Wolverine eyes expansion, omnichannel initiatives

Leading branded footwear company Wolverine is eyeing 2015 as a year to focus on omnichannel and expansion.

The parent company of Stride-Rite, Merrell and other brands says it is poised to realign its resources to address a fundamental shift in consumer shopping behavior and allow for greater focus on important omnichannel initiatives.

The Michigan-based company also said that its fourth quarter net income rose as sales climbed in every region except North America. Wolverine Worldwide earned $10 million, or 10 cents per share, on revenues of $808.9 million, for the period ended Jan. 3. That compares with 22 cents per share on revenues of $740.8 million a year earlier. Analysts, on average, expected adjusted earnings of 30 cents per share on revenues of $808.11 million.

"We had a strong close to the year, with nine of our 16 brands generating double-digit revenue growth in the fourth quarter, and our two largest brands, Merrell and Sperry, delivering mid single-digit and high single-digit revenue growth, respectively," said Blake W. Krueger, Wolverine Worldwide's chairman, CEO, and president. "I am equally pleased with our full-year performance, which was highlighted by our fifth consecutive year of record revenue, as well as record adjusted earnings. We believe the strategic investments we are planning for our brands position us to capitalize on the many opportunities we've identified to accelerate our growth around the world."

The maker of Merrell and Hush Puppies brands said fourth quarter revenues grew in every region except North America, where sales were flat in the U.S. and fell in Canada. Wolverine Worldwide expects fiscal 2015 year-end earnings per share to range between $1.71 to $1.78 on revenues between $2.82 billion to $2.87 billion. Analysts anticipate earnings of $1.65 per share on revenue of $2.88 billion. On Feb. 12, the company's board of directors declared a quarterly cash dividend of 6 cents per share of common stock to be paid on May 1 to stockholders of record on April 1.

“The company intends to increase its investments behind consumer-demand creation, omnichannel initiatives and international expansion -- all focused on deepening connections with consumers, elevating brand awareness and driving sustained growth for the portfolio,” the company said in a statement. "The company plans to incrementally invest approximately $30 million in these brand-building initiatives in fiscal 2015.”

Wolverine’s portfolio of highly recognized are carried by leading retailers in the U.S. and globally in approximately 200 countries and territories.