Wolverine Worldwide Announces Initiatives to Further Drive Shareholder Value

Wolverine World Wide, Inc. (NYSE: WWW) today announced planned changes to its portfolio. The Company has started a formal process to divest or license the Keds brand and Wolverine Leathers business, both of which are low-profit contributors. This move builds upon the Company’s strategy to reduce complexity and prioritize growth brands in an effort to increase long-term shareholder value.

Process to Divest or License Keds and Wolverine Leathers

“We believe the recent changes to our group reporting structure and the announcement of strategic alternatives for Keds and Wolverine Leathers, as part of our regular assessment of the portfolio, will put the business on an accelerated path to improved profitability and restore Wolverine as a best-in-class brand house,” said Brendan Hoffman, Wolverine Worldwide’s President and Chief Executive Officer. “In this rapidly evolving retail environment, agility is more important than ever. As such, I firmly believe that portfolio simplification and prioritization are essential to achieving our goals,” continued Hoffman.

In connection with these brand and organizational changes, the Company initiated a workforce reduction earlier this week. The Company expects this initiative to result in approximately $30 million in savings in 2023.

“These decisions, particularly those related to our impacted team members, were not taken lightly. We greatly value the contributions of our talented colleagues and are committed to supporting impacted team members in their transitions,” added Hoffman.

Other Profit and Cash Flow Improvement Initiatives

Including the impact from the workforce reduction noted above, the Company expects to realize total savings of approximately $45 million in 2023 from organizational synergies and other indirect cost areas. In addition, the Company plans to build on the supply chain cost initiatives started earlier this year and expects to realize approximately $20 million of savings in 2023.

The Company continues to focus on optimizing working capital as a meaningful source of cash over the coming months. On December 7, 2022, the Company finalized a new accounts receivable securitization program that is expected to generate $175 million in accelerated cash flow at favorable pricing. Inventory reduction remains a top priority with meaningful progress made thus far in the fourth quarter. Future cash flow generated from these efforts will be used to pay down outstanding debt.