Wolverine’s quarterly business goes “not so bad” as expected. “Thanks to effective reorganization, we head for expansion”

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Reorganization is proving to be effective. In fact, US Wolverine footwear group’s turnover decreases, but profits go up beyond expectations. The US company, currently in charge of Wolverine brand, also run (among others) Merrell, Sperry, Hush Puppies and Saucony (besides, they are the licensee worldwide for Cat and Harley-Davidson shoes). They announced that in 2018 first quarter their revenues reached 534,1 million dollars (around 450 million euros), therefore declining by 9,7%, however going beyond analysts’ expectations (532,8 million dollars in terms of earnings). Gross margin amounted to 42,7%, that is +3% compared to the year before (39,7%), while operating margin was 11,5%, compared to 5,8% in the previous year. Overseas sales carried out by Merrell (for the records, the brand keeps going up) and Sperry (back to very good performances after a dull period) went beyond expectations, driving quarterly outputs to a considerable extent and, therefore, changing the group’s business prospects for the whole year. “We have been implementing, for two years, a fierce business strategy based on transformation and reorganization; now we start enjoying the fruits of our labour. Our company is smarter now, and we are ready to head for expansion”- remarked Blake W. Krueger, chief executive officer and president of Wolverine.

 

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