Wolverine Worldwide, despite ending 2023 in the red, expressed confidence in its ongoing transformation plan and anticipated a positive turnaround in the near future. Chris Hufnagel, President and CEO, highlighted the company’s progress in executing its transformation strategy, emphasizing a healthier balance sheet, enhanced efficiency, and a revamped organizational structure.
Fourth Quarter Performance:
- Revenue for the quarter ended December 30, 2023, stood at $526.7 million, marking a decline of 20.8% on a reported basis and 21.3% on a constant currency basis compared to the same period in fiscal 2022.
- The active group, which includes brands like Merrell and Saucony, reported a revenue decline of 14.2% year-over-year to $341.3 million.
- The work group, comprising Wolverine footwear, saw a revenue decrease of 18.9% year-over-year to $125.3 million.
- Gross margin improved to 36.6% due to reduced promotional e-commerce sales and healthier inventory levels.
- The company reported a diluted loss per share of $1.15, compared to $4.59 in the same quarter of the previous year.
Full Year Results:
- Total revenue for fiscal 2023 amounted to $2.24 billion, representing a decrease of 16.5% compared to the prior fiscal year.
- Gross margin contracted to 38.9%, reflecting sales of higher-cost inventory from 2022.
- The company recorded a diluted loss per share of $0.51 for the year, compared to $2.37 in fiscal 2022.
Fiscal 2024 Outlook:
- Wolverine Worldwide anticipates improved profitability in fiscal 2024, driven by recent profit improvement initiatives.
- Revenue is expected to range between $1.70 billion to $1.75 billion, with a gross margin improvement to approximately 44.5%.
Despite challenges, Wolverine Worldwide remains committed to its transformation journey, aiming to leverage cost benefits and reinvest in growth-driving initiatives for sustained future success.
