Wolverine Worldwide clocks double-digit annual sales growth, swings to loss

By

Benjamin Fitzgerald

Published
Feb 22, 2023

Wolverine World Wide Inc. announced on Wednesday revenues for the full-year 2022 increased by double digits, on the back of a solid fourth quarter which witnessed surging international sales during the three months.

The Rockford, Michigan-based company clocked annual revenues $2.7 billion, up 11.2% versus the prior year and up 14.1% on a constant currency basis. For the fourth quarter ending December 31, Wolverine recorded a 4.6% increase in revenues, and growth of 8.4% on a constant currency basis.
 
The company's international business was especially strong during the quarter, up 22.2% or 31.9% on a constant currency basis to $281.5 million. Direct-to-consumer revenue of $224.4 million were flat compared to the prior year and up 4.8% on a constant currency basis, said the owner of Sperry, Merrell, Saucony and Sweaty Betty brands, among others.

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Net losses widened in the fourth quarter to $360.8 million, compared to a net loss of $15 million in the prior-year period. Likewise, the company swung to a net loss of $189.1 million in 2022, compared to a net profit of $67 million in 2021.
 
"Despite a challenging year in 2022, we've taken important steps to become a more disciplined and agile company while focusing on long-term growth,” said Brendan Hoffman, Wolverine Worldwide president and chief executive officer.
 
“Encouraging results from our 100-day action plan, initiated in the fourth quarter, include a reduction in inventory and debt levels, the sale of Keds, and the establishment of a new Profit Improvement Office to unlock savings to support growth acceleration in our highest potential brands.”
 
Looking ahead, the company said its priorities for 2023 are to fuel growth in its active group, sustain positive momentum in its work group, and address underperforming brands while further strengthening its financial position.
 
“We expect to grow 2023 revenue from our ongoing business by approximately 0% to 2% and 1% to 3 % on a constant currency basis and deliver approximately 8.5% operating margin. We remain confident in our ability to deliver a 12% operating margin in 2024,” concluded Hoffman.