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Wolverine exceeds expectations in fourth quarter and aims for strong recovery in 2021

Mar 18, 2021 United States
Wolverine exceeds expectations in fourth quarter and aims for strong recovery in 2021
The US-based footwear giant has announced fourth-quarter revenue exceeding expectations. Performance in owned eCommerce and two largest brands, Merrell and Saucony, give Wolverine prospects of a strong recovery in 2021
“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“During a year of unprecedented challenges, we took action focused on the rapidly changing consumer landscape. Our owned eCommerce revenue grew 50% in 2020, and we have planned further investment in this area to enable growth of 40% in 2021, significantly outpacing broader industry expectations. Our balance sheet is healthy, and our brands are well positioned in winning product categories with strong momentum. Merrell, Saucony, Sperry, and Wolverine all plan to launch compelling new products behind some of their biggest franchises, and we anticipate meaningful growth for the Company in 2021, resulting in revenue approaching 2019 levels for the year”, commented Blake W. Krueger, Wolverine Worldwide’s Chairman and Chief Executive Officer.

Fourth Quarter Review

Reported revenue totaled 509.6 million US dollars, down by 16.1% versus the prior year. On a constant currency basis, revenue was down by 16.4% versus the prior year. Owned eCommerce reported revenue grew by 31.7% versus the prior year. Reported diluted loss per share was 2.10 US dollars compared to a loss per share of 0.01 US dollars in the prior year.
 

Full Year Review

Reported revenue was 1.791 million US dollars, down by 21.2% versus the prior year on a reported and constant currency basis. Owned eCommerce reported revenue grew by 49.9% versus the prior year. Reported diluted loss per share was 1.70 US dollars, including the impact of a non-cash trade name impairment of 2.07 US dollars per share, compared to earnings per share of 1.44 US dollars in the prior year.

“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 US dollars and 1.1 billion US dollars of total liquidity at year-end. We are now able to increase our investment behind several key growth priorities supported by good visibility to robust demand and an eCommerce platform that continues to outperform. The Company is in an enviable position to drive profitable and accelerated growth in 2021”, concluded Mike Stornant, Senior Vice President and Chief Financial Officer.

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