Wolverine Worldwide reports 2023 preliminary results
US shoe group Wolverine World Wide has recently disclosed its preliminary and unaudited financial results for its ongoing business as of December 30, 2023.
As per the report, the company anticipates its reported revenue for the full year and the fourth quarter to be approximately $2.24 billion and $527 million, respectively, a figure that is consistent with its November guidance. It expects full year and fourth-quarter adjusted gross margin to be over 39% and 36%, respectively, which aligns with the previously issued guidance in November.
In addition, the company has provided updates regarding its transformational efforts. The company carried out asset monetisation transactions during the fiscal year 2023 that yielded nearly $250 million in cash, of which $91 million was received in the fourth quarter of 2023. These actions have streamlined the business and facilitated debt reduction.
In the fourth quarter of 2023, it concluded the sale of its Kentucky distribution centre, generating $23 million of cash. The Saucony and Sperry brands will continue to operate from this facility under a lease agreement.
Moreover, various asset monetisation transactions in 2023 generated approximately $227 million in proceeds, as previously announced. These transactions included Keds, Hush Puppies intellectual property in China, Wolverine Leathers, and the new operating model for Merrell and Saucony in China. The company’s progress in pursuing strategic alternatives for the Sperry brand remains on track.
Chief executive, Chris Hufnagel, said: “We are moving forward with tremendous speed in the stabilisation phase of our strategic transformation. We are starting the new year on a stronger footing.”
