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Sweaty Betty owner, Wolverine Worldwide, has lowered its revenue and earnings outlook as it experienced a decline of 17.4% in revenue to $589.1m (£463.8m) in Q2.
While revenue from the ongoing business was slightly better, it was still down at $578.2m (£455.2m) – a decline of 13.8% on a constant currency basis.
International revenue for Wolverine’s Timberland and Sweaty Betty also declined in Q2, reporting at $260.9m (£205.4m), down 6.7% compared with the prior year.
Direct-to-consumer revenue for the brands was down significantly by 20.3% to $132.4m (£104.2m).
The group has attributed its decline to 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 addition, the group has announced the appointment of Chris Hufnagel as its new president and CEO.
Hufnagel said: “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.
“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.”
