Wolverine charts path with ‘stronger platform’
Better-than-expected sales of Merrell and Saucony boosted third-quarter revenues for parent group Wolverine World Wide, with CEO Chris Hufnagel describing the shake-ups of the past 18 months as “behind it”.
Despite this, revenues in the quarter totalled $440.2 million compared with $528 million in the corresponding period last year.
He said: “We drove another quarter of record gross margin and more than doubled earnings versus last year. Today, we’re moving forward with a stronger platform for growth – a rationalised portfolio of authentic brands positioned in attractive categories, a much healthier balance sheet with our restructuring and stabilisation efforts largely behind us, and a talented, aligned and motivated team.”
Inventory at the end of the quarter was $285.5 million, 50% lower than the prior year. Net debt at the end of the quarter was $563 million, down $373 million compared with the prior year.
The results exclude the impact of Keds, which was sold in February 2023, the US Wolverine Leathers business, which was sold in August 2023, the non-US Wolverine Leathers business, which was sold in December 2023, and the Sperry business, which was sold in January 2024.
