Wolverine World Wide Shares Move 1.3%

By Tamara Parker • Wednesday, February 21 15:52 • Permanent Link

Wolverine Worldwide, Inc. (NYSE: WWW) has reported its financial results for the fourth quarter and full year of 2023, noting that the company's performance was in line with guidance. The company also provided an outlook for 2024.

Chris Hufnagel, President and CEO of Wolverine Worldwide, expressed confidence in the company's transformation efforts, stating, "We are effectively executing our transformation plan with great pace – having largely completed the stabilization phase of our turnaround. 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."

Financial highlights for the fourth quarter of 2023 include a revenue decline of 20.8% to $526.7 million, with gross margin improving to 36.6% compared to the prior year. The company also reported a net debt reduction to $740 million, down $285 million from the prior year.

Looking at the full year of 2023, Wolverine Worldwide reported a revenue decline of 16.5% to $2,242.9 million. The company's gross margin was 38.9%, and net debt at the end of the year was approximately $575 million.

Mike Stornant, Executive Vice President and CFO of Wolverine Worldwide, outlined the company's outlook for 2024, stating, "Our expectation of improved fiscal 2024 profitability reflects the comprehensive stabilization work completed over the last six months." He mentioned that the company expects to deliver incremental cost benefits of $140 million from recent profit improvement initiatives, allowing for reinvestment into demand creation and enhanced technology, among other capabilities needed to drive sustained growth.

The full-year 2024 outlook for Wolverine Worldwide includes expectations of approximately $1.70 billion to $1.75 billion in revenue from the ongoing business, representing a decline compared to 2023, and a gross margin of approximately 44.5%.

Wolverine Worldwide's shares have moved 1.3% and are currently trading at a price of $9.27.

The company's full 8-K submission is available here.

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