Wolverine Worldwide says third quarter exceeded expectations

Worldwide
Published:  09 November, 2020

The U.S. headquartered footwear manufacturing Group said the Saucony and Chaco brands delivered double-digit revenue growth in the third quarter, year-onyear, while the Merrell and the work brands drove “meaningful sequential revenue improvement” compared with the previous second quarter.

Wolverine Worldwide posted a reported revenue of US$493.1 million for the third quarter of 2020, down 14.1% versus the prior year. On a constant currency basis, revenue was down 14.6%. Owned e-commerce revenue grew 56.4%, year-onyear, while the reported gross margin was 41% compared with 42.4% in the prior year. Reported operating margin was 8.6% in the period (Q3 2019: 11.9%, and adjusted operating margin was 10.6% (Q3 2019: 14.1%). Reported diluted earnings per share were US$0.27, down from US$0.57 in the prior year. Adjusted diluted earnings per share were US$0.35, and, on a constant currency basis, were US$0.34, compared with US$0.68 in the same quarter of 2019.

“The Company’s third quarter results significantly exceeded our expectations, reaffirming the inherent strength of our portfolio and strong brand positioning in winning product categories and distribution channels”, said Blake W. Krueger, Chairman and CEO, Wolverine Worldwide. “Saucony and Chaco delivered doubledigit revenue growth in the quarter compared to the prior year, while Merrell and our work brands drove meaningful sequential revenue improvement versus Q2. Innovative, fresh product paired with compelling storytelling continued to fuel demand, as evidenced by our owned e-commerce business, which grew over 56% compared to last year. Our relentless focus on product design and development of digital capabilities has served the business well and will remain central to our multi-year investment strategy”, said Krueger.