Wolverine World Wide's Q4 2024: Unpacking Contradictions in Saucony's Growth Strategy and Merrell's Brand Direction

These are the key contradictions discussed in Wolverine World Wide's latest 2024Q4 earnings call, specifically including: Saucony's distribution expansion plans, Merrell's brand positioning, Saucony's growth and market share, and wholesale channel health:



Revenue and Profitability Improvement:
- Wolverine Worldwide reported revenue of $1.75 billion for fiscal 2024, down 12.1% versus the previous year.
- However, the fourth quarter saw a 3% revenue increase compared to the prior year, driven by improvements in cost savings and strategic initiatives.

Brand Performance and Market Share:
- Saucony's revenue grew 7% in the fourth quarter, excluding business model changes, supported by improved market share in the U.S. run specialty channel.
- This was due to innovations in both performance run and lifestyle expansion efforts.

Gross Margin Expansion:
- Wolverine Worldwide achieved a full-year adjusted gross margin of 44.6%, an improvement of 470 basis points over the previous year.
- This increase was attributed to supply chain cost savings, healthier inventory levels, and a healthier sales mix.

Strategic Investments and Brand Building:
- The company plans to invest more in brand-building initiatives, leading with investments in Saucony to drive growth.
- These investments include new concept stores, sponsorships, and improvements in product and merchandise capabilities.