor we're that so delayed. from the very far But is I line increases, we've

approach. So that with comfortable overall very

Yes.

by watch we And the pushback seen selectively any were because we phased we said, the know it throughout though taken its to consumer. doing has year, the even of example, lot of Merrell, for up have as Moab Moc in being we Mike core said, Jungle haven't it $X. how balance by again, That demand. a $XX, their from We to impacts franchises. have

question from Please ahead And our next with go your BNP Vasilescu comes question. from Laurent Paribas.

might prepared. just guardrails in you XQ you provide on Mike, hinted that over I enhanced think that Any disclosures matter?

it's business organize bit now the little how of the and at think we're look right part the I of to that more to a all business efficiently. work doing sort Well,

Brendan or continue way. just growth a I emphasize our focusing revenue. more brands, in to grouping continuing helps that's and biggest more think the focus And And represent a two-thirds of story us on before, so efficient the point. our global an and Laurent, to that performance of business, the share organization which obviously most helpful tell in foreshadowing with investors to at no mentioned the this prioritization of line the and our

Very helpful.

maybe year? know, at I we your then this mentioned Sweaty to will for come If from of year looked curious which we right, you includes XXX you do how DTC. the about And the performance? we about stated And, XXXX? think think Betty, do I to K, XX% stores, the Okay. get you how commerce within had end a just revenues think of we XXX about gave How that, e and for think that to do goal for million. think count the I store a

QX back well. of the on ecommerce, I Right, And portfolio, an XXX stores Betty organic our performance talk outlet additional by our with mentioned XXX year, new the of stores as the should and year-over-year approaching Brendan the from fleet. launches in including between and that we the to of the inflection in that most store we stores, half terms across but Sweaty so more be full includes about the in seeing or year we're good aligned or when XX%, that expect on lot a we of And we'll growth, year we standpoint, of expect them of or somewhere brand ecom added second an half stable talked think growth stores across end direct-to-consumer, the we then, Sweaty If business an stores basis. inflection a see product the are. year in Betty's ecommerce including, legacy the do for about. the

it wholesale. to versus acquisition mix direct-to-consumer as enhances our really So relates that overall

question, And last gross parse for gross color XXX helpful. helpful? was it or down on on mentioned, it costs? you you Was was then out? that guide I driver Very incremental think to real you. bps, possibly Thank or XXX margin margins be Mike, organically, a And just points? then mix the weigh that they performance. but down a Could were mix Any that the XX freight, would was basis what incremental

worse, today. the with It really just we for expected we then, the would compares the based margins essentially, mix, model business is first But than in that we're came worse our the sort mentioned prepared markets performance slightly of in than better quite that I margin helped our and gross the QX, Laurent. at And BXC. mean, looking the line on business overall. the also we plan, in have mix remarks. kind will of issue tougher us what wholesale we was the expected. was a it bit on core And quarter, as expected offset say those mix in And overall some of was but as I -- that

between is everything cost the shift So those we plan, the pricing, also a and that cetera, there line in from hadn't are few well, we overall expense different months ago. pretty what in our on mix due on else the et thought consistent guide to and margin, really, SG&A channels around really increases contemplated gross change the

our go your comes question. with Please next question UBS. Sole And from Jay from

question buybacks. My on is share

buybacks have the EPS the year, your for what included plans and for updated that's year? You are guidance in maybe Can your the for you in remind rest full us did quarter? left some authorization of then how the much buybacks

$XXX in We will them. this end that mean additional, we in million back still we year benefit current factoring any haven't share last this outlook this But year doesn't and remaining. the now, just year as over the have well. million The outlook far on some buybacks. so we X do we at won't buybacks gave meaningful But plan authorized are bought over we've reflects in we Jay shares buybacks we that of that only That right modeled don't completed. -- the

be that seriously at today's year. obviously, valuation, into of rest position on So as the we move the we'll our considering,

just from lock and China. And remind downs impact like you of large the Can a sounds I'm from a then going impacting ask stands so the in it well. It more downs sales China and it Everybody's how lock been might Okay. going us China. be the just today, JV talking about the to on has really pairs how as is perspective, far? business one

little ahead business there way business. despite them a we're great. was JV. a mean, still lockdown, Saucony we're mean, overall, the I it's bit the as amazingly, is there our steam is do small, No, -- seeing full slower with relatively still Yes. find I But planned. continuing Merrell's to doing

certainly we're So anticipating some slowness.

the in of China it there, terms COVID due in manufacturing But a of couple We're like right certainly we have still brands China, that come there. And to our materials hasn't really that's now, don't what impact. but happens, business. just if had As keeping kids size on to big some a spreads lot still the we that's largely a from have of it's exposure manufacturing. while -- small left have an of eye in

right. more where that's emphasis is So

obviously But this year, stores on for joint more seeing the outlook has wait business, the side which and see focus potential little our to venture on on in in a brands. bit that little have of think the might largest and Tempering shifted mix brands heavy outperformed the that portfolio. venture ecommerce And the impact progress the be a outlook bit our joint on has -- on we're for confident I overall, the wait downs. COVID very channel two just the in lock in that that

Anderson Please Riley. next comes from ahead go your Susan our from with question B. And question.

U.S, saw differences more U.S. growth in give in how to curious maybe could double-digit the in I back the bit a doing color just know the if the going you then on wondering brand accelerate half. to is was I I'm And if little back small, versus curious Sweaty U.S. is any Betty what's you just Europe the but also,

Yes.

double giving slowdown So digits. to start they'll they I back newness. that, flow to started Betty, again, better see the and of goods back they products get think in Sweaty year last with and the That's a as us confidence see half of

In very in it the the U.S. any they versus stores. because of different, terms U.K., is don't the have U.S,

team nice purely shops. were here And But opportunity doing expanded the shut good us Bloomingdale's, happening. into about is were intel their leases. had, wholesale pretty into and gives They gain to in as have out well U.S. the up some stores them last her and at of a the there's They to ecommerce. awareness look backup for specialty business that ecommerce stores get think Betty opportunity, think back the it's able week, with number COVID. So point as and Sweaty dozen more as Julia start to later do or have year -- at here stores a States. some they We year site tour one and a mentioned we've in before, down to opening where brand between this during top-line business But they open and Nordstroms, next an early

weighting in as their includes And the expansion that Europe, markets back of here traditionally well some half in that as in just the we'll the of new the the some the quarter. also comes Betty well of in year, but growth the Sweaty rate that's growth as fourth part focused is as in from see stores, heavy new heavily expansion the both of business that stores as home U.S.

little to And bit the we've already based an we some seen make changes as of sample they on Easter. a on fly the post of are but marking I small said, uptick a able

from our with Research. question Mitch comes ahead Kummetz your next And from Pivotal Please go question.

some Seaport You info old it’s have Research. guys

I've a got So questions. few

follow on QX kind outlook? are say could of embedded to Mike, your up what Just full Sweaty you in dollar sales and Betty. year

– sales for the year full Dollar for

and for the QX Sweaty year? Betty full

QX, full right XXX. the is outlook XXX, for think we're XX like And In around year, million. I

QX, in the for in and QX, full you was I year, not loss you're operating are an And the negative correct? assume EBIT expecting

more given business. flows first the in be the Not do, it we through through little ecommerce through full year. quarters for challenging yes, a the the volume especially or of see three But just the two those we year, -- would that typically

the weighted with profitability, the business of years. that's back the terms delivered very what few timing of consistent So has in but last

Are strength I got order complete at the your order referenced give time. half. year-over-year? then point, you've confidence book give like I the in a I numbers mean, at on you this assume wondering, And was fall looking you don't maybe XX%, that. know exception in book. make I to the of orders the this But XX% as an your you'd you've acceleration typically of back reason one fall you increase

continue and say some the maintain we Well, high is what with historically amount saying, I been we've the would brands, revenue the which for incredibly levels. is The high, have, some consistent to really, book quarters. order from have it for we've seen cases, Or several of last grow. that certainly that our been at high level, order coverage outlook especially book versus historic in

and that the do consistency it's third-party businesses the we rest fundamentally, outlook else. think is, based accelerating So distributor we performance of in over with last timing while wholesale of confidence that in But in our the ongoing have seen the changes just the orders us we we've won't which mentioned, year and and now accounts of quote right the our part and reliance feel of can the I for kind gives includes strong that of years. performance the as on year-to-date It couple to some the has coming of story. and real very we order book in the percentage the everything

with from your next [ph]. ahead question our And [Sam Fletcher Please go from comes question. Susquehanna]

have be with supply lot the one guess, supply up catching going Two, a [Indiscernible] this questions something next of really sort answered. mean, that's but problems, openings year Betty, you the thing stores, A is issues. list. Sweaty about my on -- I talked to of been because of I old

system her where we very team now sure right and I field on into wouldn't make open bad will about way real it's I not think I it opportunities estate on learn with to an estate the enter the getting having real leases Julie stores that support say surgical hard the playing half mean the stores right into. out Sam, supply anywhere the from there. and the we back year. of of based the dependent chain and deals be of open have are in think that more sort that. We're

stores driver So opened more force in to not chain couple that'll than issues the I be of QX be of or think or to back the more next supply going the year. half QX QX QX, makes But sense. of a by year

future. think It's be us business. not for the setting meaningful up overall going more I it's to to about the

Thanks.

right of two have questions. like, look I in the inventory what One, is like sort more transit So now?

which quarter, but end is of about was excessive. at XX% it Well, the normal, total not inventory, the than incredibly of higher Sam, the

and the a the the think that's things it I in probably as is consistent. of month, improve, like I to goods bottlenecks little ports the improved some continue that over improved you more in say a seeing would of And little know, we're will last flow bit.

compare does year last the to How that end first at quarter? of the

honestly, place. know, little I think a frankly, of better, year level. I think slightly end came down don't again, from I not probably it's bit very the it's a in it similar If the

And I at end the over last of high down end or it XX%. the teens to under transit year of QX XX%. think was came at just or in

come was Q. then, give going the you and in And by revenue Boston DTC to out group group, the Michigan wholesale could It's Sweaty lastly, or include what Great. other us the just Betty?

Yes.

front don't will right in I that. provide have me. We it of

turn any concluding be back management session. the today's over remarks. closing that, we'll and And question-and-answer floor like with ladies gentlemen, to I'd to for

today forward we August. updating our us Well, thanks on in everyone look next to you call and for joining

joining. and and call thank that today's we We you ladies presentation. conference will gentlemen, And conclude with for

You may your lines. disconnect now