Wolverine World Wide, the parent company of Merrell, reported a nearly 30 per cent decline in revenue. Despite significant drops at three of its largest brands, CEO Chris Hufnagel noted that the results surpassed expectations. The company has undertaken a comprehensive transformation plan, including workforce restructuring and asset divestment. As part of this strategy, Wolverine sold the Sperry brand to Authentic Brands Group and closed a distribution center in Louisville, Kentucky.

In a move to innovate, Wolverine-owned brands Merrell and Sweaty Betty launched a collaborative women’s hiking collection earlier this year. The company has also seen changes in its executive team, with Taryn Miller appointed as CFO in May and Hufnagel becoming CEO in August 2023, after the departure of Brendan Hoffman.

Miller expressed optimism in the earnings release, stating, “Our second quarter results reflect the progress and the actions we’ve taken to improve the financial position of the Company.” Wolverine has successfully reduced its debt and inventory levels, ending Q2 with US $ 666 million in debt, a significant decrease from the previous year. Inventory also dropped to US $ 297.1 million, down 54.1 per cent year over year.

Hufnagel emphasized the company’s swift actions over the past year, focusing on consumer needs and a new global brand-building model. Wolverine adjusted its revenue outlook for the fiscal year, now expecting between US $ 1.71 billion and US $ 1.73 billion, representing a decrease of 14.2 per cent to 13.2 per cent year over year, slightly higher than previous estimates.