Wolverine Worldwide has reported another quarter of better-than-expected sales driven by its Merrell and Saucony labels.
The company’s total revenue decreased 16.6 per cent for the third quarter, marking a sequential improvement compared to the second quarter. Its ongoing revenue, which excluded the impact of the Keds sale last February, fell 7 per cent.
Net debt at the end of the quarter was $563 million, down $373 million compared to the prior year and down $179 million from the prior year-end.
“In the third quarter, we delivered better-than-expected revenue and earnings – led by Merrell and Saucony outpacing our forecast – as we continue to make progress on our plan to turnaround and transform the company for the future,” said Chris Hufnagel, president and CEO of Wolverine Worldwide.
At Merrell, sales improved 1.4 per cent year-on-year, while Saucony posted a 10 per cent decline. This came off the back of a 19.2 per cent drop for Merrell and 28 per cent decrease for Saucony in the second quarter.
Sales of the Wolverine brand slid 12.3 per cent, while Sweaty Betty saw a 3 per cent uplift.
For the full year, the company expects revenue of its ongoing business to be approximately $1.730-$1.745 billion, up from the previous outlook.
“We’re moving forward with a stronger platform for growth – a rationalized portfolio of authentic brands positioned in attractive categories, a much healthier balance sheet with our restructuring and stabilization efforts largely behind us, and finally, a talented, aligned, and motivated team driving the business each day,” said Hufnagel.
