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Wolverine World Wide INC /DE/
NYSE
8-K: Wolverine Worldwide Reports Q4 and Fiscal Year 2024 Results, Achieves Inflection to Growth
Sentiment:
Earnings Release
19 February 2025 6:42 AM
Wolverine Worldwide met its guidance, inflected to growth in Q4 2024, and issued its 2025 outlook, focusing on building momentum and delivering consistent returns.
Better than expected
The company exceeded expectations for both revenue and earnings in Q4.
The company achieved its goal of inflecting to growth in Q4 2024.
Summary
- Wolverine Worldwide reported its Q4 and full-year 2024 financial results, achieving its goal of inflecting to growth in the final quarter.
- The company exceeded expectations for both revenue and earnings in Q4.
- Ongoing total revenue for Q4 2024 was $494.7 million, a 3.0% increase compared to $480.5 million in Q4 2023.
- For the full year 2024, ongoing total revenue was $1,750.4 million, a 12.1% decrease compared to $1,992.1 million in 2023.
- Gross margin improved significantly, with Q4 2024 at 44.0% compared to 36.6% in Q4 2023, and full-year 2024 at 44.5% compared to 38.9% in 2023.
- Inventory was down 35.6% to $241 million compared to the prior year.
- Net debt decreased by 33.1% to $496 million compared to the prior year.
- The company expects 2025 revenue to be between $1.795 and $1.825 billion, representing growth of 2.5% to 4.3% compared to 2024.
- Diluted earnings per share for 2025 are projected to be in the range of $0.95 to $1.10, and adjusted diluted earnings per share in the range of $1.05 to $1.20.
Sentiment
Score: 8
Explanation: The sentiment is positive due to the company's successful turnaround, improved financial metrics, and optimistic outlook for 2025. The achievement of inflecting to growth and exceeding expectations in Q4 contributes to the positive sentiment.
Positives
- The company successfully inflected to growth in Q4 2024, meeting its outlined turnaround strategy.
- Gross margin improved significantly due to lower supply chain costs and reduced sales of end-of-life inventory.
- Inventory levels were substantially reduced, improving the company's financial health.
- Net debt was significantly reduced, strengthening the company's balance sheet.
- The company is projecting revenue growth and improved profitability for fiscal year 2025.
Negatives
- Full-year 2024 ongoing total revenue decreased by 12.1% compared to 2023, although this is largely due to divestitures.
- Sweaty Betty revenue decreased 5.9% in Q4.
Risks
- The company acknowledges potential risks related to general economic conditions, competition, supply chain disruptions, and foreign currency exchange rate fluctuations.
- Failure of licensees or distributors to meet planned annual sales goals or to make timely payments to the Company.
- Risks of breach of the Company's databases or other systems, or those of its vendors, which contain certain personal information, payment card data or proprietary information, due to cyberattack or other similar events.
Future Outlook
The company expects revenue to be approximately $1.795 to $1.825 billion in 2025, representing growth of approximately 2.5% to 4.3%. Gross margin is expected to be approximately 45.5%. Diluted earnings per share are projected to be in the range of $0.95 to $1.10.
Management Comments
- Chris Hufnagel, President and CEO, stated that the company accomplished its objectives of strengthening the balance sheet, expanding profitability, and inflecting to growth in Q4 2024.
- Hufnagel expressed excitement about building on the company's momentum in 2025 and delivering better returns for shareholders.
Industry Context
Wolverine's turnaround and focus on key brands like Merrell and Saucony align with the broader industry trend of companies streamlining their portfolios to focus on high-growth areas. The emphasis on direct-to-consumer channels also reflects the industry's shift towards greater control over distribution and customer relationships.
Comparison to Industry Standards
- Comparing Wolverine's performance to competitors like Deckers Outdoor Corporation (UGG, Hoka) and Columbia Sportswear Company provides context.
- Deckers has seen strong growth driven by Hoka, while Columbia has focused on outdoor apparel and footwear.
- Wolverine's turnaround is aimed at achieving similar success by focusing on its core brands and improving profitability.
- The projected revenue growth of 2.5% to 4.3% for 2025 is a positive sign, but it will need to be sustained to match the growth rates of industry leaders.
Stakeholder Impact
- Shareholders can expect improved returns as the company focuses on growth and profitability.
- Employees may benefit from a more stable and growing company.
- Customers can anticipate continued investment in product innovation and brand development.
Next Steps
- The company plans to build on the momentum gained in 2024 and continue its transformation in fiscal year 2025.
- The company will focus on supporting its brands and strategic initiatives to drive growth and profitability.
Key Dates
- February 4, 2023: Sale of the global Keds business.
- August 2023: Divested the U.S. Wolverine Leathers business.
- December 2023: Divested the non-U.S. Wolverine Leathers business.
- January 10, 2024: Sale of Sperry business.
- December 28, 2024: End of fiscal year 2024.
- February 19, 2025: Date of the earnings release.
- February 19, 2025: Earnings call to discuss results and business trends.
Keywords
Wolverine Worldwide, financial results, Q4 2024, fiscal year 2024, revenue, earnings, growth, gross margin, inventory, net debt, outlook, Merrell, Saucony, Sweaty Betty, divestitures
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Wolverine World Wide INC /DE/
NYSE
Sector: TBD
Filings with Classifications
Better than expected
8 May 2025 11:32 AM
Quarterly Report
- The company reported positive earnings per share compared to a loss in the same quarter last year.
- Revenue increased by 4.4% compared to the first quarter of 2024.
- Gross margin improved to 47.3% from 45.9% year-over-year.
Better than expected
8 May 2025 6:16 AM
Earnings Release
- The company's revenue, gross margin, operating margin, and earnings per share all showed significant improvement compared to the previous year.
Better than expected
19 March 2025 5:10 PM
Proxy Statement
- The company successfully completed its stabilization phase and strengthened the balance sheet, finishing the year with less than half the debt it held 24 months earlier and the cleanest inventory position since the pandemic.
- Business profitability improved, with record gross margins and earnings per share nearly six times greater than the prior year.
- Wolverine Worldwide experienced growth in the final quarter of 2024, setting the stage for continued growth.
Better than expected
20 February 2025 5:23 PM
Earnings Release
- The company exceeded expectations for revenue and earnings in the fourth quarter of 2024.
- The company's adjusted EPS of $0.42 was better than the guidance of $0.31 $0.41.
- The company's adjusted revenue of $495M was better than the guidance of $475 $490M.
Better than expected
20 February 2025 1:03 PM
Annual Results
- The company's earnings per share were better than the previous year.
- The company's gross margin was better than the previous year.
- The company's cash flow from operating activities was better than the previous year.
Better than expected
19 February 2025 6:42 AM
Earnings Release
- The company exceeded expectations for both revenue and earnings in Q4.
- The company achieved its goal of inflecting to growth in Q4 2024.
Worse than expected
7 November 2024 4:03 PM
Quarterly Report
- The company's revenue decreased significantly in both the third quarter and year-to-date periods, indicating worse than expected performance.
- The company's operating profit decreased by 48.4% year-to-date, indicating worse than expected performance.
Better than expected
7 November 2024 6:40 AM
Quarterly Report
- The company's revenue and earnings exceeded previous guidance for the third quarter.
- The company raised its full-year revenue and earnings guidance.
- The company achieved a record gross margin of 45.3%.
Worse than expected
8 August 2024 2:37 PM
Quarterly Report
- The company's revenue decreased by 27.8% year-over-year, indicating a worse performance than expected.
- Diluted earnings per share decreased from $0.30 to $0.17 year-over-year, indicating a worse performance than expected.
- The company experienced a cash outflow from operating activities in the first half of 2024, indicating a worse performance than expected.
Better than expected
7 August 2024 7:49 AM
Investor Presentation
- The company exceeded its revenue, gross margin, and EPS guidance for the second quarter of 2024.
- The company raised its full-year revenue and EPS guidance.
Better than expected
7 August 2024 6:36 AM
Quarterly Report
- The company's second-quarter revenue and earnings exceeded expectations, indicating better-than-anticipated performance.
- The company raised its full-year revenue and earnings guidance, suggesting improved confidence in future performance.
Worse than expected
8 May 2024 4:37 PM
Quarterly Report
- The company's revenue declined by 34.1%, which is significantly worse than expected.
- The company reported a net loss of $13.7 million, which is worse than the net income of $18.0 million in the same period last year.
Better than expected
8 May 2024 6:33 AM
Quarterly Report
- The company exceeded first-quarter revenue and earnings expectations.
- The company achieved a record gross margin of 45.9%, a 650 basis point increase year-over-year.
- The company reduced inventory by 51.2% year-over-year.
Worse than expected
20 March 2024 4:38 PM
Proxy Statement
- Company and International Group revenue and pre-tax performance for 2023 was below threshold and resulted in no payout.
Worse than expected
22 February 2024 2:08 PM
Annual Results
- The company's revenue decreased by 16.5% compared to the prior year.
- The company's gross margin declined to 38.9% in 2023.
- The company reported a loss per share of $0.51 in 2023.
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