Wolverine Worldwide has reported revenue and earnings in line with its previous guidance as the result of the ongoing transformation.
“We are effectively executing our transformation plan with great pace – having largely completed the stabilization phase of our turnaround,” said president and CEO Chris Hufnagel.
The company’s fourth-quarter revenue declined 20.8 per cent year on year to $526.7 million. Revenue from the ongoing business was $521.2 million, representing a 18.4 per cent decrease.
The ongoing business excludes Keds – which was sold last February, the US Wolverine Leathers business – sold in August, the non-US Wolverine Leathers business – sold in December. It also reflects the transition of Hush Puppies North America business to a licensing model last year.
International revenue from the ongoing business was down 3.4 per cent, while direct-to-consumer revenue dropped 15.5 per cent.
Net debt at the end of the quarter was $740 million, down $285 million from the prior year.
“Wolverine Worldwide is a much different company than it was just six months ago, with a healthier balance sheet, enhanced efficiency to deliver higher profit and investment, and a redesigned organizational structure to strengthen our brand-building capabilities,” added Hufnagel.
For the full year, Wolverine posted revenue of $2.242 billion, down 16.5 per cent year on year.
The company expects revenue from the ongoing business to be approximately $1.7 billion to $1.75 billion in FY24, representing a decline of approximately 14.7 to 12.2 per cent. Net debt at year-end is expected to reduce to $575 million.
Founded in 1883, Wolverine Worldwide’s portfolio of brands includes Merrell, Saucony, Sweaty Betty, Hush Puppies, Wolverine, Chaco, Bates, Hytest, and Stride Rite.
