Wolverine offers updates on ongoing strategic initiatives
December 26, 2016 - United States Of America
Marketer of branded casual and active apparel Wolverine Worldwide announced updates on the progress of its ongoing strategic initiatives, which includes the disinvestment of its Robeez brand. The various initiatives, which Wolverine had announced earlier, are expected to help the company to achieve 12 per cent adjusted operating margin by the end of 2018.
Under the healthier supply chain programme, during 2016, an assessment of third-party manufacturing was finalised and resulted in a tightening of the factory base by nearly one-third.
According to the company, this rationalisation strengthens its position with key manufacturing partners around the world.
In order to proactively address changing consumer behaviour, Wolverine has increased investment in ecommerce, while addressing unprofitable brick-and-mortar stores through closures, rent relief negotiations, and performance improvement initiatives.
Wolverine has also done an evaluation of its brand portfolio, under which, strategic alternatives for several brands were considered, including divestiture. Robeez was the first brand to reach resolution with the completion of a sale transaction expected in December 2016.
The company also began efforts to streamline the organisation, including the restructuring of the direct-to-consumer, apparel and accessories, EMEA, and Canadian operations. (AR)