The company’s Q4 ongoing total revenue saw a 3.3% rise on a constant currency basis. However, total revenue reached $494.7m, marking a decrease of 6.1% from the $526.7m recorded in the corresponding quarter of the previous fiscal year.
Despite this downturn, Wolverine’s Work Group division experienced a significant revenue increase of 20.6%, reaching $151.1m in the quarter. This was offset by declines in its Active Group and Other revenue streams, which fell by 2.8% and a staggering 80.2% respectively.
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Wolverine Worldwide president and chief executive officer Chris Hufnagel said: “A year ago, we outlined an ambitious turnaround strategy composed of three chapters: stabilisation, transformation, and inflection. We shared a plan to meaningfully strengthen the company’s balance sheet, expand profitability, and sequentially improve revenue trends – culminating with an inflection to growth in the final quarter of 2024.
“I’m pleased to report that we accomplished all of these objectives. In the fourth quarter, we exceeded our expectations for revenue and earnings and inflected to growth as a company – delivering better-than-anticipated results for 2024.”
Key metrics from Q4 FY24
The fourth quarter, which concluded on 28 December 2024, saw the company achieve net earnings of $25.3m. This is a notable turnaround from the net loss of $90.6m reported in the same period of the prior year.
Diluted earnings per share (EPS) also reflected this positive shift, registering at $0.29, a substantial improvement of 125.2% from the loss per share of $1.15 in the prior year’s quarter.
The company’s gross profit for Q4 FY24 stood at $217.7m, an increase from $193.0m in the last fiscal year’s equivalent quarter.
Its gross margin also saw an impressive rise to 44.0%, up 740 basis points from 36.6% in the previous fiscal year’s same period. This improvement was largely attributed to reduced supply chain and product costs, as well as lower sales of end-of-life inventory.
Operating expenses for Wolverine Worldwide showed a significant reduction, dropping by 53.2% to $177.9m in Q4 FY24 compared with $379.9m in Q4 FY23.
At the end of the quarter, inventory levels were reported at $241m, a decrease of approximately 35.6% or $133m when compared to the previous year.
The company’s net debt also saw a decline, standing at $496m, down by roughly 33.1% or $246m compared to the prior year.
FY24 performance
Looking at the full year of 2024, Wolverine Worldwide’s revenue totalled $1.75bn, which is down by 21.8% from $2.24bn in the previous fiscal year.
Net earnings for FY24 were reported at $51.5m, contrasting with a net loss of $39.2m in FY23. Diluted EPS stood at $0.58 against a loss of $0.51 per share in FY23.
The company’s gross profit for FY24 was registered at $781.5m, a decrease from the previous fiscal year’s figure of $872.5m, while its gross margin improved to 44.5%, up from 38.9% in FY23.
Chris Hufnagel added: “2024 was a pivotal year for our 142-year-old company. While we haven’t yet reached our full potential, I’m encouraged by the progress we’ve made and thankful for our teams and partners around the world.
“The most important chapter is the next one, as we drive together to deliver better, more consistent returns for our shareholders.”
Fiscal year 2025 outlook
As Wolverine Worldwide looks ahead to fiscal year 2025, it aims to capitalise on its momentum from 2024 and continue its transformation journey with a focus on portfolio optimisation and strategic brand investments.
For FY25, the company anticipates revenue between approximately $1.795 and $1.825bn, signifying growth between roughly 2.5% and 4.3% compared to the ongoing business in 2024 and constant currency growth between about 4.7% and 6.5%.
Projected diluted EPS to range between $0.95 and $1.10 and a gross margin of approximately 45.5%, which would be an increase of 100 basis points over 2024.
