International revenue down by 6.7% for iconic brands

  • Sweaty Betty owner Wolverine Worldwide lowers revenue and earnings outlook due to Q2 decline
  • International revenue for Timberland and Sweaty Betty down by 6.7% in Q2
  • Direct-to-consumer revenue drops by 20.3% to $132.4m (£104.2m)
  • Group attributes decline to higher-cost inventory, end-of-life inventory liquidation, and increased promotions
  • New president and CEO Chris Hufnagel expresses confidence in future growth

Wolverine Worldwide, the owner of Sweaty Betty, has lowered its revenue and earnings outlook due to a 17.4% decline in Q2 revenue to $589.1m (£463.8m). The ongoing business revenue was down by 13.8% at $578.2m (£455.2m) on a constant currency basis. International revenue for Timberland and Sweaty Betty also declined, reporting at $260.9m (£205.4m), a decrease of 6.7% compared to the prior year. Direct-to-consumer revenue for the brands dropped significantly by 20.3% to $132.4m (£104.2m). The group attributed the decline to higher-cost inventory due to transitory supply chain costs from 2022, acceleration of end-of-life inventory liquidation, and increased promotions. New president and CEO Chris Hufnagel remains confident in future growth despite the setback.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the company’s financial performance, including specific revenue numbers and reasons for the decline, as well as the appointment of a new CEO. It is based on a press release from the company itself and does not include any irrelevant or sensational details.
Noise Level: 3
Noise Justification: The article provides relevant information about a company’s financial performance and leadership change, but lacks in-depth analysis or exploration of the reasons behind the decline and potential long-term solutions.
Financial Relevance: Yes
Financial Markets Impacted: Wolverine Worldwide’s stock price
Financial Rating Justification: The article discusses a company’s lowered revenue and earnings outlook, which can impact its stock price and the overall financial performance of the business. This directly pertains to financial topics and has an effect on the company itself and potentially related financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk