The company believes those two brands, along with active brand Sweaty Betty, have the most potential to grow and is focusing its efforts and investments on them.
Wolverine also continues to concentrate on its work division, which includes brands such as Wolverine, CAT, and Bates.
In the lifestyle division, the company announced Wednesday that it is exploring strategic alternatives for Sperry, which saw a 12.9% decline in constant currency revenue in the quarter. Wolverine sold the Keds brand earlier this year and is transitioning Hush Puppies to a licensing model.
Merrell Q1 Results
Merrell’s revenue totaled $180.3 million, a 20.3% increase in constant currency. The new MOAB 3 became the top-selling shoe in the U.S. hike market in the first quarter, allowing the brand to gain market share, Wolverine said.
Merrell is also expanding its brand reach with the more fashionable 1TRL collection, which consists of “elevated products that challenge the traditional perceptions of the trail footwear aesthetic,” according to the company.
The collection has been well-received, and Merrell opened a 1TRL store in Tokyo during the quarter with more stores planned.
Merrell revenue is expected to grow mid-single digits for the full fiscal year.
Saucony Results – Lifestyle a Priority
The running brand also had a strong quarter, with revenue totaling $132.6 million, a 24.5% increase in constant currency.
Highlights for the quarter included the launch of the Endorphin Elite, which recorded 74% sell-through on Saucony.com in the first week.
A major Saucony initiative going forward: the global expansion of the brand’s lifestyle Originals business, which the company believes has high growth potential.
Saucony revenue is expected to grow in the high-single digits for the year.
Sweaty Betty Restructuring
Sweaty Betty’s first quarter revenue totaled $47.5 million, a 3.1% decrease in constant currency.
The company said the active brand has stabilized in its home markets of the United Kingdom and Ireland.
Wolverine plans to improve Sweaty Betty’s profitability by integrating it more into the rest of the portfolio.
In March, Wolverine announced it was consolidating Sweaty Betty’s London office space and reducing its workforce in the UK.
For the full year, Sweaty Betty is expected to grow in the low-single digits.
If only the ongoing businesses are included, revenue totaled $580.4 million, a 2.9% increase in constant currency.
By division, active grew 11.5% in reported revenue while work and lifestyle declined 17.3% and 8.1%, respectively.
The international business was a standout, with revenue growing 18% in constant currency. Adjusted earnings per share for the ongoing business totaled 9 cents, a 68% decline in constant currency compared to the same period last year.
The bottom line came in better than expected – the company had forecast EPS of 5 cents on an adjusted basis.