Wolverine World Wide, Inc. reported revenue of $526.7 million for the 2023 fourth quarter, falling 20.8 percent, or 21.3 percent on a constant-currency basis (CC), from the prior-year quarter. Revenue from the ongoing business was $521.2 million and declined 18.4 percent on a constant-currency basis.

The ongoing business excludes the impact of Keds (sold in February 2023), the U.S. Wolverine Leathers business (sold in August 2023) and the non-U.S. Wolverine Leathers business (sold in December 2023). It reflects an adjustment for the transition of the Hush Puppies North America business to a licensing model in the second half of 2023.

The company’s international revenue was $267.2 million in Q4, down 5.1 percent (-6.2 percent CC) compared to the prior-year period. International revenue from the ongoing business was $261.7 million, down 3.4 percent (-4.6 percent CC) compared to the prior-year period.

Direct-to-consumer (DTC) revenue of $186.9 million was down 17.6 percent compared to Q4 2022 and down 15.5 percent for the ongoing business compared to the prior-year Q4 period.

Gross margin was 36.6 percent of sales in Q4, compared to 33.7 percent in the prior-year Q4.

Full-year revenue amounted to $2.24 billion, representing a decline of 16.5 percent (-16.3 percent CC) versus the prior year. Gross margin was 38.9 percent of sales in 2023, compared to 39.9 percent in 2022. The lower gross margin reflected sales of higher-cost inventory due to transitory costs from 2022 and the acceleration of end-of-life inventory liquidations. For the year, SG&A expenses were $940.7 million, or 41.9 percent of revenue. Adjusted SG&A expenses of $797.7 million, or 36.3 percent of adjusted revenue, were 250 basis points higher than the prior year.

Before the fourth quarter of 2023, the company reported Sperry, Keds and Hush Puppies financial results in the Lifestyle Group. The Lifestyle Group is no longer a reportable segment, and the company included the financial results for Sperry, Keds, and Hush Puppies in Other. The company also disclosed that it adjusted the prior period.

Image courtesy Wolverine World Wide, Inc.

See below for more SGB Media coverage of the company’s Q4 and full year results, including brand details and company outlook for 2024:

EXEC: Inside the Wolverine Worldwide C-Suite – Assessing the Year Ahead