Wolverine ends 2023 with 20% sales decline, continues turnaround plan

Wolverine World Wide announced on Wednesday revenue fell 20.8% to $526.7 million for the fourth quarter, with the footwear and apparel firm continuing to turnaround sales declines after downsizing its business throughout 2023.

The Rockford, Michigan-based firm said international revenue fell 5.1% to $267.2 million, while direct-to-consumer sales were down 17.6% to $186.9 million.
 
By brand, Merrell fell 16.6% to $161.8 million, Saucony declined 13.4% to $105.1 million, and Wolverine brand sales decreased 27.9% to $51.8 million. The company’s Sweaty Betty brand decreased 7.6% to $67.3 million during the quarter.

For the full-year ending December 31, total revenues decreased 16.5% to $2.2 billion, the company added.

​“We are effectively executing our transformation plan with great pace – having largely completed the stabilization phase of our turnaround,” said Chris Hufnagel, president and chief executive officer of Wolverine Worldwide.

“We finished the year with revenue and earnings in-line with guidance, and inventory and debt levels better than expected. Most importantly, Wolverine Worldwide is a much different company than it was just six months ago, with a healthier balance sheet, enhanced efficiency to deliver higher profit and investment, and a redesigned organizational structure to strengthen our brand-building capabilities. Our focused portfolio of authentic brands – supported by powerful central platforms – is focused on helping consumers live better lives through performance-led product innovation and design. Going forward, we are accelerating our transformation of the business to ultimately drive an inflection to growth. Our team is energized by our new vision to become global brand builders, and we are confident in our ability to drive meaningful and sustained shareholder value.”

Looking ahead, Wolverine said revenue from its ongoing business is expected to be approximately $1.7 billion to $1.75 billion, representing a decline compared to 2023 of approximately 14.7%.

Last year saw the U.S. company sell-off parts of the company in a bid to turnaround waning sales and tune-up profitability. 

The company sold its Keds brands for over $90 million in February, 2023, followed by the sale of Hush Puppies intellectual property in China, Hong Kong, and Macau for approximately $58.8 million in August. Most recently, Wolverine sold its Sperry brand to Authentic Brands in January this year.