Published in Breaking News

Wolverine Worldwide posts decline in Q4, end of year revenues

BY Tuesday, February 23, 2016 12:19pm

ROCKFORD — Wolverine World Wide Inc. reported declining revenues in the fourth quarter and for its 2015 fiscal year.

The Rockford-based marketer of footwear and apparel generated revenues of $2.69 billion for 2015, a 2.5-percent decline from the $2.76 billion the previous previous year.

Wolverine (NYSE: WWW) reported earnings of $11.9 million, or 12 cents per diluted share for the fourth quarter that ended Jan. 2, up $700,000 or 2 cents per diluted share from the same period in 2014. Revenues in the quarter dipped 7.1 percent to $751.2 million.

For the year, Wolverine’s earnings were $123.2 million, or $1.20 per diluted share, a dip of $10.7 million and 10 cents per diluted share from a year ago.  

Wolverine executives cite a “very tough environment” over the fourth quarter as being partially responsible for the company’s declining revenue, Senior Vice President and CFO Mike Stornant said in a statement.  

“This last quarter was incredibly volatile for the whole industry as global economic pressures worsened, holiday sales were tepid and unseasonably warm weather impacted many regions,” Stornant said.

Revenues in the quarter dipped in the company’s Lifestyle (6.7 percent) and Heritage (13.8 percent) brand groups, and increased 3.5 percent in the Performance group.

Wolverine made leadership and organizational changes in its underperforming business segments to “mitigate its short-term exposure” to the global economic pressures, Stornant said.

Executives say they expect the global retail market “to remain challenging in 2016,” particularly as Wolverine continues to work on a realignment plan that focuses less on bricks-and-mortar stores as consumers shift to e-commerce. Another factor, according to executives, could come in the form of “the slowdown in China potentially impacting key markets.”

Wolverine expects revenues to continue to decline between 4.3 percent and 0.5 percent by the end of this year as a result of global currency fluctuations, store closures and the exit of its Cushe business segment, according to guidance issued by the company.

Read 1779 times Last modified on Tuesday, 23 February 2016 12:27
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