US-based apparel and footwear company Wolverine Worldwide has posted revenue of $589.1 million for the second quarter of fiscal 2023 (Q2 FY23), a decline of 17.4 per cent compared to the prior year, and a 17.3 per cent decline on a constant currency basis. Revenue from the ongoing business was slightly better but still down at $578.2 million, declining 13.8 per cent on a constant currency basis.

The Timberland and Sweaty Betty owner's international revenue from the ongoing business also declined in Q2 FY23, reporting at $260.9 million, down 6.7 per cent compared to the prior year, or 6.2 per cent on a constant currency basis. Direct-to-consumer revenue, which came in at $132.4 million, was down significantly by 20.3 per cent compared to the prior year and down 16.4 per cent for the ongoing business.

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.”