Wolverine World Wide Inc (WWW) 2023 Q1 法說會逐字稿

Greetings, and welcome to the Wolverine World Wide, Inc. First Quarter 2023 Earnings Call. (Operator Instructions) As a remainder, this conference is being recorded.

您好，歡迎來到 Wolverine World Wide, Inc. 2023 年第一季度財報電話會議。 （操作員說明）作為其餘部分，正在錄製此會議。

It is now my pleasure to introduce your host, Alex Wiseman, Vice President of Finance. Thank you. Please go ahead, sir.

現在我很高興向您介紹主持人，財務副總裁 Alex Wiseman。謝謝。請繼續，先生。

Good morning, and welcome to our first quarter 2023 conference call. On the call today are Brendan Hoffman, our President and Chief Executive Officer; and Mike Stornant, our Executive Vice President and Chief Financial Officer.

早上好，歡迎來到我們 2023 年第一季度的電話會議。今天接聽電話的是我們的總裁兼首席執行官布倫丹·霍夫曼 (Brendan Hoffman)；以及我們的執行副總裁兼首席財務官 Mike Stornant。

Earlier this morning, we issued our earnings press release and announced our financial results for the first quarter 2023. The press release is available on many news sites and can be viewed on our corporate website at wolverineworldwide.com. This morning's earnings press release and comments made during today's earnings call include non-GAAP disclosures, which adjust for certain items such as environmental and other related costs, net of cost recoveries, reorganization costs, foreign exchange rate changes and a gain on the divestiture of the Keds business.

今天上午早些時候，我們發布了收益新聞稿，並公佈了 2023 年第一季度的財務業績。該新聞稿可在許多新聞網站上找到，也可以在我們的公司網站 wolverineworldwide.com 上查看。今天上午的收益新聞稿和在今天的收益電話會議上發表的評論包括非 GAAP 披露，這些披露對某些項目進行了調整，例如環境和其他相關成本、扣除成本回收、重組成本、匯率變化和資產剝離收益Keds 業務。

Financial results and guidance for 2023 and comparable results for 2022 for our ongoing business exclude the impact of Keds, which was sold in February 2023 and Wolverine Leathers, which is subject of a sale process and reflect an adjustment for the transition of our Hush Puppies North America business to a licensing model in the second half of 2023. These disclosures were reconciled in attached tables within the body of the release.

我們正在進行的業務的 2023 年財務結果和指導以及 2022 年的可比結果不包括 2023 年 2 月出售的 Keds 和正在出售過程中的 Wolverine Leathers 的影響，反映了我們對 Hush Puppies North 的過渡進行的調整美國企業將於 2023 年下半年採用許可模式。這些披露在新聞稿正文中的附表中進行了核對。

I'd also like to remind you that statements describing the company's expectations, plans, predictions and projections, such as those regarding the company's outlook for fiscal year 2023, growth opportunities and trends expected to affect the company's future performance made during today's conference call are forward-looking statements under U.S. securities laws. As a result, we must caution you that there are a number of factors that could cause actual results to differ materially from those described in the forward-looking statements. These important risk factors are identified in the company's SEC filings and in our press releases.

我還想提醒您，在今天的電話會議上描述公司預期、計劃、預測和預測的陳述，例如關於公司 2023 財年展望、預計會影響公司未來業績的增長機會和趨勢的陳述是根據美國證券法的前瞻性陳述。因此，我們必須提醒您，有許多因素可能導致實際結果與前瞻性陳述中描述的結果存在重大差異。這些重要的風險因素已在公司提交給美國證券交易委員會的文件和我們的新聞稿中確定。

With that being said, I'd now like to turn the call over to Brendan Hoffman.

話雖如此，我現在想把電話轉給布倫丹霍夫曼。

Thank you, Alex. Good morning, everyone, and thank you for joining today's call. We delivered first quarter results in line with our guidance. And despite industry headwinds, we are reaffirming our full year guidance. Our Active Group delivered 12% revenue growth on a reported basis and 15% revenue growth in constant currency led by Merrell and Saucony, with the strongest revenue increases coming from our international markets.

謝謝你，亞歷克斯。大家早上好，感謝您參加今天的電話會議。我們根據我們的指導交付了第一季度業績。儘管行業逆風，我們重申我們的全年指導。我們的 Active Group 在 Merrell 和 Saucony 的帶領下實現了 12% 的報告收入增長和 15% 的固定匯率收入增長，其中最強勁的收入增長來自我們的國際市場。

As expected, our actions to expedite the sale of end-of-life inventory pressured gross margin and have left us better positioned for future performance. We are encouraged by the progress we have made to execute on our strategy for long-term revenue growth and profitability increases. As laid out in prior calls, the strategy includes building stronger brands that resonate more powerfully with our consumers, distorting investment to our growth brands and extending our brands from their core businesses into large, fast-growing adjacent markets and categories. Additionally, we have continued to make progress against our operational goals to remove cost and complexity while we increase our speed, efficiency and agility.

正如預期的那樣，我們加快銷售報廢庫存的行動壓低了毛利率，並使我們為未來的業績做好了更好的準備。我們在執行長期收入增長和盈利能力增長戰略方面取得的進展令我們感到鼓舞。正如之前的電話會議所述，該戰略包括建立更強大的品牌，與我們的消費者產生更強烈的共鳴，扭曲對我們成長品牌的投資，並將我們的品牌從其核心業務擴展到大型、快速增長的相鄰市場和類別。此外，我們在提高速度、效率和敏捷性的同時，繼續朝著我們的運營目標取得進展，以消除成本和復雜性。

First quarter financial highlights include reported revenue from the ongoing business, in line with our expectations of $580 million, up 1% on a reported basis and increasing 3% in constant currency from the first quarter of 2022. Adjusted diluted earnings per share of $0.09, above our expectations for adjusted diluted EPS of $0.05. Net inventory for our ongoing business declined nearly $20 million sequentially from fourth quarter of 2022 and is on track to end 2023 down approximately $225 million versus the prior year.

第一季度的財務亮點包括報告的持續業務收入，符合我們 5.8 億美元的預期，較報告基礎增長 1%，按固定匯率計算較 2022 年第一季度增長 3%。調整後的攤薄每股收益為 0.09 美元，高於我們對調整後攤薄每股收益 0.05 美元的預期。我們正在進行的業務的淨庫存從 2022 年第四季度開始連續下降近 2000 萬美元，並且有望在 2023 年底比上一年下降約 2.25 億美元。

During the quarter, we further improved our operational capabilities and our ability to execute against our financial and strategic goals. The highlights include: the refinement of our operating structure, specifically, the new brand group structure now enables our teams to more easily collaborate and share best practices across common categories and markets. We are also making great strides to modernize our supply chain and operations planning processes, including the investment in a new product life cycle management tool set that will be operational later this year.

在本季度，我們進一步提高了運營能力以及執行財務和戰略目標的能力。亮點包括：改進我們的運營結構，具體來說，新的品牌集團結構現在使我們的團隊能夠更輕鬆地跨常見類別和市場進行協作和共享最佳實踐。我們還在實現供應鍊和運營規劃流程的現代化方面取得了長足進步，包括投資於將於今年晚些時候投入運營的新產品生命週期管理工具集。

In March, we integrated Sweaty Betty into our London-based international team to align them more closely with the company's global centers of excellence. We expect this change will allow us to better leverage the company's logistics, technology and operational expertise to harvest savings that can be reinvested in growth opportunities for Sweaty Betty.

3 月，我們將 Sweaty Betty 整合到我們位於倫敦的國際團隊中，使他們與公司的全球卓越中心更緊密地保持一致。我們預計這一變化將使我們能夠更好地利用公司的物流、技術和運營專業知識來收穫可以重新投資於 Sweaty Betty 增長機會的儲蓄。

The profit improvement office remains on track to deliver $65 million of cost savings in 2023. I'm especially pleased to see the collaboration across all areas of the business to secure these benefits and make them sustainable going forward. We have begun to see earlier-than-expected flow-through of some of the supply chain savings. We continue to expect $150 million of annual savings from the profit improvement office in 2024.

利潤改善辦公室有望在 2023 年實現 6500 萬美元的成本節約。我特別高興地看到業務所有領域的合作，以確保這些收益並使它們可持續發展。我們已經開始看到一些供應鏈節省的資金比預期更早流入。我們繼續預計 2024 年利潤改善辦公室每年可節省 1.5 億美元。

The optimization of our portfolio continues, allowing us to focus resources on the businesses and brands that we believe will drive the highest return for our shareholders. The recent sale of Keds and pending licensing of Hush Puppies will enable this focus and these transitions are well underway.

我們的投資組合繼續優化，使我們能夠將資源集中在我們認為將為股東帶來最高回報的業務和品牌上。最近出售的 Keds 和待定的 Hush Puppies 許可將使這一重點成為可能，這些轉變正在順利進行。

We also continue to work towards an exit for the Wolverine Leather business. As we evaluate opportunities ahead for the company, we need to focus our future efforts and investments on our growth brands, Merrell, Saucony and Sweaty Betty. Therefore, we have decided to explore strategic alternatives for Sperry over the coming months while we continue the foundational work needed to position the brand for long-term success.

我們還繼續努力退出金剛狼皮革業務。在我們評估公司未來的機會時，我們需要將未來的努力和投資集中在我們的成長品牌 Merrell、Saucony 和 Sweaty Betty 上。因此，我們決定在未來幾個月內探索 Sperry 的戰略替代方案，同時繼續為品牌的長期成功定位所需的基礎工作。

Sperry is a special brand with unique authenticity and heritage. It is the brand I was most familiar with when I joined the company. I'm convinced that with the right focus and investment, this brand has a very bright future. This decision will allow us to put more resources behind; expanding Merrell's lifestyle business; extending Saucony's reach beyond the core to everyday active and lifestyle consumers; global expansion of Saucony's original business, which remains robust in Europe, it has great potential elsewhere in the world, particularly in the U.S.; stabilizing Sweaty Betty's home market in the U.K. and Ireland, while looking for opportunities globally, including the U.S. and China; investing in technology, specifically around our e-commerce platform and user experience.

Sperry 是一個特殊的品牌，具有獨特的真實性和傳統。這是我剛加入公司時最熟悉的品牌。我相信，通過正確的關注和投資，這個品牌擁有非常光明的未來。這一決定將使我們能夠投入更多資源；擴大 Merrell 的生活方式業務；將 Saucony 的影響範圍從核心擴展到日常活躍和生活方式的消費者； Saucony 原有業務的全球擴張，在歐洲依然強勁，在世界其他地方，尤其是美國具有巨大潛力；穩定 Sweaty Betty 在英國和愛爾蘭的本土市場，同時在全球範圍內尋找機會，包括美國和中國；投資技術，特別是圍繞我們的電子商務平台和用戶體驗。

Moving on to brand results. Starting with the Active Group consisting of Merrell, Saucony, Sweaty Betty and Chaco. We are pleased with the group's performance in the first quarter, including 12% growth on a reported basis and 15% in constant currency. However, some of this was due to timing given last year's recovery from the Vietnam shutdown that changed the order flow throughout the first half of the year. As expected, this benefited Q1 and will pressure Q2.

繼續品牌成果。從由 Merrell、Saucony、Sweaty Betty 和 Chaco 組成的 Active Group 開始。我們對該集團第一季度的業績感到滿意，包括按報告基礎增長 12% 和按固定匯率計算增長 15%。然而，部分原因是由於去年越南停工後的複蘇改變了整個上半年的訂單流。正如預期的那樣，這對 Q1 有利，並將對 Q2 造成壓力。

Merrell's revenue increased 18% on a reported basis and 20% in constant currency to $180 million in the first quarter. This performance was in line with our expectations for high teens growth in the quarter. Notably, Merrell gained market share based on NPD data due to strength in core products and extensions and new franchises. Most notably, the strength of our core Moab franchise, which we refreshed with the launch of the Moab 3, reinforced our product leadership while demonstrating our ability to drive relevance and consumer love through technological innovation. As a result, Merrell showed the biggest share gains of all brands in the Hike category for the quarter.

第一季度，Merrell 的收入按報告基礎增長 18%，按固定匯率計算增長 20% 至 1.8 億美元。這一表現符合我們對本季度青少年高增長的預期。值得注意的是，由於核心產品和擴展以及新特許經營權的實力，Merrell 根據 NPD 數據獲得了市場份額。最值得注意的是，我們通過推出 Moab 3 更新了我們的核心 Moab 特許經營權，鞏固了我們的產品領導地位，同時展示了我們通過技術創新推動相關性和消費者喜愛的能力。因此，Merrell 在本季度的 Hike 類別中顯示出所有品牌中最大的份額增長。

In TRL running, Merrell returned to share gains in the first quarter. We are excited about Merrell's expansion of its lifestyle product line and believe this is our highest growth opportunity for Merrell. Our lifestyle product line, 1TRL continues to expand the brand's reach with retail partners and customers.

在 TRL 運行中，Merrell 在第一季度重新獲得了份額收益。我們對 Merrell 擴展其生活方式產品線感到興奮，並相信這是我們對 Merrell 的最大增長機會。我們的生活方式產品線 1TRL 繼續擴大品牌在零售合作夥伴和客戶中的影響力。

In the quarter, we opened the first 1TRL store in Tokyo and plan to selectively open more of 1TRL stores, which provides the brand's most elevated expression around the world. Looking ahead, we continue to expect Merrell's revenue to grow mid-single digits in fiscal 2023. However, we expect Q2 revenues to decline mid-teens versus 2022 caused both by the difficult macroeconomic headwinds as well as year-over-year product flow shifts that I mentioned earlier. Revenue for the first half of 2023 is expected to be flat.

本季度，我們在東京開設了第一家 1TRL 門店，併計劃有選擇地開設更多 1TRL 門店，以在全球範圍內提供品牌最高尚的表達方式。展望未來，我們繼續預計 Merrell 的收入在 2023 財年將實現中個位數增長。但是，我們預計第二季度的收入將比 2022 年下降 15% 左右，這既是由於困難的宏觀經濟逆風，也是由於產品流量同比變化我之前提到過。預計2023年上半年收入持平。

Before I discuss Saucony's results, I wanted to make you aware of a change in leadership. Anne Cavassa, previously Saucony's brand President, has left the company. We thank her for her contributions and wish her well. The process of naming a successor is well underway. In the interim, Chris Hufnagel, President of our Active Group, will be working more closely with our strong Saucony team. We believe having Chris more involved in the day-to-day operations of Saucony will allow for greater collaboration and synergies with Merrell as we look to solidify Saucony as a preeminent leader in core running and leverage the brand's strength in technology and innovation to build out a lifestyle offering to broaden its wear occasions and consumer reach.

在討論 Saucony 的結果之前，我想讓您了解領導層的變動。前 Saucony 品牌總裁 Anne Cavassa 已離開公司。我們感謝她的貢獻，並祝她一切順利。任命繼任者的過程正在順利進行。在此期間，我們 Active Group 的總裁 Chris Hufnagel 將與我們強大的 Saucony 團隊更緊密地合作。我們相信，讓 Chris 更多地參與 Saucony 的日常運營將有助於與 Merrell 加強合作和協同效應，因為我們希望鞏固 Saucony 作為核心運營領域卓越領導者的地位，並利用該品牌在技術和創新方面的實力來打造一種生活方式，可以擴大其穿著場合和消費者範圍。

In the first quarter, Saucony's revenue grew 21% on a reported basis and 25% in constant currency to $133 million. Revenue surpassed our expectations for high single-digit growth in the quarter, driven by increases in the performance core run category and early progress on our initiative to broaden our reach to an active and lifestyle consumer, along with the change in receipt flow I mentioned earlier.

第一季度，Saucony 的收入按報告基礎增長 21%，按固定匯率計算增長 25% 至 1.33 億美元。收入超過了我們對本季度高個位數增長的預期，這主要受性能核心運行類別的增長和我們擴大對積極和生活方式消費者的影響的舉措的早期進展以及我之前提到的收據流的變化的推動.

In the quarter, we also launched Endorphin Elite with a very positive consumer reaction and saw a 74% sell-through on saucony.com in the first week of the launch. Despite being new to the market, of the 25,000 runners who competed at the Boston Marathon, it was in the top 10 most worn styles. Overall, Saucony was the second highest worn shoe brand in the sub-3-hour category at the Boston Marathon.

在本季度，我們還推出了 Endorphin Elite，消費者反響非常積極，並且在推出的第一周在 saucony.com 上的銷量達到了 74%。儘管是市場新手，但在參加波士頓馬拉鬆比賽的 25,000 名參賽者中，它是最常穿的 10 種款式。總體而言，Saucony 是波士頓馬拉松 3 小時以下類別中磨損率第二高的鞋類品牌。

Now touching on our Saucony Originals business, which is approaching 20% of the brand's global revenue. In the U.S. wholesale channel, we opened new accounts, including fashion lifestyle platform Shopbop and EVEREVE, leveraging on our classic franchises to expand reach to more lifestyle consumers.

現在談談我們的 Saucony Originals 業務，該業務接近該品牌全球收入的 20%。在美國批發渠道，我們開設了新賬戶，包括時尚生活方式平台 Shopbop 和 EVEREVE，利用我們的經典特許經營權擴大對更多生活方式消費者的影響。

In Europe, we featured the Who is Rod Dixon campaign to launch the DXN trainer putting the style in the #1 spot for multiple weeks post launch on Saucony.eu. Looking ahead, we expect Saucony revenue to decline mid-single digits in Q2, grow mid-single digits in H1 and grow high single digits in fiscal 2023.

在歐洲，我們推出了 Who is Rod Dixon 活動，以推出 DXN 訓練器，在 Saucony.eu 上推出後數週內，該款式一直位居第一。展望未來，我們預計 Saucony 收入將在第二季度下降中個位數，在上半年增長中個位數，並在 2023 財年增長高個位數。

Moving on to Sweaty Betty. First quarter revenue decreased 3% in constant currency and 11% on a reported basis to $47 million. These results, while disappointing, were better than our expectations for a mid-teens decline. Sweaty Betty results continue to be impacted by the challenging retail environment in the U.K. The recent launch of the Zero Gravity Running Bra, along with other product innovations, has led to improved sales trends in April, higher units per transaction and less promotional activity.

轉到汗流浹背的貝蒂。第一季度收入按固定匯率計算下降 3%，按報告計算下降 11% 至 4700 萬美元。這些結果雖然令人失望，但好於我們對十幾歲中期下降的預期。 Sweaty Betty 的業績繼續受到英國充滿挑戰的零售環境的影響。最近推出的零重力跑步文胸以及其他產品創新使 4 月份的銷售趨勢有所改善，每筆交易的單位數增加，促銷活動減少。

We continue to stabilize Sweaty Betty in its home market in the U.K. and Ireland, while improving profitability through synergies from stronger integration within the rest of the portfolio. Looking ahead for Q2, we expect a low teens decline in Sweaty Betty revenue. For fiscal 2023, we expect Sweaty Betty to decline low single digits on a reported basis and increased low single digits on a constant currency basis.

我們繼續穩定 Sweaty Betty 在英國和愛爾蘭的本土市場，同時通過加強與其他產品組合的整合所產生的協同效應來提高盈利能力。展望第二季度，我們預計 Sweaty Betty 的收入將出現十幾歲的小幅下滑。對於 2023 財年，我們預計 Sweaty Betty 將在報告基礎上下降低個位數，並在固定貨幣基礎上增加低個位數。

Work Group revenue declined 17% on a reported and constant currency basis to $115 million. The revenue decline in the quarter was primarily due to normalized phasing of Caterpillar International spring product flow as well as pressure from consumers trading down to lower price point products. Our brand teams have already responded with great offerings in the under $100 price category.

按報告和固定匯率計算，工作組收入下降 17% 至 1.15 億美元。本季度的收入下降主要是由於卡特彼勒國際彈簧產品流的正常分階段以及消費者轉向低價產品的壓力。我們的品牌團隊已經推出了價格低於 100 美元的優質產品。

Our highly anticipated collaborations continue to resonate well with customers, generating further brand awareness and loyalty. Following the first launch in 2022, Wolverine continued its journey in the Halo universe with the launch of our a four-boot, limited-edition Wolverine and Halo Master Chief boot collaboration that sold out in less than 1 minute.

我們備受期待的合作繼續與客戶產生良好的共鳴，進一步提高了品牌知名度和忠誠度。繼 2022 年首次推出後，Wolverine 繼續其在 Halo 宇宙中的旅程，推出了我們的四靴限量版 Wolverine 和 Halo Master Chief 合作款靴子，不到 1 分鐘就銷售一空。

Within the last week, Wolverine won collaboration of the Year from the Fashion Group International for its Pappy Van Winkle boots, and they were honored as brand of the year by the Accessories Council. Finally, we are very excited about Bates' test launch at Walmart in over 200 stores in the second half of the year. This expansion could be very meaningful to the brand given the runway Walmart offers. Looking ahead, we expect Work Group revenues roughly flat in fiscal 2023, with high single-digit declines in Q2.

上週，Wolverine 憑藉其 Pappy Van Winkle 靴子贏得了 Fashion Group International 的年度合作獎，並被配飾委員會授予年度品牌稱號。最後，我們對貝茨下半年在沃爾瑪 200 多家門店的試售感到非常興奮。鑑於沃爾瑪提供的跑道，這種擴張對品牌來說可能非常有意義。展望未來，我們預計工作組收入在 2023 財年大致持平，第二季度出現高個位數下降。

The Lifestyle group, which includes Sperry and Hush Puppies, saw a revenue decline of 8%, both on a reported basis and constant currency. Sperry first quarter revenue declined 13% to $63 million, which was softer than our expected high single-digit decline due to lower sell-throughs of certain styles caused in part by the unfavorable weather during the spring season. We are focused on stabilizing Sperry with initiatives to introduce styles that more closely resemble the brand's DNA. We remain optimistic about the growing prep fashion trend that is emerging in the market. We expect Sperry revenue to decline high single digits in fiscal 2023, with a low teens decline in the second quarter.

包括 Sperry 和 Hush Puppies 在內的 Lifestyle 集團的收入下降了 8%，無論是在報告基礎上還是在固定匯率的基礎上都是如此。 Sperry 第一季度收入下降 13% 至 6300 萬美元，低於我們預期的高個位數降幅，原因是某些款式的銷量下降，部分原因是春季天氣不利。我們專注於通過引入更接近品牌 DNA 的款式來穩定 Sperry。我們對市場上出現的日益增長的預備時尚趨勢保持樂觀。我們預計 Sperry 的收入在 2023 財年將出現高個位數的下降，第二季度的下降幅度為十幾位數。

Now I will briefly touch on our International business. Revenue grew 13% on a reported basis and 18% in constant currency in the first quarter. Our brands continue to resonate well in global markets, and we see significant opportunities in both owned and JV-operated markets. Merrell and Saucony across regions were the key drivers of performance with 29% and 37% growth, respectively. Saucony's China JV once again had a very strong quarter as sales grew over 100%, exhibiting the strength of our multichannel strategy.

現在我將簡要介紹一下我們的國際業務。第一季度收入按報告基礎增長 13%，按固定匯率計算增長 18%。我們的品牌繼續在全球市場上產生良好的反響，我們在自有和合資經營的市場上都看到了巨大的機遇。跨地區的 Merrell 和 Saucony 是業績的主要推動力，分別增長了 29% 和 37%。 Saucony 的中國合資企業再次取得非常強勁的季度銷售額增長超過 100%，展示了我們多渠道戰略的實力。

In Q1, the brand launched the Endorphin Elite in China, which sold through 60% in 30 days and provided invaluable activization and media opportunities for the brand. The growth also includes the addition of 12 new stores during the quarter, bringing our total store count to 81. We continue to expect Saucony revenue from our China JV to double in 2023.

第一季度，該品牌在中國推出了 Endorphin Elite，30 天內銷量突破 60%，為品牌提供了寶貴的活動和媒體機會。增長還包括本季度新增 12 家門店，使我們的門店總數達到 81 家。我們繼續預計 2023 年索康尼來自中國合資企業的收入將翻一番。

In conclusion, as we move through the year, we remain focused on driving growth across our Active Group, leveraging our leading position in Work and addressing our underperforming brands, all while increasing the efficiency of our business model. We are excited about newness and marketing initiatives planned for the back half of the year across our brands. We are fully on track to return to the high single-digit growth in the second half of 2023 as we lap supply chain disruptions of last year. Finally, we expect to continue to reduce inventory and take costs out of the business to free up investment for 2024 and beyond.

總而言之，在這一年中，我們將繼續專注於推動整個 Active Group 的增長，利用我們在工作領域的領先地位，解決我們表現不佳的品牌，同時提高我們商業模式的效率。我們對今年下半年計劃在我們的品牌中推出的新穎性和營銷計劃感到興奮。隨著我們結束去年的供應鏈中斷，我們完全有望在 2023 年下半年恢復高個位數增長。最後，我們預計將繼續減少庫存並削減業務成本，以釋放 2024 年及以後的投資。

I will now turn the call over to Mike to discuss more details about our first quarter financial results and our 2023 outlook.

我現在將電話轉給邁克，討論有關我們第一季度財務業績和 2023 年展望的更多細節。

Mike?

麥克風？

Thanks, Brendan, and thank you all for joining the call. Let me briefly recap certain financial highlights primarily from our ongoing business for the first quarter, and then I will cover our outlook for the second quarter and full year. First quarter revenue for our ongoing business of $580 million was in line with our outlook and represented approximately 3% constant currency growth. Our most important brands, Merrell, Saucony, Sweaty Betty and Wolverine accounted for over 70% of our revenue during the quarter. Reported revenue was $599.4 million. Adjusted gross margin of 40% was in line with our expectations. Adjusted operating margin was 5.1% and included the impact of $25 million of incremental transitory supply chain costs.

謝謝布倫丹，也感謝大家加入電話會議。讓我簡要回顧一下我們第一季度正在進行的業務的某些財務亮點，然後我將介紹我們對第二季度和全年的展望。我們正在進行的業務的第一季度收入為 5.8 億美元，符合我們的預期，並代表約 3% 的恆定貨幣增長。我們最重要的品牌 Merrell、Saucony、Sweaty Betty 和 Wolverine 在本季度占我們收入的 70% 以上。報告的收入為 5.994 億美元。調整後的毛利率為 40%，符合我們的預期。調整後的營業利潤率為 5.1%，其中包括 2500 萬美元的增量臨時供應鏈成本的影響。

The reported operating margin of 7.6% included the gain from the sale of Keds, partially offset by reorganization costs. Adjusted diluted earnings per share for the quarter were $0.09 and $0.12 on a constant currency basis. The reported diluted earnings per share of $0.23 reflects a gain on the sale of the Keds brand. Inventory for the ongoing business was $726 million and improved $19 million compared to Q4 2022.

報告的 7.6% 營業利潤率包括出售 Keds 的收益，部分被重組成本抵消。按固定匯率計算，本季度調整後的攤薄每股收益分別為 0.09 美元和 0.12 美元。報告的 0.23 美元攤薄後每股收益反映了出售 Keds 品牌的收益。正在進行的業務的庫存為 7.26 億美元，與 2022 年第四季度相比增加了 1900 萬美元。

The first quarter was a good start to the year, and we achieved nearly all of our short-term objectives. We fully appreciate the importance of operational discipline, cost control and cash flow in this volatile environment. and we have made important improvements in all areas. Brendan mentioned some of the benefits being driven by the profit improvement office. But I want to emphasize the great work this team is doing to accelerate and crystallize cost savings as a fundamental part of strengthening the foundation of the company. We remain confident in our ability to deliver $150 million in profit improvements in 2024, in support of our 12% operating margin target.

第一季度是今年的良好開端，我們幾乎實現了所有短期目標。我們充分認識到在這種多變的環境中運營紀律、成本控制和現金流的重要性。我們在所有領域都取得了重要的進步。布倫丹提到了利潤改善辦公室帶來的一些好處。但我想強調這個團隊在加速和具體化成本節約方面所做的出色工作，這是加強公司基礎的基本部分。我們仍然相信我們有能力在 2024 年實現 1.5 億美元的利潤改善，以支持我們 12% 的營業利潤率目標。

Let me transition to our 2023 outlook for the full year. Our guidance reflects the expected performance of our ongoing business, which excludes the full year projections for Keds and Wolverine Leathers and adjust for the licensing transition for Hush Puppies expected in July. Like many other companies in our industry, we have seen some deterioration in market trends since the start of the year and especially since early March. Macroeconomic concerns and a cold spring selling season have impacted consumer demand. Despite this added pressure, we believe the diversity of our portfolio and global reach will help to mitigate the risks ahead of us. As a result, we are reaffirming our outlook for revenue, earnings and year-end inventory.

讓我過渡到我們的 2023 年全年展望。我們的指引反映了我們正在進行的業務的預期表現，其中不包括 Keds 和 Wolverine Leathers 的全年預測，並針對預計在 7 月進行的 Hush Puppies 許可過渡進行了調整。與我們行業中的許多其他公司一樣，自今年年初以來，尤其是自 3 月初以來，我們看到市場趨勢有所惡化。宏觀經濟擔憂和寒冷的春季銷售季節影響了消費者需求。儘管壓力增加，但我們相信我們投資組合的多樣性和全球影響力將有助於減輕我們面臨的風險。因此，我們重申了對收入、收益和年終庫存的展望。

Revenue from our ongoing business is expected in the range of $2.53 billion to $2.58 billion, constant currency growth of approximately 1% to 3%. Adjusted gross margin is expected to be approximately 42%. Adjusted operating margin is expected to be approximately 8.5%. Adjusted diluted earnings per share is expected in the range of $1.40 to $1.60 compared to $1.37 in 2022.

我們正在進行的業務的收入預計在 25.3 億美元至 25.8 億美元之間，貨幣增長率約為 1% 至 3%。調整後的毛利率預計約為 42%。調整後的營業利潤率預計約為 8.5%。調整後的攤薄每股收益預計在 1.40 美元至 1.60 美元之間，而 2022 年為 1.37 美元。

Year-end inventory is expected to improve by approximately $225 million. Operating free cash flow is expected to be at least $200 million and year-end debt leverage is expected to be approximately 2x.

年底庫存預計將增加約 2.25 億美元。運營自由現金流預計至少為 2 億美元，年底債務槓桿率預計約為 2 倍。

Now let me provide our outlook for the second quarter, which reflects the performance of our ongoing business and excludes Keds and Wolverine Leathers. For reference, the second quarter 2022 revenue for these businesses was approximately $40 million, and the EPS contribution was $0.02. We expect Q2 revenue of approximately $580 million, a decline of approximately 13.7%. This estimate reflects the challenging trading conditions that persist in the market, both at wholesale and in our DTC channels. Some retailers are still working through elevated inventory levels and most are managing the flow of goods conservatively.

現在讓我提供我們對第二季度的展望，它反映了我們正在進行的業務的表現，不包括 Keds 和 Wolverine Leathers。作為參考，這些業務 2022 年第二季度的收入約為 4000 萬美元，每股收益貢獻為 0.02 美元。我們預計第二季度收入約為 5.8 億美元，下降約 13.7%。這一估計反映了市場上批發和我們的 DTC 渠道中持續存在的具有挑戰性的交易條件。一些零售商仍在努力應對高庫存水平，大多數零售商都在保守地管理貨物流動。

In addition, it's worth noting that Q2 2022 was a record revenue quarter for the company that benefited from a shift in sales out of Q1 because of significant Vietnam factory closures and delays experienced last year. We expect Q2 gross margin of approximately 41% and operating margin of approximately 6%, including $23 million of transitory inventory costs. We expect adjusted diluted earnings per share of approximately $0.20 for the second quarter, which includes a negative $0.02 impact from foreign currency exchange rates.

此外，值得注意的是，2022 年第二季度是該公司創紀錄的收入季度，這得益於去年越南工廠大量關閉和延誤導致銷售從第一季度轉移。我們預計第二季度的毛利率約為 41%，營業利潤率約為 6%，其中包括 2300 萬美元的臨時庫存成本。我們預計第二季度調整後的攤薄每股收益約為 0.20 美元，其中包括外幣匯率帶來的 0.02 美元負面影響。

Briefly looking beyond the second quarter, let me share some insights related to the back half of the year. Given the revenue performance now expected for the first half of the year, revenue for the second half is estimated to approach 55% of the annual total, which is consistent with more normal pre-pandemic phasing.

簡要回顧第二季度之後，讓我分享一些與下半年相關的見解。鑑於目前預計上半年的收入表現，下半年的收入預計將接近全年總收入的 55%，這與大流行前更正常的階段一致。

As we discussed in February, gross margin and operating margin improved significantly in the back half of the year as transitory inventory costs received and the benefits of our profit improvement efforts increased sequentially. We also expect our inventory levels to continue to improve each quarter in the second half.

正如我們在 2 月份討論的那樣，毛利率和營業利潤率在下半年顯著改善，因為收到了暫時性庫存成本，並且我們的利潤改善措施帶來的收益環比增加。我們還預計我們的庫存水平將在下半年每個季度繼續改善。

In conclusion, we are successfully navigating a tough environment and making fundamental improvements to the business along the way. While difficult, the choices we are making to simplify and clarify our brand portfolio, including the recent Sperry announcement, will allow us to lean into our brand and category strength. Ongoing changes to our supply chain processes and technology platforms are making us more nimble and accurate. Profit improvement and inventory initiatives are on track, and we are creating capacity to invest in our highest priorities in 2024.

總之，我們成功地度過了艱難的環境，並在此過程中對業務進行了根本性改進。儘管困難重重，但我們為簡化和澄清我們的品牌組合所做的選擇，包括最近的 Sperry 公告，將使我們能夠依靠我們的品牌和品類實力。我們供應鏈流程和技術平台的持續變化使我們更加靈活和準確。利潤改善和庫存計劃正在按計劃進行，我們正在創造能力以在 2024 年投資於我們最優先考慮的事項。

Thank you to the entire Wolverine team for their ongoing commitment to the changes we are driving at the company.

感謝整個 Wolverine 團隊對我們在公司推動的變革的持續承諾。

I'll now turn the call back to the operator.

我現在將電話轉回給接線員。

(Operator Instructions) The first question we have is from Abbie Zvejnieks from Piper Sandler.

（操作員說明）我們的第一個問題來自 Piper Sandler 的 Abbie Zvejnieks。

So can you just talk about first your decision to pursue a sale of the Sperry business? I think the previous philosophy was kind of to get the brand in a better position before you sold it. So are we there yet? And obviously, the Sperry decline has been a drag on top line. But is there any color you can give us on the profitability of the business and the potential impact on the P&L?

那麼，您能先談談您決定出售 Sperry 業務嗎？我認為以前的理念是在出售之前讓品牌處於更好的位置。那我們到了嗎？顯然，斯佩里的下滑拖累了營收。但是，關於業務的盈利能力和對損益表的潛在影響，您能給我們一些顏色嗎？

Thanks, Abbie. We're exploring all options. So it could be a sale, it could be a JV, could be a licensing. I mean we're just starting this process. But I think that fundamentally, it goes back to the corporate strategy work that we've been doing over 1.5 years -- for over 1.5 years, and including the segmenting of our businesses in Active, Work and Lifestyle and really focusing on the active brands, Merrell, Saucony and Sweaty Betty to be our growth engines and work to support that.

謝謝，艾比。我們正在探索所有選項。所以它可以是出售，可以是合資，也可以是許可。我的意思是我們才剛剛開始這個過程。但我認為，從根本上說，這可以追溯到我們 1.5 年多來一直在做的企業戰略工作——超過 1.5 年，包括我們在活躍、工作和生活方式方面的業務細分，並真正專注於活躍品牌、Merrell、Saucony 和 Sweaty Betty 成為我們的增長引擎，並努力支持這一點。

And as we look towards 2024 and the great work the profit improvement office is doing to free up investment dollars while hitting our profit margins, it just became apparent that Sperry was going to continue to require investment that was going to take away from where we think the upside is. And so it's certainly a very difficult decision because as I've said, it's the brand I most -- that most resonated with me when I joined here, but I think it just became apparent to all of us that we should start this process and much like Keds look for a result that's best for the company and also best for the brand.

當我們展望 2024 年以及利潤改善辦公室正在做的偉大工作以釋放投資資金同時達到我們的利潤率時，很明顯 Sperry 將繼續需要投資，這將帶走我們認為的地方好處是。因此，這當然是一個非常艱難的決定，因為正如我所說，這是我加入這裡時最讓我產生共鳴的品牌，但我認為我們所有人都清楚我們應該開始這個過程並且就像 Keds 尋找最適合公司和品牌的結果一樣。

On the sort of impact to the business, and certainly correct in saying it's been a drag on revenue growth over the last couple of years. At the same time, given those challenges in the market and the distribution kind of profile of that business, the operating margin for this business is below what we would require of a brand like this. So it's also been dilutive to that operating margin performance over time.

關於對業務的影響，並且在過去幾年中拖累收入增長的說法當然是正確的。與此同時，考慮到市場上的這些挑戰和該業務的分銷情況，該業務的營業利潤率低於我們對此類品牌的要求。因此，隨著時間的推移，它也會稀釋營業利潤率表現。

Last thing I'll say is, and Brendan mentioned it, it's just that we've made such great progress and quick work on Keds in that transition. Being able to get that behind us in such a quick time frame really allowed us to move on to this important next step. So the timing it has worked in respect to that because of our success on the Keds transaction.

我要說的最後一件事是，Brendan 提到了這一點，只是我們在過渡期間在 Keds 上取得瞭如此巨大的進步和快速的工作。能夠在如此短的時間內將其拋在腦後，確實讓我們能夠繼續這一重要的下一步。由於我們在 Keds 交易上的成功，因此它在這方面發揮了作用。

Got it. That makes sense. Just one more. Can you just talk about the wholesale partner behavior that you're seeing in the current environment? And I mean you gave some 2Q guidance. But I guess, what level of caution are you seeing? And then in turn, like what gives you confidence in returning to that growth in the second half?

知道了。這就說得通了。還有一個。您能談談您在當前環境中看到的批發合作夥伴行為嗎？我的意思是你給出了一些 2Q 指導。但我想，你看到什麼程度的謹慎？然後反過來，是什麼讓你有信心在下半年恢復增長？

Yes. I mean we're certainly seeing tremendous caution right now real time. I mean although our at-once orders are up, as we know, they're chasing business. But I think everybody has seen business soften since early March with the weather trends. So definite apprehension that we factored into our guidance, but also starting to see some orders pick up in the back half of the year.

是的。我的意思是我們現在確實看到了極大的謹慎。我的意思是，儘管我們的一次性訂單增加了，但正如我們所知，他們正在追逐業務。但我認為自 3 月初以來，每個人都看到業務因天氣趨勢而走軟。如此明確的擔憂，我們將其納入了我們的指導方針，但也開始看到一些訂單在今年下半年回升。

Our order book, our order coverage is in a very good position to support our back half of the year goals and guidance. And also it gets us to a penetration that's a little bit more historical in terms of a little bit more back-half weighted. But right now, having been out in the market the last few weeks at various industry events, and it seems pretty consistent that people are very cautious in the moment.

我們的訂單簿，我們的訂單覆蓋範圍非常適合支持我們下半年的目標和指導。而且它讓我們的滲透率在後半部分加權方面更具歷史意義。但現在，過去幾週在各種行業活動中進入市場，人們目前非常謹慎，這似乎是一致的。

The next question we have is from Laurent Vasilescu from BNP Paribas.

我們的下一個問題來自法國巴黎銀行的 Laurent Vasilescu。

I just wanted to follow up on Abbie's question with regards to Sperry. I know there's -- you're probably looking at different options. But theoretically, could -- if you sold this business, would the -- is the EPS contribution for this year, I know it's not ex-ed out, but the $1.40, $1.60 just so we can kind of back out the EBITDA implication, is the contribution of Sperry embedded for this year's guidance around $0.07 to $0.10? Does that make sense? And if you sold, if the proceeds, whatever they may be, what would you use those proceeds for? Would you reinvest that in the business? Or would you look to pay down debt?

我只想跟進 Abbie 關於 Sperry 的問題。我知道 - 您可能正在尋找不同的選擇。但從理論上講，如果你賣掉這家公司，會不會 - 是今年的每股收益貢獻，我知道它沒有被剔除，但 1.40 美元，1.60 美元只是為了讓我們可以抵消 EBITDA 的影響， Sperry embedded 對今年指導的貢獻在 0.07 美元到 0.10 美元左右嗎？那有意義嗎？如果你賣了，如果收益，不管它們是什麼，你會用這些收益做什麼？你會把它再投資到企業中嗎？還是您希望償還債務？

The last part of that question is easy. We'll be using any proceeds from any monetization of the business to pay down our debt and continue to drive that leverage down to the levels that we are targeting. As far as the contribution to overall performance, it's a little more than $0.10. But again, on an operating margin basis, sort of dilutive to that operating margin rate.

這個問題的最後一部分很簡單。我們將使用任何業務貨幣化的任何收益來償還我們的債務，並繼續將槓桿率降低到我們的目標水平。就對整體性能的貢獻而言，它略高於 0.10 美元。但同樣，在營業利潤率的基礎上，有點稀釋了營業利潤率。

So -- but also just important to know that as we move forward with these different options, we'll just be evaluating how the simpler portfolio is going to allow us to simplify the infrastructure of the company as well. We've got now 2 important brands that we'll -- we are addressing here in Keds and Sperry. We're still moving forward with our Wolverine Leathers divestiture. So at the end of the day, we're going to be left with a really strong portfolio of Active and Work brands and a much simpler infrastructure supporting those businesses, which will make the cost structure more efficient.

所以——但同樣重要的是要知道，隨著我們推進這些不同的選擇，我們將評估更簡單的產品組合將如何讓我們也簡化公司的基礎設施。我們現在有 2 個重要品牌，我們將在 Keds 和 Sperry 中解決這個問題。我們仍在繼續剝離 Wolverine Leathers。因此，最終，我們將擁有真正強大的 Active 和 Work 品牌組合，以及支持這些業務的更簡單的基礎設施，這將使成本結構更有效率。

Very helpful, Mike. And then my second question, following up is on Merrell and Saucony. It sounds like you're still -- you're reiterating the mid-single-digit growth for both brands for the year. 2Q is a little bit lighter. Was there a shift -- is there a shift between quarters between 1Q, 2Q or into 3Q? And can you maybe just talk a little bit about the state of inventories in the athletic space, what you're seeing? Are they starting to normalize at your retail partners?

非常有幫助，邁克。然後是我的第二個問題，跟進是關於 Merrell 和 Saucony 的。聽起來你仍然 - 你重申今年兩個品牌的中個位數增長。 2Q稍微輕一點。是否有轉變——第一季度、第二季度或第三季度之間的季度之間是否有轉變？你能不能談談你所看到的運動領域的庫存狀況？他們是否開始在您的零售合作夥伴處正常化？

Yes. I think, as I said in my remarks, we definitely saw some cadence shifts from last year with Vietnam being shut down that the comps in Q1 were soft, and we took advantage of that, but a lot of that business shifted to Q2 last year. And so that, combined with the weaker wholesale environment we just talked about is pressured Q2.

是的。我認為，正如我在發言中所說的那樣，我們確實看到了與去年越南關閉後的節奏發生了一些變化，第一季度的競爭很疲軟，我們利用了這一點，但去年很多業務都轉移到了第二季度.因此，再加上我們剛才談到的較弱的批發環境，第二季度面臨壓力。

I think out at retail, our inventories are in good shape. They've really moderated. So I don't see that as a problem for us. I think a lot of retailers are still dealing with their own private brands that is clogging up some of the open to buy. But I think specifically for our brands, we feel like based on how much the flow slowed down in Q4 of last year that we're not over inventoried. I think that's why we're starting to see some orders pick up in back half of the year. And also, I think in the value channel, starting to get some phone calls as they have needs again. So at healthier margins than we would have seen a few months back.

我認為在零售方面，我們的庫存狀況良好。他們真的很溫和。所以我不認為這對我們來說是個問題。我認為很多零售商仍在與他們自己的自有品牌打交道，這正在堵塞一些開放的購買渠道。但我認為特別是對於我們的品牌，我們覺得基於去年第四季度流量放緩的程度，我們沒有庫存過多。我認為這就是我們開始看到今年下半年一些訂單回升的原因。而且，我認為在價值渠道中，開始接到一些電話，因為他們再次有需要。因此，利潤率比我們幾個月前看到的要好。

The next question we have is from Mitch Kummetz from Seaport Research.

我們的下一個問題來自 Seaport Research 的 Mitch Kummetz。

Yes. Mike, on the inventory, you mentioned that you had expected to improve each quarter through the year. Could you be a little bit more specific on that? Is there any way you can kind of give us sort of where you think the inventory kind of goes by quarter on a year-over-year basis? And also, can you give us an update on the $150 million of end of life inventory? I think that was the number at the end of the year. Like where is that now? And I think you basically had orders against that. I'm just hoping maybe a sort of a status update on that and I have a follow-up.

是的。邁克，關於清單，你提到你曾預計全年每個季度都會有所改善。你能更具體一點嗎？你有什麼辦法可以告訴我們你認為庫存按季度同比增長的情況嗎？另外，您能否向我們介紹 1.5 億美元的報廢庫存的最新情況？我想那是年底的數字。比如現在在哪裡？而且我認為你基本上已經收到了反對的命令。我只是希望可能會對此進行某種狀態更新，並且我會進行跟進。

Yes. We actually added a table in the press release, Mitch, that kind of gives some of those quarterly inventory numbers, which should help you answer that question. But you'll see nice sequential improvement every quarter, the biggest quarter from quarter or the biggest improvement in Q3.

是的。我們實際上在新聞稿中添加了一個表格，米奇，它給出了一些季度庫存數字，這應該可以幫助你回答這個問題。但是你會看到每個季度都有很好的連續改進，季度最大的季度或第三季度的最大改進。

On the end-of-life inventory, that's -- we did a large shipment or tranche of shipments in the first quarter and some additional here yet in the second quarter. There'll be a little bit of that, that will ship out in Q3. But I would say the vast majority of that end-of-life product would be kind of out of the inventory and out of the warehouses by the end of the second quarter.

關於報廢庫存，那是——我們在第一季度進行了大量發貨或分批發貨，第二季度還進行了一些額外發貨。會有一些，將在第三季度發貨。但我要說的是，到第二季度末，絕大部分報廢產品都會從庫存和倉庫中消失。

Okay. And then my follow-up, I apologize for missing that table in the press release. But the table that I did see were the ones on the transitory expenses and then the profit improvement savings. So it looks like some of the timing there has shifted, particularly on the gross profit side and the transfer expense. It looks like some of that's getting kind of pushed out a little bit from 2Q to 3Q. And then also on the profit improvement side, it looks like maybe some of the benefits on gross profit are accelerating or at least moving forward. So can you talk a little bit about some of those shifts?

好的。然後是我的後續行動，對於在新聞稿中遺漏了那張表格，我深表歉意。但我確實看到的表格是關於臨時費用的表格，然後是利潤改善儲蓄的表格。所以看起來有些時間已經發生了變化，特別是在毛利方面和轉移費用方面。看起來其中一些從 2Q 到 3Q 有點被推出了。然後在利潤改善方面，看起來毛利潤的一些好處正在加速或至少向前發展。那麼你能談談其中的一些轉變嗎？

Sure. Yes. On the transitory costs, I mean, a lot of that, as you know, we came into the year with those costs and their inventory-related costs. So they flow through the P&L when we get inventory shipped. And so given some of the softer expectations for Q2 in terms of timing of shipments, some of those shipments are shifting into Q3. And so the transitory cost expense just shifts at the same time. So overall, our outlook for the benefit from that and the timing of that is still intact. The estimates overall really haven't changed. It's just the phasing of timing.

當然。是的。關於暫時性成本，我的意思是，很多，如你所知，我們進入了這一年，這些成本及其與庫存相關的成本。因此，當我們運送庫存時，它們會流經損益表。因此，鑑於在出貨時間方面對第二季度的一些較弱預期，其中一些出貨量正在轉移到第三季度。因此，暫時性成本費用會同時發生變化。所以總的來說，我們對從中受益的前景和時機仍然完好無損。總體估計確實沒有改變。這只是時間的階段性。

And then on the profit improvement initiatives, just the ability to kind of secure those benefits a little earlier than we had expected, not necessarily more for the full year. But just being able to crystallize those earlier, just kind of what's driving some of that earlier benefit that you're calling out. And obviously, next quarter, we might see a slight phasing change again as all of this stuff is dependent on a number of different factors that drive the timing of expense and the benefits.

然後在利潤改善計劃方面，只是能夠比我們預期的更早一點獲得這些收益的能力，不一定比全年更多。但是，只要能夠更早地將這些具體化，就可以推動您所呼籲的早期收益。顯然，下個季度，我們可能會再次看到輕微的階段性變化，因為所有這些都取決於許多不同的因素，這些因素會推動支出和收益的時間安排。

The next question we have is from Dana Telsey from Telsey Group.

我們的下一個問題來自 Telsey Group 的 Dana Telsey。

As you think about the second quarter and maintaining the guidance, the back half of the year, when you think about the profit improvement initiatives that are taking effect, how do you parse out the revenue expectation versus the margin expectation? Any more color you can put to that? And then, Brendan, any updates on Sweaty Betty and what you're seeing there, given leadership changes, where you are on that state and how that business is doing?

當您考慮第二季度並維持今年下半年的指導時，當您考慮正在生效的利潤改善計劃時，您如何解析收入預期與利潤率預期？您可以添加更多顏色嗎？然後，Brendan，關於 Sweaty Betty 的任何更新以及您在那裡看到的內容，考慮到領導層的變化，您在那個州的位置以及該業務的表現如何？

Yes. Thanks, Dana. I'll start with Sweaty Betty. We've seen a real pickup over the last 4 or 5 weeks in their performance, which is really encouraging as they've had new deliveries hit the floor. And I think it also speaks to when we're able to control the presentation through stores and e-commerce. We're able to get credit right away for that new product. So it's been really good to see the last 4 or 5 weeks at Sweaty Betty.

是的。謝謝，達娜。我將從汗流浹背的貝蒂開始。在過去的 4 或 5 週內，我們看到他們的表現有了真正的回升，這真的很令人鼓舞，因為他們已經有新的交付品上架。我認為這也說明了我們何時能夠通過商店和電子商務來控制展示。我們能夠立即獲得該新產品的信用。所以很高興在 Sweaty Betty 看到最後 4 或 5 週。

And in terms of the leadership change, Julie is still there. She has another month or so before she relocates back to the U.S. with her family. But she and Isabel Soriano, our Head of International, are partnering very closely. And so I think I said -- I think I alluded to the -- it's really been a very positive movement in terms of having them report up to International. I think that they were a little bit isolated on their own being integrated into Wolverine without that kind of direct connection. So it's been nothing but positive and allowing us to look for synergies to gain efficiencies in the business by utilizing our International team that ultimately we can reinvest back into the Sweaty Betty business, but some real positive signs there. And we're in the final stages of naming a new brand leader report up to Isabel. So excited about that.

而在領導層變動方面，朱莉依舊在。她還有一個月左右的時間才能與家人一起搬回美國。但她和我們的國際主管伊莎貝爾索里亞諾正在密切合作。所以我想我說過——我想我提到了——就讓他們向國際報告而言，這確實是一個非常積極的運動。我認為他們在沒有那種直接聯繫的情況下被整合到金剛狼中有點孤立。因此，這只不過是積極的，讓我們能夠通過利用我們的國際團隊尋求協同效應來提高業務效率，最終我們可以重新投資回 Sweaty Betty 業務，但那裡有一些真正的積極跡象。我們正處於為伊莎貝爾命名新品牌領導者報告的最後階段。對此很興奮。

Mike, you can comment.

邁克，你可以發表評論。

Yes. I think the question was just on like the sequencing or the phasing of the gross margin. Get slightly better in the second quarter as we guided to. A lot of that has to do with both the timing of the transitory costs, but the amount of end-of-life product that we're shipping in the mix.

是的。我認為問題只是關於毛利率的排序或分階段。按照我們的指導，在第二季度略有好轉。這在很大程度上與暫時性成本的時間有關，也與我們運送的報廢產品的數量有關。

In the back half of the year, Dana, we'd expect gross margins to approach 43% really in both quarters. So really strong improvement from all the factors we've talked about leading into the year, not the least of which obviously is the profit improvement, timing and improved cost structure, freight cost improvements and then just a better mix of business, healthier mix of business in the back half of the year. So all of those things are still on track and gave us confidence to keep our margin outlook intact.

在今年下半年，Dana，我們預計兩個季度的毛利率都將接近 43%。從我們談到的進入今年的所有因素來看，確實有很大的改善，其中最重要的顯然是利潤改善、時間安排和成本結構改善、貨運成本改善，然後是更好的業務組合，更健康的業務組合下半年的生意。因此，所有這些事情仍在軌道上，讓我們有信心保持我們的利潤率前景不變。

Got it. And any more color on the DTC channel?

知道了。 DTC 頻道還有更多顏色嗎？

Yes. I mean, the DTC channel has been tough. It's definitely slowed down since early March. So that's influencing our Q2 guidance. That being said, we know last year, business slowed down around end of May, early June. And so we have some softer comps that we start to anniversary across the business. So along with some of the new product launches that we'll be launching, I think the trends will get better. But certainly, the last 4 or 5 weeks have been challenging.

是的。我的意思是，DTC 渠道一直很艱難。自 3 月初以來，它的速度肯定有所放緩。所以這影響了我們的第二季度指導。話雖這麼說，我們知道去年，業務在 5 月底、6 月初前後放緩。因此，我們有一些更軟的組合，我們開始在整個企業周年紀念日。因此，隨著我們將推出的一些新產品發布，我認為趨勢會變得更好。但可以肯定的是，過去 4 或 5 週充滿挑戰。

(Operator Instructions) Next question we have is from Sam Poser with Williams Trading.

（操作員說明）我們的下一個問題來自 Sam Poser 和 Williams Trading。

I've got 2. One, you talked about the year-over-year increases you're expecting by brand for the quarter and for the year, but we don't -- we have the year, but we don't have the quarters by brand from '22. Could you give them to us? Or could you tell us by -- for the second quarter by segment, sort of how you're thinking about Active, Work, Lifestyle and so on?

我有 2. 第一，你談到了你對本季度和今年品牌的同比增長的預期，但我們沒有 - 我們有一年，但我們沒有從 22 年開始按品牌劃分的宿舍。你能把它們給我們嗎？或者你能告訴我們——對於第二季度的細分市場，你是如何看待積極的、工作的、生活方式等的？

Yes. Sam, this is Alex. We have those stats in the IR deck. I can send that to you real quickly, so it's right at hand. But we laid that all out for 2022 and 2021 by quarter by the brands that we disclosed. So it's all there.

是的。山姆，這是亞歷克斯。我們在 IR 平台上有這些統計數據。我可以很快把它發給你，所以它就在手邊。但我們按披露的品牌按季度列出了 2022 年和 2021 年的所有情況。所以一切都在那裡。

I was looking for it in the Q. Sorry about that. Okay. And then, Mike, do you anticipate that the gross -- historically, the gross margin has been higher in Q4 because of mix than it has been in Q3. And just sort of looking at the way you're guiding Q2, do you anticipate that, that will continue and the big year-over-year pop in gross margin, not only will be higher in the fourth quarter, but also that gross margin number will be significantly higher in the fourth quarter? You said approaching 43%, but it probably needs to be higher than that.

我正在 Q 中尋找它。對此感到抱歉。好的。然後，邁克，你是否預計毛利率 - 從歷史上看，第四季度的毛利率由於混合而高於第三季度。看看你指導第二季度的方式，你是否預計這種情況會持續下去，毛利率同比大幅增長，不僅第四季度會更高，而且毛利率也會更高第四季度的數字會明顯更高嗎？你說接近 43%，但可能需要更高。

In the fourth quarter, it will be a little bit stronger. A lot of moving parts, as you know, though. This is just not a normal year because of the timing of some of these incremental benefits that are flowing through. So we're getting some of those more prominently in the third quarter, but the mix is better in the fourth quarter, so it balances things out a little bit.

第四節，會強一點。但是，如您所知，有很多活動部件。今年不是正常的一年，因為其中一些增量收益正在流動。所以我們在第三季度更加突出了其中一些，但第四季度的組合更好，所以它平衡了一點。

But directionally, what you're saying is right, Sam. We would expect fourth quarter to be a strong gross margin quarter because it's a quarter where our direct-to-consumer business is heaviest in the mix. And obviously, Sweaty Betty has a big impact on that mix in Q4.

但在方向上，你說的是對的，山姆。我們預計第四季度將是一個強勁的毛利率季度，因為這是我們直接面向消費者業務最重的一個季度。顯然，Sweaty Betty 對第四季度的組合產生了重大影響。

Just one last thing there. I mean do you expect -- you said around 43%, but based on the guidance you gave for Q2, it's got to be sort of like approaching 44%. So do you have a -- is there a 44% handle on either quarter? Do you foresee that? Or is it sort of high 43s?

最後一件事。我的意思是你預計 - 你說大約 43%，但根據你為第二季度提供的指導，它必須接近 44%。那麼你有沒有 - 兩個季度有 44% 的處理嗎？你預見到了嗎？或者它有點高 43s？

Yes. It's in the range that I disclosed.

是的。在我透露的範圍內。

The next question we have is from Jim Duffy from Stifel.

我們的下一個問題來自 Stifel 的 Jim Duffy。

I'm going to start with an observation. I'm just shocked that Sam and Mitch aren't reviewing the releases more carefully. Those 2, in particular, are always so good at that. It's really out of character for them.

我將從一個觀察開始。我只是對 Sam 和 Mitch 沒有更仔細地審查發行版感到震驚。尤其是那兩個，總是那麼擅長。這對他們來說真的很不合時宜。

Noted.

著名的。

A few questions on Sperry for me. First, is this an easy lift from the portfolio? Or are there dissynergies that we should be considering with respect to the financials?

關於 Sperry 的幾個問題。首先，這是從投資組合中輕鬆提升的嗎？或者在財務方面是否存在我們應該考慮的不協調因素？

I mean I wouldn't say it's easy. Obviously, this was mostly a hard decision, but I think as -- along with Keds, it gives us more clarity in terms of how we can optimize the expenses and Hush Puppies is really fully licensed now. So that's in a very profitable model. So we're learning from the Keds divestiture, how this goes. And as we said earlier, we don't know what shape this will take, whether it be a sale or JV or licensing. So that will -- a lot of that will depend on what we ultimately do.

我的意思是我不會說這很容易。顯然，這主要是一個艱難的決定，但我認為 - 與 Keds 一起，它讓我們更清楚地了解我們如何優化開支，而且 Hush Puppies 現在真的獲得了完全許可。所以這是一個非常有利可圖的模式。所以我們正在從 Keds 資產剝離中學習，這是怎麼回事。正如我們之前所說，我們不知道這將採取什麼形式，無論是出售、合資還是許可。所以這將 - 很多將取決於我們最終做什麼。

But you know this very well, Jim, knowing how we've operated the business. And we've said for a year now, our ability to focus, prioritize and invest on the right things beyond the cost structure and sort of direct Sperry implications to the P&L is the ability to really emphasize our resources on those opportunities.

但你非常了解這一點，吉姆，知道我們是如何經營業務的。我們已經說了一年了，我們能夠專注、優先考慮和投資於正確的事情，而不是成本結構和 Sperry 對 P&L 的直接影響，這是能夠真正強調我們在這些機會上的資源的能力。

And so I mean that's going to put more pressure on our Active and Work Group to deliver more consistent growth but also to be able to invest behind that in a more productive way than we've been able to do before. So that's -- to me, that's an important unlock for this decision, and Brendan mentioned it before, but I think it's worth repeating that.

所以我的意思是，這將給我們的 Active and Work Group 帶來更大的壓力，以實現更一致的增長，同時也能夠以比我們以前能夠做到的更有成效的方式對其進行投資。所以對我來說，這是這個決定的一個重要解鎖，Brendan 之前提到過，但我認為值得重複一遍。

Helpful. And I recognize it may be difficult to get too specific here, but just thinking about the Sperry infrastructure. If Sperry goes, do you -- I mean, do you need a Boston headquarters? That seems a glaring area for cost savings opportunity. It's just the Saucony brand, if I'm right, operating out of that if you no longer have Sperry.

有幫助。我承認這裡可能很難說得太具體，但只是考慮 Sperry 基礎設施。如果 Sperry 離職，你是否——我的意思是，你需要一個波士頓總部嗎？這似乎是節省成本機會的一個明顯領域。這只是 Saucony 品牌，如果我是對的，如果您不再擁有 Sperry，就可以從中運營。

All of the options that we have to look at yet and consider will be driven off of the ultimate choice that we make. So it's premature to make that conclusion. But I mean there are examples like that across the global infrastructure for the company where depending on the alternative that we choose, I think we're going to be able to create a much more efficient and much more streamlined cost structure and support system.

我們必須考慮和考慮的所有選項都將脫離我們做出的最終選擇。所以現在下這個結論還為時過早。但我的意思是，在公司的全球基礎設施中有這樣的例子，根據我們選擇的替代方案，我認為我們將能夠創建一個更高效、更精簡的成本結構和支持系統。

Fair enough. And Mike, you mentioned the second half, 55% of the revenue guide, which is more typical seasonality. Historically, earnings weighting has been more aligned with revenue in the fiscal '23 guide in place of second half more like 80% of the annual earnings power. Clearly, there's some impediment to margin in the first half of the year. But is it right way to think about that, that your run rate in the second half of the year is representative of your annual earnings power on a go-forward basis?

很公平。邁克，你提到下半年，55% 的收入指南，這是更典型的季節性。從歷史上看，收益權重與 23 財年指南中的收入更加一致，而不是下半年更接近年度盈利能力的 80%。顯然，今年上半年的利潤率存在一些障礙。但考慮一下，你下半年的運行率代表你未來的年度盈利能力是否正確？

I think that's right, yes. No, no, for sure. But in the back half of the year, I think we're going to -- I think the back half of 2023 is going to be representative of how the business will cycle into 2024. And we're going to sequentially see those improvements each quarter. But I think as we've discussed here, the timing of some of these extra costs and the phasing of some of the profit improvement make the quarterly phasing of earnings very distorted. But as we get into the back half of the year, I think you're going to see a much more normalized cost structure, a much more normalized operating margin performance and with still opportunities, obviously, as we go into '24 to get the incremental benefits that we've talked about from the profit improvement office.

我認為是的，是的。不，不，當然。但在今年下半年，我認為我們將 - 我認為 2023 年下半年將代表業務將如何循環到 2024 年。我們將依次看到這些改進四分之一。但我認為，正如我們在這裡討論的那樣，其中一些額外成本的發生時間和部分利潤改善的階段性使得收益的季度階段性非常扭曲。但隨著我們進入下半年，我認為你會看到一個更加規範化的成本結構，一個更加規範化的營業利潤率表現，並且顯然，隨著我們進入 24 世紀，我們仍然有機會獲得我們從利潤改善辦公室談到的增量收益。

This year, we're going to get $65 million of savings that are all embedded in the '23 guidance. And next year, the full year run rate for that will be $150 million. So a meaningful incremental amount of savings that all support next year's operating margin target.

今年，我們將節省 6500 萬美元，這些都包含在 '23 指南中。明年，全年運行率將達到 1.5 億美元。因此，有意義的增量節省都可以支持明年的營業利潤率目標。

I think what's energizing for me and the team is these transitory costs that will go -- that are going away as we get to the back half of the year and certainly into '24. And as Mike said, all the work that profit improvement office has done, which I couldn't be more enthusiastic about the progress we're making there and the ability that gives us to deliver the targets we've discussed but also have real investment dollars that we can invest back into our brands as we focus the business.

我認為對我和團隊來說，讓我和團隊充滿活力的是這些暫時的成本將會消失——隨著我們進入今年下半年，肯定會進入 24 年，這些成本將會消失。正如邁克所說，利潤改善辦公室所做的所有工作，我對我們在那裡取得的進展以及使我們能夠實現我們討論過的目標但也有實際投資的能力充滿熱情當我們專注於業務時，我們可以將這些美元重新投入到我們的品牌中。

The next question we have is from Mauricio Serna from UBS.

我們的下一個問題來自瑞銀的 Mauricio Serna。

Great. I wanted to ask about the first quarter. If you could talk about the exit rate on the direct-to-consumer channel? And what do you expect, like in terms of like the guidance, the sales guidance for the year, what does that imply for growth across both channels for the second half of the year? And then on inventories, could you talk maybe a little bit more about any pockets where you believe there's more work to be done than others in terms of bringing it to more normalized level? Should we expect 3Q inventory growth to be in line with sales growth based on the commentary you provided priorly?

偉大的。我想問一下第一季度。您能否談談直接面向消費者渠道的退出率？您對今年的銷售指導有何期待，這對下半年兩個渠道的增長意味著什麼？然後在庫存方面，您能否多談談您認為在將庫存提高到更正常化水平方面比其他人需要做更多工作的任何口袋？根據您之前提供的評論，我們是否應該預期第三季度庫存增長與銷售增長一致？

Regarding DTC, as I said, we've seen a slowdown over the last few weeks, but as we get later on into the quarter and really into Q3, that's when we start to anniversary the slowdown from last year when some of these macro headwinds started to show themselves where inventory really started to pile up and the promotions happen. So we certainly feel like the back half of the year provides more potential upside in terms of trend in our direct-to-consumer business.

關於 DTC，正如我所說，我們在過去幾週看到了放緩，但隨著我們進入本季度晚些時候並真正進入第三季度，那是我們開始慶祝去年放緩的周年紀念日，當時一些宏觀逆風開始展示自己真正開始堆積庫存和促銷活動的地方。因此，我們當然覺得今年下半年在我們直接面向消費者的業務趨勢方面提供了更多潛在的上升空間。

Last year, at this time, we were working through and planning for the inventory flow-through, and we didn't have a lot of new product in the back half of the year to drive our DTC business. So that's another important variable and a positive for 2023.

去年這個時候，我們正在為庫存流通做準備，下半年我們沒有很多新產品來推動我們的 DTC 業務。所以這是另一個重要變量，對 2023 年是積極的。

On the inventory side, I'd say in terms of where we're a little heavier on inventory, it's in the areas where the business has been the softest. So with Sperry, we have a little more inventory in that business than we would like. But overall, we're working through the inventory right on schedule.

在庫存方面，我想說的是我們的庫存稍微重一點，這是在業務最疲軟的領域。因此，對於 Sperry，我們在該業務中的庫存比我們想要的要多一些。但總的來說，我們正在按計劃完成庫存。

Our inventories at the end of the third quarter will actually be down over 30% year-over-year. And so obviously, much different than what we expect our growth rates to be, but obviously working off of elevated inventory. So that's the progress that we're seeing as we -- not only as we sell through the core inventory that we own today, work through the end-of-life inventory, but we've obviously adjusted our supply chain and the inflow of new product on core merchandise in the back half of the year to get the inventories rightsized by the end of the year.

我們在第三季度末的庫存實際上將同比下降 30% 以上。很明顯，這與我們預期的增長率有很大不同，但顯然是在庫存增加的情況下進行的。所以這就是我們所看到的進步——不僅是因為我們通過我們今天擁有的核心庫存進行銷售，通過報廢庫存進行工作，而且我們顯然已經調整了我們的供應鍊和流入下半年在核心商品上推出新產品，以在年底前完成庫存調整。

Thank you. There are no further questions at this time. I would now like to turn the floor back over to Brendan Hoffman for closing comments. Please go ahead.

謝謝。目前沒有其他問題。我現在想把發言權交還給 Brendan Hoffman，請他發表結束評論。請繼續。

Well, thank you, everyone, for joining us today. We look forward to discussing our Q2 results with you in August. Have a good day.

好吧，謝謝大家今天加入我們。我們期待在 8 月與您討論我們的第二季度業績。祝你有美好的一天。

Thank you, sir. Ladies and gentlemen, that then concludes today's conference. Thank you for joining us. You may now disconnect your lines.

謝謝你，先生。女士們，先生們，今天的會議到此結束。感謝您加入我們。您現在可以斷開線路。