Wolverine World Wide seeks to reassure shareholders about impact of coronavirus
As Covid-19 continues to spread, Rockford, Michigan-based footwear and apparel company Wolverine World Wide, Inc. announced the temporary closure of its retail stores through March 27 on Thursday, but chairman, CEO and president Blake Krueger was keen to point out that the group is “well positioned to weather the current challenges.”
Wolverine World Wide, which owns the Merrell, Sperry, Hush Puppies and Wolverine brands, among others, highlighted that its fleet of 90 stores accounts for just under $100 million of annual revenue. The company reported total net revenue of $2.27 billion in fiscal 2019.
The group also pointed out that its global e-commerce business is still fully operational and that it plans to deploy even more resources to support the continued functioning of this channel during the period of disruption.
According to the company, its supply chain is also operating at near full capacity, while its logistics operations and distribution centers are at full strength.
“During this time of uncertainty, we are implementing significant measures to further strengthen our balance sheet and enhance liquidity,” commented SVP and CFO Mike Stornant in a release. “This includes a disciplined focus on closely managing inventory and working capital, while adjusting discretionary spending in all parts of the organization. We are acting quickly and believe this proactive approach will benefit us in the short- and long-term.”
Nonetheless, due to the uncertainty surrounding the rapidly evolving health crisis, Wolverine World Wide has withdrawn the financial guidance that it issued on February 25. The company plans to provide further financial updates during its first-quarter earnings call.
Wolverine World Wide is the latest in a string of U.S.-based retailers to temporarily close their stores in response to the ongoing Covid-19 pandemic, joining the likes of Macy’s, Ralph Lauren, Nordstrom, Guess and Urban Outfitters.
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