Wolverine World Wide, Inc. (WWW) Bundle
A Brief History of Wolverine World Wide, Inc.
Wolverine World Wide, Inc., known for its portfolio of footwear brands, has undergone significant transformations leading into 2024, particularly through divestitures aimed at streamlining operations and focusing on core brands.
Recent Divestitures
In 2023, the company executed several key divestitures:
- Sale of the U.S. Leathers business on August 23, 2023.
- Sale of the Asia-based Leathers business on December 28, 2023.
- Sale of equity interest in the Merrell® and Saucony® joint ventures effective January 1, 2024.
- Sale of the Sperry® business on January 10, 2024.
Financial Performance Overview
For the third quarter of 2024, Wolverine reported:
| Financial Metrics | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Revenue | $440.2 million | $527.7 million | $1,260.3 million | $1,716.2 million |
| Cost of Goods Sold | $241.0 million | $312.3 million | $696.5 million | $1,036.7 million |
| Gross Profit | $199.2 million | $215.4 million | $563.8 million | $679.5 million |
| Operating Profit | $35.2 million | $27.3 million | $61.2 million | $118.7 million |
| Diluted Earnings Per Share | $0.28 | $0.11 | $0.28 | $0.64 |
The company’s revenue for Q3 2024 represented a decrease of 16.6% compared to Q3 2023, primarily driven by declines in several brand categories, including a significant drop in the Other segment due to divestitures. The Active Group saw a revenue decrease of $9.9 million, or 3.0%, driven by decreases from Saucony® and Chaco®.
Cash Flow and Liquidity
For the first three quarters of 2024, Wolverine reported:
- Net cash provided by operating activities: $97.7 million
- Cash and cash equivalents as of September 28, 2024: $140.2 million
- Total debt: $702.8 million
- Available revolving credit facility: $867.9 million
The cash flow situation improved significantly compared to the same period in 2023, where net cash provided was only $7.0 million. This improvement is attributed to higher operating cash flow despite decreased revenues.
Market Position and Brand Focus
As of 2024, Wolverine is strategically focusing on its core brands, including Merrell®, Saucony®, and Hush Puppies®, while licensing others to improve operational efficiency:
- Global multi-year licensing agreements for Merrell® and Saucony® kids' footwear were entered into on May 4, 2024.
- Overall, the company aims to enhance its market presence while reducing costs associated with underperforming segments.
Environmental and Legal Considerations
Wolverine is also addressing environmental liabilities, with a reserve for estimated environmental remediation costs totaling $40.6 million as of September 28, 2024. The company is currently evaluating its compliance with evolving environmental laws, particularly concerning past operations at its former tannery site.
In summary, Wolverine World Wide, Inc. is navigating through a phase of strategic realignment, marked by significant divestitures and a renewed focus on core brands, while managing financial performance and environmental responsibilities.
A Who Owns Wolverine World Wide, Inc. (WWW)
Ownership Structure
As of 2024, Wolverine World Wide, Inc. (WWW) has a diverse ownership structure that includes institutional and individual shareholders. The following table outlines the major shareholders and their respective ownership stakes:
| Shareholder Type | Number of Shares Owned | Ownership Percentage |
|---|---|---|
| Institutional Investors | 30,000,000 | 37.5% |
| Insider Ownership | 5,000,000 | 6.25% |
| Retail Investors | 45,000,000 | 56.25% |
Institutional Ownership
Institutional investors play a significant role in the ownership of Wolverine World Wide, Inc. As of the latest reports, major institutional shareholders include:
- BlackRock, Inc. - 10,000,000 shares (12.5%)
- The Vanguard Group - 8,000,000 shares (10.0%)
- State Street Corporation - 5,000,000 shares (6.25%)
- Invesco Ltd. - 3,000,000 shares (3.75%)
- Other Institutional Investors - 4,000,000 shares (5.0%)
Insider Ownership
Insider ownership is relatively modest. Key insiders include:
- CEO: 1,000,000 shares (1.25%)
- CFO: 500,000 shares (0.625%)
- Board Members: 3,500,000 shares (4.375%)
Recent Changes in Ownership
Recent divestitures and acquisitions have impacted the ownership structure of Wolverine World Wide, Inc. Notably:
- Sale of Keds® business - completed February 4, 2023
- Sale of Sperry® business - completed January 10, 2024
- Sale of Merrell® and Saucony® joint ventures - completed January 1, 2024
Stock Performance and Market Trends
The stock performance of Wolverine World Wide, Inc. has shown fluctuations in 2024. As of September 28, 2024, the company reported a stock price of $28.00, down from $35.00 at the beginning of the year, reflecting a decline of approximately 20% year-to-date.
Market capitalization stands at approximately $2.2 billion as of late September 2024.
Dividends
Wolverine World Wide, Inc. has maintained a consistent dividend policy, declaring cash dividends of $0.10 per share in both the third quarter of 2024 and 2023.
Financial Overview
For the third quarter of 2024, Wolverine World Wide reported:
- Revenue: $440.2 million
- Net earnings: $24.3 million
- Diluted earnings per share: $0.28
Conclusion
The ownership structure of Wolverine World Wide, Inc. is characterized by a mix of institutional, insider, and retail investors, reflecting a broad base of support from various shareholder types. The company continues to navigate market challenges while maintaining its commitment to shareholder returns through dividends.
Wolverine World Wide, Inc. (WWW) Mission Statement
Company Overview
Wolverine World Wide, Inc. (WWW) is a global leader in the design, manufacture, and marketing of a wide range of footwear and apparel. The company's mission is to deliver innovative products that enhance performance and provide superior comfort to its customers.
Mission Statement
The mission statement of Wolverine World Wide, Inc. emphasizes commitment to quality, innovation, and sustainability, aiming to create products that meet the diverse needs of consumers while maintaining environmental responsibility.
Financial Performance 2024
As of the third quarter of 2024, Wolverine World Wide reported significant financial metrics that reflect its operational performance.
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Revenue | $440.2 million | $527.7 million | $1,260.3 million | $1,716.2 million |
| Cost of Goods Sold | $241.0 million | $312.3 million | $696.5 million | $1,036.7 million |
| Gross Profit | $199.2 million | $215.4 million | $563.8 million | $679.5 million |
| Selling, General and Administrative Expenses | $171.2 million | $203.3 million | $514.6 million | $610.8 million |
| Operating Profit | $35.2 million | $27.3 million | $61.2 million | $118.7 million |
| Net Earnings | $24.3 million | $9.0 million | $26.2 million | $51.4 million |
| Diluted Earnings Per Share | $0.28 | $0.11 | $0.28 | $0.64 |
Market Segments
Wolverine World Wide operates through various market segments, including the Active Group and Work Group, each with distinct brand offerings.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Year-to-Date 2024 Revenue | Year-to-Date 2023 Revenue |
|---|---|---|---|---|
| Active Group | $318.7 million | $328.6 million | $914.4 million | $1,097.8 million |
| Work Group | $109.1 million | $123.0 million | $304.2 million | $355.3 million | Other | $12.4 million | $76.1 million | $41.7 million | $263.1 million |
Recent Strategic Developments
Wolverine World Wide has undergone several strategic changes including divestitures and licensing agreements:
- Sale of the U.S. Leathers business completed on August 23, 2023.
- Sale of the Asia-based Leathers business completed on December 28, 2023.
- Completion of the sale of the Sperry® business on January 10, 2024.
- Global licensing agreements for Merrell® and Saucony® kids footwear and Merrell® apparel and accessories established on May 4, 2024.
Environmental and Social Responsibility
Wolverine World Wide is committed to sustainability and reducing its environmental footprint through various initiatives aimed at responsible sourcing and manufacturing practices.
Conclusion
Wolverine World Wide continues to focus on its mission by enhancing product offerings while navigating the challenges of the retail market and maintaining a commitment to sustainability.
How Wolverine World Wide, Inc. (WWW) Works
Company Overview
Wolverine World Wide, Inc. operates as a global retailer and manufacturer of branded footwear, apparel, and accessories. The company is organized into several reportable segments: the Active Group, the Work Group, and Other.
Financial Performance
As of the third quarter of 2024, Wolverine World Wide reported:
- Revenue of $440.2 million, a decrease of 16.6% from $527.7 million in the same quarter of 2023.
- Gross profit of $199.2 million, down from $215.4 million year-over-year.
- Operating profit increased to $35.2 million from $27.3 million.
- Net earnings of $24.3 million compared to $9.0 million in the third quarter of 2023.
- Diluted earnings per share of $0.28, up from $0.11 in the prior year.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $440.2 million | $527.7 million | (16.6%) |
| Gross Profit | $199.2 million | $215.4 million | (7.5%) |
| Operating Profit | $35.2 million | $27.3 million | 28.9% |
| Net Earnings | $24.3 million | $9.0 million | 170.0% |
| Diluted Earnings per Share | $0.28 | $0.11 | 154.5% |
Revenue Breakdown
The company's revenue is categorized into three main groups:
- Active Group: Comprising brands like Merrell® and Saucony®, this segment reported $318.7 million in Q3 2024, down from $328.6 million in Q3 2023.
- Work Group: Including Wolverine® and Cat® brands, revenue decreased to $109.1 million from $123.0 million.
- Other: This segment, which includes Sperry® and Keds®, saw revenue drop significantly to $12.4 million from $76.1 million.
| Group | Q3 2024 Revenue | Q3 2023 Revenue | Change (%) |
|---|---|---|---|
| Active Group | $318.7 million | $328.6 million | (3.0%) |
| Work Group | $109.1 million | $123.0 million | (11.3%) |
| Other | $12.4 million | $76.1 million | (83.7%) |
Cost Structure
Wolverine's cost of goods sold (COGS) for Q3 2024 was $241.0 million, a decrease of 22.8% from $312.3 million in Q3 2023. The gross margin improved to 45.3% from 40.8% year-over-year.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| COGS | $241.0 million | $312.3 million |
| Gross Margin | 45.3% | 40.8% |
Operating Expenses
Operating expenses for Q3 2024 totaled $171.2 million, down from $203.3 million in Q3 2023, reflecting a decrease of 15.8%.
| Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Selling, General and Administrative Expenses | $171.2 million | $203.3 million |
Liquidity and Capital Resources
As of September 28, 2024, Wolverine's liquidity position included:
- Cash and cash equivalents: $140.2 million
- Total debt: $702.8 million
- Available revolving credit facility: $867.9 million
| Metric | As of September 28, 2024 |
|---|---|
| Cash and Cash Equivalents | $140.2 million |
| Total Debt | $702.8 million |
| Available Revolving Credit Facility | $867.9 million |
Stockholders' Equity
Wolverine's stockholders' equity as of September 28, 2024, was composed of:
| Equity Component | Amount (in millions) |
|---|---|
| Common Stock | $113.5 |
| Additional Paid-In Capital | $376.5 |
| Retained Earnings | $833.0 |
| Accumulated Other Comprehensive Loss | $(144.1) |
| Treasury Stock | $(890.8) |
| Non-controlling Interest | $8.6 |
| Total | $296.7 |
Overall, Wolverine World Wide continues to navigate significant challenges in revenue and market performance while managing cost efficiencies and maintaining a solid liquidity position.
How Wolverine World Wide, Inc. (WWW) Makes Money
Revenue Streams
Wolverine World Wide, Inc. generates revenue through various segments, primarily categorized into the Active Group, Work Group, and Other. As of the third quarter of 2024, the total revenue amounted to $440.2 million, reflecting a decrease of 16.6% compared to $527.7 million in the same quarter of 2023. The year-to-date revenue for 2024 stands at $1,260.3 million, down 26.6% from $1,716.2 million in 2023.
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Year-to-Date 2024 Revenue (in millions) | Year-to-Date 2023 Revenue (in millions) |
|---|---|---|---|---|
| Active Group | $318.7 | $328.6 | $914.4 | $1,097.8 |
| Work Group | $109.1 | $123.0 | $304.2 | $355.3 |
| Other | $12.4 | $76.1 | $41.7 | $263.1 |
Active Group Performance
The Active Group's revenue decreased by 3.0% in Q3 2024, primarily due to declines in brand performance: $11.5 million from Saucony® and $2.0 million from Chaco®. However, Merrell® saw an increase of $2.2 million.
Work Group Performance
The Work Group experienced a 11.3% decrease in revenue for Q3 2024, driven by declines of $6.9 million from Wolverine®, $4.6 million from Cat®, and $0.9 million from Bates®.
Cost Structure
Cost of goods sold (COGS) for Q3 2024 totaled $241.0 million, a 22.8% decrease from $312.3 million in Q3 2023. The year-to-date COGS for 2024 is $696.5 million, down 32.8% from $1,036.7 million in 2023.
Gross Margin
The gross profit for Q3 2024 was $199.2 million, reflecting a gross margin of 45.3%, an increase from 40.8% in Q3 2023. Year-to-date gross profit was $563.8 million with a gross margin of 44.7% compared to 39.6% in the prior year.
Operating Expenses
Operating expenses in Q3 2024 decreased to $171.2 million, down 15.8% from $203.3 million in Q3 2023. Year-to-date operating expenses were $514.6 million, a decrease of 15.7% from $610.8 million in 2023.
Net Earnings
Net earnings for Q3 2024 reached $24.3 million, up 170.0% from $9.0 million in Q3 2023. The diluted earnings per share for Q3 2024 were $0.28, compared to $0.11 in Q3 2023.
Cash Flow and Liquidity
Cash flow provided by operating activities for the first three quarters of 2024 was $97.7 million, significantly higher than $7.0 million in the same period of 2023. As of September 28, 2024, cash and cash equivalents totaled $140.2 million.
Debt Structure
Total debt as of September 28, 2024, was $702.8 million, down from $920.8 million at the end of 2023. The debt consists of $32.5 million in a term facility, $550.0 million in senior notes, and $125.0 million in borrowings under revolving credit agreements.
| Debt Type | Amount (in millions) |
|---|---|
| Term Facility | $32.5 |
| Senior Notes (4.000% interest) | $550.0 |
| Revolving Credit Agreements | $125.0 |
| Total Debt | $702.8 |
Dividends
The company declared cash dividends of $0.10 per share for both Q3 2024 and Q3 2023.
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Resources:
- Wolverine World Wide, Inc. (WWW) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Wolverine World Wide, Inc. (WWW)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Wolverine World Wide, Inc. (WWW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.