“We are playing smarter and faster”, say Wolverine. 2017 turnover dropped again though, and Wall Street is quite disappointed

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US Wolverine World Wide footwear group are happy about 2017 achievements, considering their reorganization plan announced at the end of 2016. Such plan entailed the transfer of Sebago, the off-board entrustment of Stride Ride’s license and the termination of the supply contract formerly signed with the US Department of Defense. Finally yet importantly, they closed 215 direct sale stores (at present they run 80 left). Yet, conversely, Wall Street is not happy about the group’s performance in the last quarter of 2017 and in the first months of the year currently underway. Wolverine (whose top brands are still Sperry, Saucony and, above all, Merrell) have been facing a decline of their quarterly revenues, which decreased by 20% (that is, 578,6 million dollars, while analysts were expecting 580,3), and a financial loss of 60,8 million dollars. In the same period, Merrell expanded their business in double figures and Chaco went up by 30%; in contrast, Hush Puppies (casual), Sperry, Saucony (running sneakers) and Keds went down on a negative trend. Revenues on annual basis amounted to 2,35 billion dollars (-5,8%). Manufacturing inventory dropped by over 20%, whereas online business increased by the same percentage; furthermore, the company is planning to invest 40 million dollars to expand their retail business sales in Asia. “Most of the work is behind us at this point – remarked CEO Blake Krueger -: today our company is playing smarter and faster”.

 

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