Home NEWS Wolverine Worldwide Reports Losses in 2023 but Remains Optimistic for Future

Wolverine Worldwide Reports Losses in 2023 but Remains Optimistic for Future


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.