Wolverine World Wide Inc. (WWW) stock experienced a significant decrease of 30.5% during premarket trades on Thursday. This decline came after the shoe and sneaker maker adjusted its 2023 profit forecast, projecting earnings of 45 to 55 cents per share. This figure is well below the $1.42 per share consensus predicted by FactSet.
The company’s outlook factors in a negative impact of approximately 11 cents per share due to fluctuations in foreign currency exchange rates. Wolverine World Wide acknowledges that the trading environment is currently challenging, particularly within the global wholesale channels. As retailers exercise caution in managing their businesses, order demand has slowed down.
As a prominent producer of footwear brands such as Merrell, Saucony, Sperry, Hush Puppies, and Stride Rite, Wolverine World Wide remains committed to addressing these challenges and adapting to the evolving market landscape. To facilitate this process, Christopher E. Hufnagel, who previously held the position of president, has assumed the role of chief executive officer with immediate effect. Hufnagel will succeed Brendan L. Hoffman, who has parted ways with the company.
In the second quarter of this year, Wolverine World Wide reported a decrease in profit to $24 million, or 30 cents per share, compared to $124.6 million, or $1.53 per share, during the same period last year. However, the adjusted profit of 19 cents per share aligns with the FactSet consensus forecast.
Although revenue experienced a decline of 17% to $589.1 million, it exceeded the analyst estimate of $583 million.
Wolverine World Wide continues to navigate through these challenging times, prioritizing strategic adjustments and seeking new opportunities in order to optimize its performance in the industry.