Wolverine World Wide said on Thursday revenues declined 23.7% to $527.7 million in the third quarter, on the back of hefty declines across most of the U.S. firm’s brands, except for Sweaty Betty which soared 19%.
The Rockford, Michigan-based company said quarterly revenue from its ongoing business was $519.5 million. The ongoing business excludes the impact of Keds, which was sold in February, the U.S. Wolverine leathers business, sold in August, the non-U.S. Wolverine leathers business, which is currently the subject of a sale process, and reflects an adjustment for the transition of the Hush Puppies North America business to a licensing model in the second half of 2023.
Wolverine said third-quarter international revenue was down 24.4$ to $229 million, while international revenue from the ongoing business was down 22.3% to $221.8 million in the period. DTC revenue was down 14.5% to $136.6 million in the quarter, and down 12.8 percent for the ongoing business compared to the prior-year quarter.
During the third quarter, the company clocked double-digit declines across its portfolio of brands. However, the group saw mid-single-digit declines in the Wolverine brand business, a mid-teens decline in the Saucony business and double-digit growth in the Sweaty Betty brand.
“In the third quarter, we achieved several critical milestones as we took decisive action to stabilize and transform the company while delivering revenue and earnings in line with our expectations,” said Chris Hufnagel, president and CEO of Wolverine World Wide.
“We continued to reshape our portfolio, reduce our inventory, and redesign the company to become consumer-obsessed brand builders – focused squarely on building compelling products and telling amazing stories…While market conditions remain challenging, we’re taking the necessary steps to reinvigorate our brands and position the company for profitable growth as conditions improve. We’re confident in our brands, platforms, and most importantly, our people. We’re executing more boldly and at a greater pace to improve our profitability and enable future investments focused on our biggest growth opportunities – all aimed at delivering greater value for our shareholders.”
Coinciding with the earnings update, Wolverine announced actions to further its ongoing strategic transformation “into a brand-led and consumer-obsessed growth company.”
To date, the company said it has identified initiatives that are expected to deliver $215 million in annual savings, including a global workforce restructuring.
Key changes in connection with redesigning the organisation include: ‘The Collective’, a new strategic center of excellence that includes a reimagined innovation, insights, and trends team; an internal creative and public relations team; and an in-house creative production studio, and ‘global licensing’, a new global licensing function to unlock the portfolio’s full commercial opportunity around the world. This team will oversee and manage all the company’s licensed businesses, including Hush Puppies and Stride Rite, along with apparel and accessories programs.
That’s in addition to the creation of ‘integrated planning’, a new global planning function designed to improve integrated demand, inventory, and supply chain management, while enhancing the company’s ability to respond to shifts in consumer and market dynamics; as well as ‘product lifecycle management and digital product design’, a new set of advanced digital product management, design, and development tools that will further enhance the company’s product capabilities and efficiencies, and a ‘North American commercial structure’, a consolidated North American commercial structure, aligning the company’s Canadian operations with those in the United States to drive efficiency and alignment.
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