Wolverine Worldwide Provides Business Update on Second Quarter Trends - Seite 2

 

Certain countries, including many within Europe, began to emerge from the COVID-19 pandemic and started to return to more normal retail selling environments earlier than the U.S. In these markets, running and outdoor performance product categories have generally performed better than other footwear categories. 
 

The Company’s quarter-to-date revenue exceeded its expectations entering the second quarter. Total global revenue was down less than 50% compared to the same nine weeks in the prior year despite the impact of widespread global store closures during April and May. The strong performance of the Company’s owned eCommerce business helped to offset the store closures. The Company now anticipates a similar year-over-year trend in the last four weeks of the quarter.

The Company currently expects to have approximately $1 billion of liquidity at the end of the second quarter, including $400 million of cash on hand and approximately $600 million of borrowing capacity available on its revolver. Operating cash flow is still expected to be $150 million to $200 million for fiscal 2020. Financial results for the second quarter of 2020 are expected to be released in early August. 

“As the global economy continues to reopen, we are encouraged by some of the early trends,” said Blake Krueger, Wolverine Worldwide’s Chairman, Chief Executive Officer and President. “Our investment in digital capabilities over the last several years is paying off, delivering significant, highly profitable online growth. We are also seeing some promising at-once order demand where stores are open. The consumer is responding to fresh product offerings and relevant stories during this dynamic period. Our brands, particularly performance brands like Merrell and Saucony and work brands like Wolverine and Cat Footwear, are resonating with consumers in this environment, and our balance sheet and liquidity remain very healthy. We continue to be confident in the Company’s ability to capitalize on the advantages of our diversified business model, powerful brands, and disciplined operations to deliver future value for our shareholders.”