Wolverine World Wide(WWW)2025-02-20 02:30Financial Data and Key Metrics Changes - Fiscal 2024 revenue for the ongoing business was 495 million, exceeding expectations, with ongoing business revenue growing 3% year-over-year [42] - Fourth-quarter adjusted gross margin was 44%, a year-over-year increase of 620 basis points [45] - Full-year diluted earnings per share was 0.15 in 2023, indicating significant profitability improvement [41] Business Line Data and Key Metrics Changes - Saucony grew 7% in the fourth quarter, with low teens growth in the US and over 20% in EMEA, while Merrell posted a 1% increase [17][25] - Sweaty Betty's revenue was down 6% in the quarter, but gross margin improved by nearly 900 basis points [30] - Wolverine brand's revenue performance was encouraging, but trends remained inconsistent [32] Market Data and Key Metrics Changes - Strong growth in wholesale and international distributor channels was noted, partially offset by a decline in direct-to-consumer business [42] - The work group revenue increased by 21% in the fourth quarter, driven by strong demand for core franchises [44] Company Strategy and Development Direction - The company is focused on building brand capabilities and modernizing product lines to align with consumer trends [11] - Strategic investments include opening an innovation hub in Boston and enhancing marketing leadership across brands [12][14] - The company plans to accelerate growth in 2025, with a focus on new product launches and lifestyle expansion [51][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's direction and brand-building strategies, highlighting the potential for significant growth [65] - The outlook for 2025 includes expected revenue growth of 2.5% to 4.3%, with a focus on maintaining profitability while investing in brand growth [51][54] Other Important Information - The company reduced net debt to 241 million, down approximately 36% from last year, indicating effective inventory management [47] Q&A Session Summary Question: Saucony's growth and new doors - Management confirmed plans for 900 new doors for Saucony, with many being online, and emphasized responsible growth in the brand [76][77] Question: Merrell's new doors and reception - Management noted that Merrell is also opening new doors, particularly in female-focused specialty retail accounts, with positive early returns [78][79] Question: Gross margin sustainability - Management expressed satisfaction with gross margin improvements and indicated ongoing opportunities for further enhancements [81][84] Question: Interest expense guidance - Expected net interest and other expenses for 2025 are projected to be around 30 million, down from $39 million in 2024 [105] Question: State of the run specialty channel - Management reported that Saucony is gaining market share in the run specialty channel, driven by product innovation and strong performance [141][142]