Wolverine World Wide (WWW) Q4 2024 earnings summary

Executive summary

• Achieved a pivotal turnaround in 2024, exceeding expectations across key financial metrics, stabilizing the business, and focusing on brand revitalization, operational improvements, and portfolio rationalization.

• Ended 2024 with the lowest debt since Q2 2021, cleanest inventory position since the pandemic, and record full-year gross margin and EPS nearly six times higher than last year.

• Strategic investments in product innovation, marketing, and talent have positioned the company for sustainable growth, with a new focus on building brand equity and expanding market presence.

• Divested non-core businesses (Keds, Wolverine Leathers, Sperry) to focus on core brands and improve comparability, with ongoing business results excluding these impacts.

Financial highlights

• Fiscal 2024 ongoing revenue was $1.75B, down 12.1% year-over-year due to non-recurring items in 2023; Q4 revenue grew 3% year-over-year to $495M.

• Full-year adjusted gross margin rose 470 bps to 44.6%; Q4 adjusted gross margin reached 44%, up 620 bps year-over-year.

• Adjusted operating margin for 2024 was 7.5% (+360 bps); Q4 adjusted operating margin was 10.2%.

• Adjusted diluted EPS for 2024 was $0.91 (up 507% year-over-year); Q4 adjusted diluted EPS was $0.42.

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

Outlook and guidance

• 2025 revenue expected at $1.795B–$1.825B (+2.5%–4.3% year-over-year), including a $40M currency headwind; constant currency growth expected at 4.2%–6.5%.

• Adjusted gross margin projected at 45.5% (+90 bps); adjusted operating margin at 8.3%.

• Adjusted diluted EPS expected at $1.05–$1.20, up 25%–41% constant currency, including an $0.08 negative FX impact; operating free cash flow forecasted at $70M–$80M.

• Q1 2025 revenue guidance is $395M (+1.2% year-over-year); Q1 gross margin expected at 46.6%.