Wolverine World Wide, Inc., the owner of a large brand portfolio, including Merrell, Saucony, Sperry, Sweaty Betty, Hush Puppies and Wolverine, announced actions to accelerate its ongoing strategic transformation into a “brand-led and consumer-obsessed growth company.” Chris Hufnagel, President and CEO, said: “We are moving with speed and urgency to transform the company, which will enable us to capitalize on our biggest growth opportunities. We are taking decisive steps to stabilize the business by divesting non-core assets, paying down debt, reducing inventory, and right-sizing our cost structure. At the same time, we are redesigning the organization to become great global brand builders.”
To stabilize the business, improve financial performance and provide future investment capacity for Wolverine Worldwide’s strategic growth brands, the company has accelerated and expanded its transformation efforts and the work of the Profit Improvement Office. To date, the company has identified initiatives expected to generate $215 million in annualized savings, including the global workforce restructuring announced today. Key changes made in connection with the organizational redesign include:
- “The Collective” - a new strategic center of excellence that includes a redesigned innovation, insights and trends team, an in-house creative and PR team, and an in-house creative production studio.
- Global Licensing - a new global licensing function to fully leverage the commercial opportunities of the portfolio around the world. This team will oversee and manage all of the company’s licensing businesses, including Hush Puppies and Stride Rite, as well as apparel and accessories programs.
- Integrated Planning - a new global planning function designed to significantly improve integrated demand, inventory and supply chain management while enhancing the company’s ability to respond to changes in consumer and market dynamics.
- Product Lifecycle Management & Digital Product Design - a new set of advanced digital product management, design and development tools that will further enhance the company’s product capabilities and efficiency.
- North American Commercial Structure - a consolidated North American commercial structure that aligns the company’s Canadian operations with those in the United States to improve efficiency and alignment.
The actions announced on Nov. 9 follow the recent sale of Keds, the Hush Puppies intellectual property in China, Hong Kong and Macau, the sale of the North American Wolverine Leathers business and the company’s announcement that it is pursuing strategic alternatives for the Sperry brand.
