Companies

Wolverine Worldwide inflects to growth

Feb 25, 2025 United States

The US-based outdoor company has reported better-than-expected fourth quarter and full year results, as a result of a successfully implemented turnaround strategy

“A year ago, we outlined an ambitious turnaround strategy composed of three chapters: stabilization, transformation, and inflection. We shared a plan to meaningfully strengthen the Company's balance sheet, expand profitability, and sequentially improve revenue trends – culminating with an inflection to growth in the final quarter of 2024. I’m pleased to report that we accomplished all of these objectives. In the fourth quarter, we exceeded our expectations for revenue and earnings and inflected to growth as a Company – delivering better-than-anticipated results for 2024”, commented Chris Hufnagel, President and Chief Executive Officer of Wolverine Worldwide.

Fourth Quarter Results

In the quarter that ended on the 28^th of December 2024, the company reported a total revenue of 494.7 million US dollars, a 6.1% decline (or 5.8% in constant currency basis), as compared to the same period of 2023. However, ongoing revenue reached 494.7 million, reflecting a 3.0% increase (or 3.3% in constant currency basis), as compared to the same period of 2023.

During the fourth quarter, Merrell’s revenue was 163.4 million US dollars, up by 1.0% on both a reported and a constant currency basis, Wolverine’s revenue was 62.4 million US dollars, up by 20.5% on both a reported and a constant currency basis, Saucony’s revenue was 99.6 million US dollars, down by 5.3 or 5.1% on a constant currency basis, and Sweaty Betty’s revenue was 63.4 million US dollars, down by 5.9% or 7.9% on a constant currency basis.

Wolverine’s fourth quarter gross margin improved significantly by 740 basis points to 44.0% from 36.6% in the same period of the prior year, mainly due to lower supply chain costs, product costs and lower sales of end-of-life inventory.

The US-based company reported diluted earnings per share of 0.29 US dollars in the final quarter of fiscal 2024, on a comparable basis to a diluted loss per share of 1.15 US dollars in the same quarter of the previous year.

At the end of the quarter, inventory was 241 million US dollars, down by 133 million US dollars from the previous year and net debt was 496 million US dollars, a 246 million US dollars decrease year-over-year.

Full Year Results

Wolverine Worldwide reported a total revenue of 1.76 billion US dollars, down by 21.8% (or 21.9% on a constant currency basis, as compared to fiscal 2023. Ongoing total revenue decreased by 12.1 (or 12.3% on a constant currency basis), as compared to fiscal 2023.

The company’s full year gross margin improved by 560 basis points to 44.5% from 38.9% in the prior year, and full year diluted earnings per share increased by 213.7% year-over-year to 0.58 US dollars.

Fiscal 2025 Outlook

For fiscal year 2025, Wolverine Worldwide expects revenue to be in the range of 1.795 billion to 1.825 billion US dollars, representing growth of approximately 2.5% to 4.3% over fiscal year 2024 and constant currency growth of approximately 4.7% to 6.5%. Full year diluted earnings per share are also anticipated in the range of 0.95 to 1.10 US dollars.

Image Credits: switchbacktravel.com

United States Footwear Quarter Results Results Wolverine Worldwide, Inc.