Wolverine World Wide (WWW) Q4 2024 earnings summary

Executive summary

• Achieved top-line growth in Q4 2024, with Merrell, Saucony (adjusted), Wolverine, and three of four global regions posting revenue increases year-over-year.

• Record Q4 gross margin, up over 600 basis points year-over-year, and earnings exceeded expectations.

• Completed company stabilization and transformation, including portfolio rationalization, divestitures of Keds, Wolverine Leathers, and Sperry, and exit from low-margin sales.

• Delivered record full-year gross margin and adjusted EPS up 507% year-over-year, with total shareholder return up 154%.

• Strengthened balance sheet, reducing debt to the lowest level since Q2 2021 and improving inventory to pre-pandemic levels.

Financial highlights

• Fiscal 2024 ongoing revenue: $1.75B, down 12.1% year-over-year due to non-recurring 2023 items and divestitures.

• Q4 revenue: $495M, up 3% year-over-year; Q4 adjusted gross margin: 44%, up 620 bps; Q4 adjusted operating margin: 10.2%.

• Full-year adjusted gross margin: 44.6%, up 470 bps; adjusted operating margin: 7.5%, up 360 bps.

• Full-year adjusted diluted EPS: $0.91, up 506.7% year-over-year.

• Inventory at year-end: $241M, down 36% year-over-year; net debt at year-end: $496M, down $246M.

Outlook and guidance

• FY2025 revenue expected at $1.795B–$1.825B, up 2.5%–4.3% (constant currency growth 4.2%–6.5%).

• Adjusted gross margin expected at 45.5%, up 90–100 bps; adjusted operating margin at 8.2%–8.3%.

• Adjusted diluted EPS expected at $1.05–$1.20, up 16%–41% year-over-year, including an $0.08 negative FX impact.

• Operating free cash flow expected at $70M–$80M; capital expenditures at $40M.

• Q1 2025 revenue expected at $395M, up 1.2%; Q1 gross margin 46.6%; Q1 adjusted EPS $0.10.