US footwear company Wolverine Worldwide has sold its Sperry brand to Authentic Brands Group and the Aldo Group. The sale, completed on January 10, 2024, is expected to generate approximately $130 million in proceeds in the first quarter, which will be used to pay off debt. This follows a series of asset monetization deals by Wolverine Worldwide, resulting in nearly $250 million in cash generated in 2023.

According to a joint media release, Wolverine Worldwide sees the sale of the Sperry brand as a crucial step in its turnaround and strategic transformation. After exploring various strategic alternatives, the company believes that this sale is the best option for its future. Wolverine Worldwide’s President and CEO, Chris Hufnagel, expressed confidence in the company’s progress in reshaping its portfolio and reducing debt. He also highlighted the company’s commitment to building consumer-focused global brands and delivering value to shareholders.

Wolverine Worldwide is recognized for its popular brands such as Merrell, Saucony, Hush Puppies, Chaco, Cat Footwear, and Bates. Despite reporting a sales increase of 11.2% to $2.7 billion in the 2022 financial year, the company confirmed a decline in sales to $2.24 billion for the year 2023.

By selling the Sperry brand, Wolverine Worldwide aims to streamline its portfolio and invest in its core brands and platforms. This strategic move aligns with the company’s goal of enhancing performance and profitability by focusing on a smaller number of brands. The divestment will enable Wolverine Worldwide to allocate resources more efficiently and pursue its vision for future growth.

Useful links:
Wolverine Worldwide Brands
Wolverine Worldwide Press Releases