Wolverine World Wide Inc. confirmed that Gene McCarthy, Merrell brand’s president since August 2013, had left the company, effective May. 4. Jim Gabel, president of Wolverine’s Performance Group, has assumed day-to-day leadership of the brand.
“This is really about Jim,” Christopher Hufnagel, Wolverine World Wide's vice president of the company's strategy, investor relations and communications, told M Live. “He has a clear vision for the brand and felt the fastest way to capitalize on the global opportunity of the brand was take over day-to-day leadership of Merrell.”
Merrell’s growth rate has slowed to in recent years. In the first quarter, sales on a currency-neutral basis were flat. Strength in its performance outdoor category and men's active lifestyle was offset by ongoing softness in the women's Capra business and a decline in the brand’s the brands smaller segment outside athletic.
Officials said on WWW’s first-quarter conference call that Merrell must grow its ratio of lifestyle footwear if it is to regain the high-single-digit/low-double-digit growth rates of the past. To make that happen, Merrell is recruiting new designers and striving to accelerate the launch of several women's casual lifestyle products in the back half of the year. Still, worsening conditions in Russia prompted WWW to lower Merrell's revenue forecast for the full year from a gain in the high-single digits it expected in February to mid-single digits.
In June 2014, Gabel succeeded Jim Zwiers as president of the Performance Group, which includes Merrell, Saucony, Chaco and Cushe. Gabel most recently served as president of Adidas Group Canada. Zwiers at the time was appointed president of the International Group. Prior to joining Wolverine in 2013, McCarthy was SVP of footwear for Under Armour, and previously held leadership positions at Timberland, Reebok and Nike.
