Wolverine World Wide(WWW) - 2024 Q4 - Annual Results

Revenue Performance - Fourth quarter 2024 total revenue was $494.7 million, a decrease of 6.1% compared to $526.7 million in Q4 2023[5] - Ongoing total revenue for 2024 was $1,750.4 million, down 12.1% from $1,992.1 million in 2023[7] - Revenue for Q4 2024 was $494.7 million, a decrease of 6.1% compared to $526.7 million in Q4 2023[25] - Total revenue for Fiscal 2024 was $1,755.0 million, down 21.8% from $2,242.9 million in Fiscal 2023[39] - Adjusted revenue for ongoing business in 2023 was $1,992.1 million after accounting for divestitures, down from $2,242.9 million reported revenue[56] Profitability Metrics - Gross margin improved to 44.0% in Q4 2024, up 740 basis points from 36.6% in Q4 2023[5] - Diluted earnings per share for Q4 2024 was $0.29, a significant increase of 125.2% compared to a loss of $1.15 in Q4 2023[5] - Gross profit increased to $217.7 million in Q4 2024, with a gross margin of 44.0%, up from 36.6% in Q4 2023[18] - Operating profit for the fiscal year ended December 28, 2024, was $101.0 million, compared to a loss of $68.2 million in the previous year[18] - Net earnings attributable to Wolverine World Wide, Inc. for Q4 2024 were $24.6 million, a significant recovery from a loss of $91.2 million in Q4 2023[18] - Operating profit for Fiscal 2024 was $101.0 million, with an operating margin of 5.8%, compared to an operating loss of $68.2 million and an operating margin of (3.0)% in Fiscal 2023[47] Expenses and Cost Management - Operating expenses for Fiscal 2024 totaled $680.5 million, down from $940.7 million in Fiscal 2023, leading to adjusted operating expenses of $650.5 million[44] - Operating expenses for Fiscal 2024 Q4 were $177.9 million, significantly reduced from $379.9 million in Fiscal 2023 Q4, resulting in adjusted operating expenses of $167.0 million[30] Future Projections - The company expects 2025 revenue to be approximately $1.795 to $1.825 billion, representing growth of approximately 2.5% to 4.3% compared to 2024 ongoing business[11] - Projected gross margin for 2025 is approximately 45.5%, an increase of 100 basis points compared to 2024[11] - The effective tax rate for 2025 is expected to be approximately 18.0%[11] - Adjusted diluted earnings per share for 2025 is projected to be in the range of $1.05 to $1.20, including an approximate $0.08 negative impact from foreign currency fluctuations[11] Balance Sheet and Cash Flow - Inventory at the end of Q4 2024 was $241 million, down $133 million or approximately 35.6% year-over-year[6] - Net debt decreased to $496 million, down $246 million or approximately 33.1% compared to the prior year[6] - Cash and cash equivalents at the end of the fiscal year were $152.1 million, a decrease from $184.6 million at the beginning of the year[23] - Total assets decreased to $1,668.8 million as of December 28, 2024, down from $2,062.8 million in the previous year[20] - The company reported a net cash provided by operating activities of $180.1 million for the fiscal year, an increase from $121.8 million in the previous year[23] Strategic Initiatives - The company plans to continue focusing on its direct-to-consumer operations and expanding into new markets[24] - The company is undergoing a transformation strategy to improve its brand portfolio and operational efficiency[24]