Wolverine Worldwide Provides Business Update on Second Quarter Trends
ROCKFORD, Mich., June 03, 2020 (GLOBE NEWSWIRE) -- Wolverine World Wide, Inc. (NYSE: WWW) (the “Company”) today provided a business update ahead of investor meetings taking place during the Baird 2020 Global Consumer, Technology, and Services Conference on June 4, 2020. The Company noted that while the COVID-19 pandemic greatly limited its global wholesale business during the first nine weeks of the second quarter, its powerful brands, strong digital capabilities, and diversified global business model have driven better-than-expected sales performance during this period. While the second quarter is still expected to be the most challenging quarter of fiscal 2020, the Company’s work to proactively maximize its strong eCommerce platform and implement cash generation initiatives is anticipated to result in more than $20 million of operating cash flow in the quarter, significantly exceeding its expectations entering the quarter.
Through the first nine weeks of the second quarter of fiscal 2020:
- Owned eCommerce grew more than 90% compared to the same nine-week period in the prior year, delivering more than 40% of the Company’s revenue. Performance brands Merrell and Saucony as well as
work brands Wolverine and Cat Footwear led this performance with strong triple-digit eCommerce growth.
- Owned retail stores started to reopen, and the Company plans to open approximately 70 of its more than 90 stores by mid-June. As stores reopen, the focus has been and will continue to be on the
health and safety of customers and employees. Employees will wear face masks, checkout protocol and traffic patterns will be adapted to limit touchpoints, store hours will be reduced, and enhanced
cleaning procedures will be in place.
- Online sell-through of the Company’s U.S. wholesale customers accelerated to strong double-digit growth after a few initial weeks of decline and grew double-digits overall during the nine-week
- Sell-through trends in retail stores operated by the Company’s wholesale customers were down year-over-year, but steadily improved during the nine-week period with at-once order trends
exceeding the Company’s expectations entering the quarter. Certain key U.S. retailers remained open during the COVID-19 pandemic shutdown, including retailers in the farm channel among others.
Re-order demand from these retailers primarily benefitted the Company’s work and outdoor performance businesses.