Total revenue for the period was US$713.6 million, an increase of 12.9% year-on-year, with a gross margin of 43%. Revenue growth was 25.5% over pre-pandemic 2019.
Excluding Sweaty Betty, an activewear brand acquired in August 2021, revenue was US$666.2 million, record revenue for the quarter and up 17.2% over pre-pandemic 2019.
The group’s largest brand, Merrell, achieved revenue of US$203.6 million during the period, with growth of 14% year-on-year. Saucony followed with US$135.5 million, up 7.2%. Sperry achieved US$70.1 million in revenue, dropping 13.4% on 2021, while Wolverine brought in US$57.7 million, up a notable 16.3%.
Looking forward to the full 2022 result, the company is expecting revenue in the range of US$2.74-2.79 billion, representing growth of 14-16%. Gross margin is expected to be around 42.5%.
“Despite a slowdown in June shipments, we are pleased with delivering record organic revenue in the quarter. We are encouraged by 14% growth in our largest brand Merrell, and 45% growth in our international business,” said Brendan Hoffman, Wolverine Worldwide’s President and CEO.
“We faced unplanned headwinds related to elevated customer inventory, a stronger U.S. dollar, and some lingering supply chain delays, but our operating margin was better than expected in the quarter. While we continue to expect sequential growth acceleration in the second half, we now have a revised outlook for the back half of this year that assumes higher promotional activity and elevated inventory in our wholesale channels.”