Wolverine Worldwide has reported better-than-expected revenue and earnings and a lower net debt for the first quarter, reflecting the results of the ongoing transformation.
The company’s total revenue decreased 34.1 per cent to $394.9 million, while ongoing total revenue was down 24.5 per cent to $390.8 million.
The ongoing business excludes the impact of Keds, the US Wolverine Leathers business, the non-US Wolverine Leathers business, and the Sperry business, which were sold between February last year and January this year.
Net debt at the end of the quarter was $685 million, down $380 million compared to the prior year. Inventory was $354.3 million, down approximately 51.2 per cent compared to the prior year.
“We delivered better-than-expected revenue and earnings in the first quarter, and we are beginning to see proof points emerge as early validation of our strategy and execution,” said Chris Hufnagel, president and CEO of Wolverine Worldwide.
“We’re executing our turnaround and transformation with pace and continue to make meaningful progress towards realizing the full potential of our brands, platforms, and teams.”
For the full year, the company expects revenue from the ongoing business to be $1.68-1.73 billion, representing a decline of 13.2-15.7 per cent. Net debt at year end is expected to be approximately $565 million, a reduction of $175 million from the prior year end.
