Wolverine Worldwide Q4 revenues decline by 20.8 percent

Wolverine Worldwide’s fourth quarter revenue of 526.7 million dollars, declined 20.8 percent versus the prior year and declined 21.3 percent on a constant currency basis.

Revenue from the ongoing business for the quarter was 521.2 million dollars and declined 18.4 percent on a constant currency basis.

Revenue for the full year of 2,242.9 million dollars, declined 16.5 percent and 16.3 percent on a constant currency basis.

“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,” said Chris Hufnagel, president and chief executive officer of Wolverine Worldwide.

Highlights of Wolverine Worldwide’s Q4 results

The company's international revenue of 267.2 million dollars was down 5.1 percent and down 6.2 percent on a constant currency basis.

International revenue from the ongoing business of 261.7 million dollars, was down 3.4 percent and down 4.6 percent on a constant currency basis.

Direct-to-consumer revenue of 186.9 million dollars was down 17.6 percent and down 15.5 percent for the ongoing business compared to the prior year.

Gross margin for the quarter improved to 36.6 percent, while full year gross margin was 38.9 percent.

Wolverine Worldwide forecasts revenue decline for FY24

The company added that for fiscal 2024 revenue from ongoing business is expected to be approximately 1.70 billion dollars to 1.75 billion dollars, representing a decline of approximately 14.7 percent to 12.2 percent and constant currency decline of approximately 14.3 percent and 11.8 percent.

Gross margin is expected to be approximately 44.5 percent, up 460 basis points compared to 2023. Operating margin is expected to be approximately 5.7 percent, and adjusted operating margin is expected to be approximately 7 percent, up 310 basis points.

Diluted earnings per share are expected to be between 43 cents and 63 cents and adjusted diluted earnings per share are expected to be between 65 cents and 85 cents.