Wolverine Worldwide, the outdoor apparel and footwear group based in Rockford, Michigan, announced impressive double-digit revenue growth for the third quarter of 2021, despite encountering challenges due to factory closures in Vietnam and global logistics disruptions. The company reported revenue of $636.7 million for the quarter ended October 2, a substantial increase from $493.1 million in the same period last year. This equates to a remarkable year-over-year growth of 29.1%, or 28.2% in constant currencies.

The standout driver of growth for Wolverine Worldwide was its e-commerce channel, which witnessed an astounding 45% increase in sales compared to the previous year and a staggering 126% surge compared to the third quarter of 2019, before the Covid-19 pandemic took hold.

Despite disruptions in the supply chain, Wolverine Worldwide’s portfolio of brands, including Wolverine, Merrell, Saucony, and Sperry, achieved impressive results. Saucony and Sperry experienced revenue growth of over 40% year-over-year, while Merrell achieved mid-single-digit revenue growth despite being the brand most impacted by factory closures in Vietnam.

The acquisition of British women’s activewear brand Sweaty Betty on August 2, 2021, further boosted Wolverine Worldwide’s quarterly results. Excluding the contribution of Sweaty Betty, the company’s third-quarter revenues reached $597.6 million, showcasing a growth rate of 21.2% compared to the same period in the previous year. E-commerce sales increased by 13.3% year-over-year.

In terms of earnings, Wolverine Worldwide broke even for the quarter due to costs associated with the Sweaty Betty acquisition, ongoing litigation, and the measures taken to address production and shipping delays. This impacted the company’s improved revenue compared to the same quarter the prior year when it reported an income of $22.4 million, or $0.27 per diluted share.

For the year-to-date period, Wolverine Worldwide achieved revenue of $1.8 billion, reflecting a notable growth rate of 38.8% compared to $1.3 billion in the previous year. Earnings for the nine-month period were $83.2 million, or $0.98 per diluted share, compared to $33.8 million, or $0.41 per diluted share, in 2020.

Wolverine Worldwide CEO Blake W. Krueger expressed confidence in the company’s future outlook, citing the continued strong demand for its brands and its portfolio’s composition, which includes performance categories like hiking, running, and work. Krueger stated, “We remain bullish on our outlook for the future in light of these trends.”

However, SVP and CFO Mike Stornant acknowledged the impact of the factory closures on the company’s ability to meet high demand in the fourth quarter of 2021. He emphasized the need to adjust the full-year financial outlook for fiscal 2021. Wolverine Worldwide now anticipates annual revenue to reach approximately $2.4 billion, representing a year-over-year growth of nearly 35%. The company predicts diluted earnings per share to fall within the range of $1.16 to $1.21.

Useful Links:
1. Wolverine Worldwide Official Website
2. Saucony Official Website