Published in Finance

Wolverine World Wide reports strong e-commerce despite revenue decline

BY Thursday, November 05, 2020 04:56pm

ROCKFORD — Wolverine World Wide Inc. reported a strong performance from its e-commerce business in a third quarter earnings report Thursday, though quarterly and year-to-date revenue are down compared to last year.

The Rockford-based footwear manufacturer saw e-commerce revenue jump 56.4 percent compared to the same time last year, helping to slow down the revenue loss brought on by the COVID-19 pandemic.

WWW Chairman and CEO Blake Krueger COURTESY PHOTO

Wolverine World Wide (NYSE: WWW) reported $493.1 million in revenue for the quarter, which was down 14.1 percent compared to last year.

In the earnings report, company Chairman and CEO Blake Krueger said Wolverine maintained a “relentless focus” on both product design and developing digital capabilities.

“I am encouraged by our growing momentum in the face of the headwinds created by the global pandemic and excited about the growth opportunities in front of the company for 2021 and beyond,” Krueger said in a statement. “Our strong digital strategy and improved visibility to wholesale demand should enable us to return to meaningful growth in Q1 of 2021.”

Reported gross margin for the quarter was 41 percent, which was down from 42.4 percent this time last year. Additionally, diluted earnings per share were $0.27 compared to earnings per share of $0.57 in the previous year. Adjusted diluted earnings per share were $0.35. 

The company also reported $96.5 million in cash flow from operating activities for the quarter compared to $12.1 million in the prior year. Cash on hand at the end of the quarter was $342.0 million, much higher than the $125.2 million in the previous year.

“The company continued to deliver quality results by executing on the key priorities we outlined earlier this year, which included a heightened focus on positive cash flow, a healthy balance sheet, profitability and setting the company up for growth in 2021,” Wolverine Senior Vice President and CFO Mike Stornant said in a statement.

The company expects challenges in the pandemic-rattled market to remain, forecasting no more than a 25 percent drop in revenue year-over-year for the fourth quarter. However, Stornant said Wolverine would continue to invest in its key brands to position itself for accelerated growth in the first quarter of 2021.

Wolverine Worldwide’s portfolio consists of brands such as Merrell, Sperry, Hush Puppies, Saucony, Keds, Stride Rite and Chaco.

Saucony and Chaco stood out in the product line, singled out by Krueger for delivering double-digit revenue growth in the quarter.

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