Wolverine New CEO for Wolverine Worldwide alongside disappointing Q2
The company has appointed Chris Hufnagel has President and CEO, succeeding outgoing CEO Brendan L. Hoffman.
Hufnagel joined the company in in 2008, most recently working as President of the Company’s Active Group with responsibility for Merrell, Saucony, Chaco, the Kids Group and Global Licensing.
Financial results for the period exclude the impact of Keds, sold in February 2023, and Wolverine Leather, which remains the subject of a sale process.
Revenue for the second quarter was down by 17.4% year-on-year (down 17.3% on a constant currency basis) to US$589.1 million, while revenue from the ongoing business was down by 13.8% on a constant currency basis to US$578.2 million.
Direct-to-consumer revenue was down by 20.3% to US$132.4 million while international revenue from the ongoing business was down by 6.7% to US$260.9 million. Gross margin for the quarter was 38.7%, down from 43% in the same period of 2022.
Looking forward, the company expects revenue to decline by 10-10.7% year-on-year to US$2.26-2.28 billion with a gross margin of around 39.4%.
Hufnagel said: “Our second half outlook, as reflected in our updated annual guidance, is disappointing but we are confident that the work we are undertaking will drive significant profit improvement in 2024 and quickly set a strong growth foundation for the company. The current adversity has not only deepened our conviction that our strategic direction is more correct than ever, but that we must execute it with greater boldness and speed.”