Saucony, despite ongoing demand momentum in the ecommerce and US wholesale channels, suffered a 10 percent sales decline in Q3 to $104.8 million from $116.4 million in the period ended Sep. 28. EMEA sales were higher and Asia-Pacific sales were up “significantly,” adjusting for last year’s business model change in China. Parent Wolverine Worldwide believes the brand’s turnaround is underway and working thanks to new product introductions, design improvements and lower retail inventory levels.
For the Spring 2025 season, Saucony will have a new line-up of performance and lifestyle products and new distribution in 900+ US retail locations. On the performance side of the brand, there will be new The Guide and The Ride models and the introduction of new foam and the Endorphin Elite 2. In the lifestyle area, there will be updates to key styles and more collaborations with other brands and influencers. In Europe, Saucony is continuing to establish run clubs in the UK where the brand sponsors the London 10-K race. And the first Saucony store will open in London in 2025.
The Wolverine group’s overall operating income increased by 29 percent in Q3 to $35.2 million from $27.3 million. The gross margin soared by 450 basis points to 45.3 percent from 40.8 on lower supply chain costs and end-of-life inventory sales. Net income came in at $24.3 million, up from $9.0 million in the year-ago period, as revenues fell by 16.6 percent to $440.2 million from $527.7 million. Sales from ongoing business came in at $440 million which was $20 million above forecast.
With the results, Wolverine raised its FY24 outlook from continuing businesses. Annual sales are pegged at $1.73 to $1.745 billion, an approximate 12.8 percent decline from last year’s $1.99 billion. Annual adjusted gross margin is expected to increase by 460 basis points year-over-year to 44.5 percent, a record for the company.
