Wolverine Worldwide sales and net income down in 2016
Wolverine Worldwide is going through a tough spell. The US footwear group, owner among others of the Merrell, Sperry, Saucony, Keds and Sebago brands, is undergoing a restructuring since 2015, and in the fiscal year closed on 31st December 2016 it recorded a revenue of $2.494 billion (€2.371 billion), equivalent to a 7.3% loss over 2015.
Wolverine Worldwide's margins too have suffered in 2016, with a net income of $87.5 million, nearly 29% below the $123.2 million earned in 2015. EBIT was $159.9 million (6.4% of revenue), compared to $201.1 million (7.5% of revenue) last year.
In addition to company restructuring costs to the tune of $8.3 million, the group has pointed the finger at unfavourable exchange rate effects, affecting exports, and at the closing down of several stores and of the Cushe brand. Wolverine Worldwide has in fact parted with 101 stores in 2016, and has refinanced its debt until 2020.
"Our team has worked effectively in 2016 to introduce and implement our new strategic plan, the 'Wolverine Way Forward', whose objective is to gain a better understanding of consumers and to put together and distribute a stronger, more innovative product range," said Blake W. Krueger, President and CEO of Wolverine Worldwide.
For 2017, the group has forecasted a further sales shortfall, due to the strong US dollar and more store closures, and expects to reach a revenue between $2.27 billion and $2.37 billion, equivalent to a decrease between 5% and 9%.
In order to strengthen its management team, the group made two new appointments in February: Todd Spaletto, formerly with The North Face, is now President of the Outdoor & Lifestyle division, while Jim Zwiers was promoted to Executive Vice-President.
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