ROCKFORD, Mich. (WOOD/AP) — On the same day as its third-quarter earnings were released, Wolverine Worldwide announced it was taking action to “transform” its company.
The Rockford-based company announced a “global workforce restructuring” but didn’t say exactly what that meant.
“We are committed to taking the necessary actions to best position the Company for future profitable growth,” wrote President and CEO Chris Hufnagel in the release. “Decisions like these that affect our team are difficult, and we are committed to supporting each team member through this transition.”
Wolverine outlined changes like creating a new “strategic center of excellence,” global licensing and planning teams, consolidated North American commercial structure, as well as tools for “a new set of advanced digital product management, design and development.”
The footwear maker says the reason for the chances is to “stabilize the business by divesting non-core assets, paying down debt, reducing inventory, and rightsizing our cost structure,” Wolverine wrote in a news release. “As the same time, we are redesigning the organization to become great global brand builders.”
Wolverine on Thursday reported third-quarter earnings of $8.6 million.
On a per-share basis, the company said it had net income of 11 cents. Earnings, adjusted for non-recurring gains, came to 7 cents per share.
The results matched Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was also for earnings of 7 cents per share.
The footwear maker posted revenue of $527.7 million in the period, topping Street forecasts. Five analysts surveyed by Zacks expected $515.1 million.
Wolverine expects full-year earnings in the range of 5 cents to 10 cents per share, with revenue in the range of $2.24 billion to $2.25 billion.
The announcements come after Wolverine recently sold Keds, the Hush Puppies intellectual property in China, Hong Kong and Macau, and North American Wolverine Leathers business. It said it’s also looking for “strategic alternatives” for the Sperry brand.