Revenue at Timberland and Sweaty Betty owner Wolverine drops in Q2
Fibre2Fashion
US-based apparel and footwear company Wolverine
The TimberlandSweaty Betty
Gross margin for the quarter was 38.7 per cent, compared to 43 per cent. This decline reflects the sale of higher-cost inventory due to transitory supply chain costs from 2022, the acceleration of end-of-life inventory liquidation, and increased promotions.
In terms of inventory, the situation at the end of the quarter was $647.9 million, down approximately $97.3 million sequentially from the fourth quarter of fiscal 2022.
The company also announced that Chris Hufnagel was promoted to president and CEO.
“Our second half outlook, as reflected in our updated annual guidance, is disappointing but we are confident that the work we are undertaking will drive significant profit improvement in 2024 and quickly set a strong growth foundation for the company,” said Hufnagel. “The current adversity has not only deepened our conviction that our strategic direction is more correct than ever, but that we must execute it with greater boldness and speed.”
