Wolverine World Wide, the footwear and apparel maker, has adjusted its full-year sales and earnings guidance due to soft demand for wholesale products. The company now expects full-year sales of $2.31 billion to $2.33 billion, down from the previous range of $2.60 billion to $2.65 billion.
Falling Sales and Earnings
Wolverine is currently targeting full-year sales from continuing operations of $2.26 billion to $2.28 billion, reflecting a year-over-year decline of approximately 10.7% to 10.0%. The previous guidance in May had forecasted sales from continuing operations in the range of $2.53 billion to $2.58 billion.
The company is also adjusting its full-year earnings outlook to between 43 and 53 cents per share, or 45 cents to 55 cents per share on an adjusted basis. This revision comes after Wolverine had previously guided for full-year adjusted earnings of $1.40 to $1.60 per share.
Challenging Trading Environment
Chief Financial Officer Mike Stornant acknowledged the challenging trading environment, particularly in global wholesale channels where order demand has slowed. Stornant noted that retailers are taking a more cautious approach in managing their businesses. Despite these hurdles, Wolverine remains focused on improving their balance sheet metrics and driving further profit improvement benefits.
CEO Departure and Successor Announcement
In addition to the revised outlook, Wolverine also announced that CEO Brendan Hoffman has left the company. Christopher Hufnagel, a veteran executive at Wolverine, has been appointed as his successor.
Shares of Wolverine tumbled nearly 29% to $8.40 in premarket trading following the news.