Wolverine Worldwide posts quarterly loss of $171 million
Rockford, Michigan-based outdoor and active apparel and footwear company Wolverine World Wide, Inc. (Wolverine Worldwide) reported a Q4 net loss of $170.7 million, or $2.10 per diluted share, on Thursday, compared to a loss of $900,000, or $0.01 per diluted share, in the same period in the previous year.
For the fourth quarter ended January 2, 2021, the group, which owns brands including Wolverine, Saucony, Merrell, Sperry and Hush Puppies, posted total revenue of $509.6 million, down 16.1% from $607.4 million in the prior-year period.
Wolverine Worldwide did, however, highlight that its owned e-commerce channel saw quarterly revenue growth of 31.7% versus the prior year. According to the company, it plans to make further investments in digital in 2021, with an aim of achieving an annual revenue increase of 40% in the channel.
In 2020, Wolverine Worldwide’s full-year e-commerce sales increased 49.9%, but overall the company’s annual revenues dropped 21.2% to $1.8 billion, compared to $2.3 billion in 2019. Full-year net loss was $136.9 million, or $1.70 per diluted share, down from net earnings of $128.9 million, or $1.44 per diluted share, in the previous year.
“The company delivered better-than-expected results for the fourth quarter and is poised to drive an accelerated recovery over the next twelve to eighteen months,” commented Wolverine Worldwide chairman and CEO Blake W. Krueger in a release. “During a year of unprecedented challenges, we took action focused on the rapidly changing consumer landscape.”
“Our team executed on key profit and liquidity priorities that were identified at the onset of the pandemic, resulting in annual operating cash flow of $309 million and $1.1 billion of total liquidity at year-end,” explained SVP and CFO Mike Stornant.
Looking forward, aside from its planned investments in e-commerce, the company said that its Merrell, Saucony, Sperry, and Wolverine brands all have important new product launches scheduled for 2021.
Wolverine Worldwide expects annual revenues to total between $2.19 billion and $2.25 billion in 2021, representing year-over-year growth in the range of 22% to 26%. The company also hopes to post full-year e-commerce revenue of $500 million, more than double the figure reported in 2019.
Diluted earnings per share are expected to be between $1.75 and $1.90.
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