Wolverine World Wide, a footwear company based in Michigan, has reported a significant decline in sales across its portfolio in the third quarter. The company saw a 23.7% decrease in revenues, bringing it to $527.7 million. Nearly all of the company’s brands experienced declines, with the exception of Sweaty Betty, which saw a 19% increase.

The reported revenue for the quarter was $519.5 million when excluding the impact of the sale of Keds in February, the U.S. Wolverine leathers business sold in August, and the non-U.S. Wolverine leathers business, which is currently being sold. Additionally, it reflects an adjustment for the transition of the Hush Puppies North America business to a licensing model in the second half of 2023.

International revenue for the third quarter decreased by 24.4% to $229 million, while revenue from the ongoing international business was down 22.3% to $221.8 million. Direct-to-consumer revenue also saw a decrease of 14.5% to $136.6 million in the quarter.

Wolverine World Wide experienced double-digit declines across its portfolio of brands in the third quarter. However, the Wolverine brand business saw mid-single-digit declines, and the Saucony business saw a mid-teens decline. On the other hand, the Sweaty Betty brand achieved double-digit growth.

Chris Hufnagel, the president and CEO of Wolverine World Wide, addressed the company’s performance and stated that they have taken decisive action to stabilize and transform the company. He mentioned initiatives such as reshaping the brand portfolio, reducing inventory, and focusing on building consumer-obsessed brands.

In line with its strategic transformation, Wolverine has implemented several actions. This includes the creation of a new strategic center of excellence called ‘The Collective’, which encompasses innovation, insights, and trends teams, an internal creative and public relations team, and an in-house creative production studio. The company is also establishing a global licensing function to maximize commercial opportunities with its licensed businesses, as well as its apparel and accessories programs.

Other changes involve the introduction of a new global planning function called ‘integrated planning’ to enhance demand, inventory, and supply chain management. Wolverine will also incorporate advanced digital product management, design, and development tools to improve product capabilities and efficiencies. Additionally, a consolidated North American commercial structure will be implemented to drive greater efficiency and alignment.

Wolverine World Wide believes that these initiatives, combined with a focus on building compelling products and storytelling, will position the company for profitable growth in the future. Despite challenging market conditions, they remain confident in their brands, platforms, and people. Through a bold and accelerated approach, Wolverine aims to improve profitability and invest in its biggest growth opportunities to deliver greater value for its shareholders.

Useful links:
Wolverine World Wide Official Website
Sweaty Betty Official Website