Shares of Wolverine Worldwide nudged up under 1 percent Wednesday morning on the news that the footwear company finished 2023 with revenue and earnings that were in line with its guidance, as well as inventory and debt levels that were better than expected, after months of aggressive divestitures and cost cutting measures.
Even still, the Rockford, Mich.-based company reported that revenues in the fourth quarter fell 20.8 percent to $526.7 million versus $665.0 million the same time last year. The company’s international revenue was down 5.1 percent to $267.2 million compared to the prior year, while its direct-to-consumer revenue was down 17.6 percent to $186.9 million compared to the same period last year. Net debt at the end of the quarter was $740 million, down $285 million from the prior year.
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By brand, Merrell reported total revenues of $161.8 million in Q4, down 16.6 percent from $193.9 million the same time last year. At Saucony, revenues in the quarter declined 13.4 percent to $105.1 million versus $121.3 million in Q4 2022. The company’s namesake Wolverine brand was the hardest hit in the period, with revenues down 27.9 percent to $51.8 million versus $71.8 million the same time last year. And Sweaty Betty dipped 7.6 percent in the quarter to $67.3 million versus $72.8 million in the prior year.
As for the full fiscal year 2023, the company saw revenues fall 16.5 percent to $2.24 billion versus $2.68 billion in 2022. By brand, Merrell reported total revenues of $675.8 million for the year, down 11.6 percent from $764.2 million in 2022. At Saucony, revenues for the year dipped 1.9 percent to $495.8 million versus $505.3 million the year prior. The Wolverine brand fell 18.7 percent to $201.2 million in 2023, down from $247.5 million in 2022. And Sweaty Betty dipped 3.6 percent to $203.8 million for the year, down from $211.5 million last year.
Chris Hufnagel, president and chief executive officer of Wolverine Worldwide, said in a statement on Wednesday that the company is “effectively executing” its transformation plan with “great pace” and has largely completed the stabilization phase of the turnaround stage.
“Wolverine Worldwide is a much different company than it was just six months ago, with a healthier balance sheet, enhanced efficiency to deliver higher profit and investment, and a redesigned organizational structure to strengthen our brand-building capabilities,” Hufnagel said. “Our focused portfolio of authentic brands – supported by powerful central platforms – is focused on helping consumers live better lives through performance-led product innovation and design.”
Looking ahead, Wolverine Worldwide is forecasting revenue for full year 2024 to be approximately $1.70 billion to $1.75 billion, representing a decline of approximately 12.2 percent to 14.7 percent compared to 2023. Diluted earnings per share are expected to be between $0.43 and $0.63, and adjusted diluted earnings per share are expected to be between $0.65 and $0.85.
“Going forward, we are accelerating our transformation of the business to ultimately drive an inflection to growth,” Hufnagel added. “Our team is energized by our new vision to become global brand builders, and we are confident in our ability to drive meaningful and sustained shareholder value.”
