Merrell, Patagonia Footwear 2Q sales slip, but revenue up for parent Wolverine on acquisitions - SNEWS

Merrell, Patagonia Footwear 2Q sales slip, but revenue up for parent Wolverine on acquisitions

Performance footwear sales at Wolverine Worldwide, including those of Merrell, Patagonia Footwear and Cushe fell 4.8 percent as a group in 2Q.
Author:
Updated:
Original:

Performance footwear sales at Wolverine Worldwide (NYSE: WWW), which include Merrell, Chaco, Patagonia Footwear and Cushe, fell 4.8 percent as a group in the second quarter 2013, the company reported Tuesday.

Good thing for Wolverine it acquired and added Saucony to the category to help beef up the results. With Saucony included, Wolverine’s performance footwear rose 33.8 percent, from a year ago, to $199.7 million. Company officials also noted that the Chaco brand, by itself, produced a double-digit percentage sales increase for the quarter.

The acquisitions, including lifestyle brands Keds and Sperry Top-Sider, boosted Wolverine’s overall second-quarter revenue up 88 percent to a record $587.8 million. Had the acquisitions been included for comparison a year ago (pro forma), the company’s total sales still gained, albeit at a more modest pace of 5.5 percent, officials said. Sperry Top-Sider, Keds, Saucony, and Harley-Davidson Footwear sales led the revenue growth in the quarter.

Wolverine’s quarterly profit slipped to $18.1 million versus $20.3 million a year ago, partly on acquisition charges, but company officials were upbeat, raising 2013 profit guidance, while keeping full-year revenue projections in the range of $2.7 to $2.775 billion, which would represent pro forma growth of between 6 and 8.9 percent, versus 2012.

Second-quarter (April-June) outdoor and performance footwear sales are expected to be shaky for some brands as late winter weather pummeled incoming spring/summer styles and consumers pulled back from barefoot and minimalist trends. As reported earlier in SNEWS, Wolverine officials had predicted a sluggish start to the year for its performance lines.

According to Leisure Trends Group, footwear sales at outdoor retail fell 12 percent in April 2013, including a 65 percent drop in minimalist multi-sport shoe sales and a 22 percent drop in minimalist trail running shoe sales. Footwear sales did rebound nicely in the final month of the quarter (May) as summer temperatures warmed up, bringing the year-to-date performance of footwear sales back to positive figures — albeit barely — increasing less than a percent.

--David Clucas

Correction: A previous version of this incorrectly stated the second-quarter results for the Chaco brand. While second-quarter sales of Wolverine's Performance Group, of which Chaco is part of, did decline as a group, the Chaco brand by itself reported higher second-quarter sales.

Related

WolverineWorldwideBrands

Merrell sales rebound for Wolverine Worldwide in 3Q

After a choppy first half of the year, Wolverine Worldwide’s Performance Footwear group — including Merrell and Chaco brands — rebounded in the third quarter 2013 with strong sales in almost every category. The group, which also includes Patagonia Footwear and Cushe brands, ...read more

WolverineWorldWide_Logo.jpg

Merrell, Chaco, Patagonia Footwear lift Wolverine 2Q sales

A 2.7 percent gain in Merrell, Chaco, and Patagonia Footwear sales helped parent company Wolverine Worldwide (NYSE: WWW) eke out a revenue rise for the second quarter 2012, despite weakness in the company’s lifestyle and heritage groups, particularly from Europe. The Rockford ...read more

PatagoniaFootwearSloper

Patagonia ends license deal with Wolverine

Fall 2014 footwear orders will be the last for the foreseeable future from Patagonia Footwear after the contract between Patagonia and its licensed manufacturer Wolverine has come to an abrupt end. Patagonia’s 8 year-old footwear line of outdoor performance shoes, with a focus ...read more

WolverineWorldWide_Logo.jpg

Merrell 3Q sales slip on weak outdoor retail, parent firm Wolverine Worldwide lowers 2012 expectations

Wolverine Worldwide (NYSE: WWW), parent to Merrell, Chaco, Patagonia Footwear and now Saucony brands, reported lower revenue and profit for the third quarter 2012, citing weakness in outdoor retail and Europe. Wolverine’s Outdoor group, a highlight for the company during past ...read more

WolverineWorldWide_Logo.jpg

Wolverine posts record 2Q revenue boosted by Merrell, outdoor footwear

Wolverine Worldwide (NYSE: WWW) reported 20-percent revenue growth for its fiscal second quarter led by 30-percent growth from its outdoor footwear brands, including Merrell, Chaco and Patagonia Footwear. The Rockford, Mich.-based footwear company reported record revenue of ...read more

Jarden Outdoor

Parent to K2, Marmot sees 1Q outdoor sales slip, takes conservative outlook for winter 2014/15

Jarden Corp. (NYSE:JAH), parent to Marmot, K2, Coleman and Backcountry Access and other outdoor and wintersports brands, saw its outdoor segment sales slip 1.6 percent for the first quarter 2014, as there was less leftover ski inventory to sell late in the season, officials said. ...read more

2013FootwearSales

What’s tripping up footwear sales

Two steps forward, one step back. Footwear was the big savior for many outdoor brands and retailers on the heels of the recession. Fast-moving trends — be it minimalist, Vibram Five Fingers, Crocs, Uggs or Sanuks — skyrocketed sales while lower import tariffs fueled higher ...read more

Chaco_Logo.gif

Chaco now part of Wolverine Outdoor Group alongside Patagonia Footwear, Merrell

Making official the story SNEWS® broke Jan. 7 (click here to read “Merrell's parent Wolverine in due diligence to acquire Chaco”), Wolverine World Wide announced early Thursday morning Jan. 22 that it had completed the acquisition of Chaco, a performance outdoor footwear brand ...read more

BlackDiamondIncLogo

Black Diamond Inc. 1Q sales up on acquisitions, but income swings to loss on spring delay

Black Diamond Inc.’s (NYSE:BDE) recent acquisitions of Poc Sports and Pieps helped it increase sales for the first quarter 2013, but delayed spring orders (in the face of late winter weather) and a reorganization of its Japanese distribution weighed on margins and led to a ...read more