Credit: Saucony Wolverine Worldwide sees major declines in full 2023 results
In the full year, revenue for the Merrell brand was down by 11.6% to US$675.8 million, while Saucony declined by 1.9% to US$495.8 million. Wolverine was down by 18.7% to US$201.2 million and Sweaty Betty dropped by 3.6% to US$203.8 million. The group had a gross margin of 38.9%, down from 39.9% in 2022.
In the fourth quarter alone, revenue was down by 20.8% for the group to US$526.7 million. Revenue for Merrell dropped by 16.6% to US$161.8 million, while Saucony declined by 13.4% to US$105.1 million. Wolverine was down 27.9% to US$51.8 million and Sweaty Betty fell by 7.6% to US$67.3 million. Gross margin for the quarter was 36.6%, up from 33.7% in the same period of 2022.
The results exclude impacts from Keds, sold in February 2023, and the U.S. Wolverine Leathers business, sold in August 2023, and the non-U.S. Wolverine Leathers business, sold in December 2023. It also reflects an adjustment for the transition of the Hush Puppies North America business to a licensing model in the second half of 2023.
Looking forward, Wolverine Worldwide expects revenue to decline by 14.7% to 12.2% in the full 2024 fiscal year, totalling US$1.7-1.75 billion, with a gross margin around 44.5%.
President and CEO Chris Hufnagel said: “We are effectively executing our transformation plan with great pace – having largely completed the stabilisation phase of our turnaround. 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 organisational 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 energised by our new vision to become global brand builders, and we are confident in our ability to drive meaningful and sustained shareholder value.”
Credit: Saucony