The company’s consolidated revenue was down 2.5% to $599.4 million for the first quarter of FY23, compared to a year earlier, and down 0.5 % at constant exchange rates. However, the ongoing business generated $580.4 million in revenue, reflecting a steady 2.9% growth in currency, Wolverine Worldwide said in its financial results for the first quarter ending April 1, 2023.
Wolverine Worldwide posted a 12.6% year-on-year increase to $249.7 million in its international business in the first quarter of FY23, while DTC revenue fell 7.7% year-on-year annual at $124.9 million. Consolidated revenue decreased 2.5% to $599.4 million, but revenue from ongoing operations increased 2.9% in constant currency. Gross margin fell to 39.4% in the first quarter of FY23.
Gross margin for the first quarter of FY23 was 39.4%, compared to 42.5% a year earlier. This decrease can be attributed to the sale of higher cost inventory due to transient supply chain costs starting in 2022, accelerating liquidation of end-of-life inventory, and increased promotions. .
Selling, general and administrative expenses were $191 million. Adjusted selling, general and administrative expenses of $202.7 million, or 34.9% of adjusted revenue, were 45 basis points lower than a year earlier.
Inventories at the end of the quarter totaled $725.9 million, excluding $11.2 million for operations held for sale. This is a sequential decrease of approximately $19 million from the fourth quarter of fiscal 2022.
“We are pleased to have delivered first quarter results in line with guidance, which included constant currency revenue growth of 15% for our active group,” said Brendan Hoffman, President and CEO. “Results slightly exceeded our expectations and we made progress in reducing inventory. Our performance in the first quarter and the initiatives we have put in place allow us to reaffirm our outlook for the full year despite a difficult environment. »
Fibre2Fashion (DP) Press Office
