Wednesday, May 15, 2019
Volume 2, Issue No. 9

Wolverine Sees Revenue Drop

Rockford, MI-based Wolverine Worldwide saw total Q1 revenues slip less than 1 percent to $523.4 million as the period operating margin fell to 10.0 percent from 12.0 percent. There were mixed results from the company’s portfolio of brands and a slow start for seasonal footwear sales. Own e-commerce sales were up 28 percent in Q1 to represent nearly 10 percent of WWW’s global revenues. The company’s Wolverine Michigan Group, a merger of the former Outdoor & Lifestyle and Heritage segments, saw Q1 revenues grew nearly 3.7 percent on a constant-currency basis. Merrell reported better-than-expected results, including 30-plus percent growth in  e-commerce and a mid-single digit in own same-store sales. CAT brand sales, meanwhile, grew more than 30 percent Q1, but period sales fell in Hush Puppies, Chaco and Bates.

At the Wolverine Boston Group led by Richie Woodworth, Saucony brand sales exceeded plan but fell at a mid-teens rate in Q1. Overall Boston Group revenues fell 5.7 percent in constant currency with Sperry, hurt by boat shoe sell-throughs that were down more than 10 percent. Keds’ sales up more than 20 percent.  Saucony’s softness was primarily related to its core technical running segment in the U.S. Sperry enjoyed double-digit sales growth in both casual footwear styles and the lifestyle boot category.