About THE STRIDE RITE CORPORATION

Wolverine World Wide has the shoes to quiet your barking dogs. The company makes Hush Puppies casual shoes, as well as boots, sandals, and related apparel and accessories. Its boot lines include Merrell (outdoor), Bates (military), HyTest, and Wolverine (industrial); footwear is made under the Cushe brand and private labels. Wolverine also boasts several licenses from Caterpillar ("CAT") and Harley-Davidson, to make branded footwear. It sells worldwide through department and specialty stores, independent distributors, Internet retailers, and about 300 company-owned retail stores in the US and Canada. Wolverine also maintains about 60 consumer-direct Internet sites.

Operations

Wolverine designs, manufactures, sources, markets, licenses, and distributes branded footwear, apparel, and accessories.

The company realigned its segments into four in fiscal 2016: Wolverine Outdoor & Lifestyle Group (Merrell, Cat, Hush Puppies, Sebago brands and Chaco and Cushe footwear); Wolverine Boston Group (Sperry, Saucony and Keds brands and apparel); Wolverine Heritage Group (Wolverine, Bates uniform footwear, Harley-Davidson and HyTest footwear) and Wolverine Multi-Brand Group (Stride Rite brand and multi-brand consumer-direct businesses).

Wolverine Outdoor & Lifestyle Group and Wolverine Boston Group are the largest segments. Those segments each accounted for more than 35% of Wolverine's total revenue in fiscal 2016. Wolverine Heritage Group and Wolverine Multi-Brand Group accounted 14% and 12% of revenue in fiscal 2016, respectively.

Geographic Reach

Wolverine's footwear brands are sold in about 200 countries and territories in the US, the UK, and Canada as well as Latin America, Europe, the Middle East, Africa, and the Asia-Pacific region. The US accounted for almost 75% of the company's revenue in fiscal 2016.

The company's manufacturing operations are conducted in Michigan and it maintains distribution operations in Louisville, Kentucky; Howard City, Michigan; Cedar Springs, Michigan; Rockford, Michigan; Ontario, Canada; and Brookville, Ohio. It also has an administration, sales, and marketing operating facility in Waltham, Massachusetts.

The company operates 294 retail stores in the US and Canada and 56 consumer-direct websites.

Sales and Marketing

Wolverine markets directly through retail stores and also through its own sales force and customer service team, eCommerce websites, and a network of third-party distributors, sales representatives, licensees, and joint ventures. Its brand-specific marketing plans vary and may include print and radio advertising, search engine optimization, social networking sites, event sponsorships, in-store point-of-purchase displays, promotional materials and sales and technical assistance. The company directly sells its products to a range of customers, including department stores, national chains, catalog retailers, specialty retailers, mass merchants and internet retailers, governments and municipalities. Wolverine also uses a network of independent Shoemobile distribution outlets to distribute some work and occupational footwear brands at industrial facilities.

The company's advertising expenses were approximately $122 million in fiscal 2016. Wolverine's target consumers include both elite and casual runners (Saucony), young women (Keds), and industrial workers (Wolverine), among others.

Financial Performance

The company's net revenues decreased by 3% in fiscal 2016 due to lower sales from the Lifestyle Group and the Heritage Group. The decline in Lifestyle Group revenues was due to a drop in Stride Rite sales resulting from the closure of retail stores, while the Hush Puppies' decline was due to strategic reductions in the US department store channel.

Heritage Group's sales dip was due to the decline in revenues from Cat and Sebago as a result of a strengthened US dollar, while the Wolverine brand declined due primarily to unseasonably warm winter weather and higher inventory levels at key retail partners.

Performance Group revenues were flat for the year.

In 2016 Wolverine's net income decreased by 10% due to lower net revenues and an increase in restructuring and impairment costs, related to the company's decision to wind-down operations of its Cushe brand and indefinite-lived intangibles of its Stride Rite brand.

The company's operating cash flow was $215.5 million in fiscal 2016.

Strategy

Wolverine focuses on marketing campaigns and strategies in order to increase awareness of, and affinity for, the company's brands. The strategy will enhance the positioning of its brands, extend its brands into complementary product categories, expand geographically and expand its consumer-direct operations.

In 2015 the company invested in digital marketing and omni-channel initiatives. Its ecommerce nearly accounted for 20% growth in revenues, primarily in mobile. The company sold around 42 million units outside North America, contributing to an expanded geographic reach for brands. In 2016 it continued to strengthen its brands in digital, ecommerce, and mobile.

The company seeks to position its three largest brands, Merrell, Sperry and Saucony, for future global expansion and growth in 2016. In 2015, Saucony launched the new EVERUN technology. Sperry focused on pushing beyond boat shoes and developing as a lifestyle brand with boots and sneakers, as well as introducing the new Paul Sperry collection. The Merrell brand planned to launch hiking and trail running products in conjunction with go-to-market executions with key global retailers.

Wolverine initiated a restructuring plan in 2014, for realignment of the company's consumer-direct operations. As a part of the plan, the company closed 136 retail stores in connection (which included 58 retail stores in fiscal 2014, 46 retail stores in fiscal 2015, and the remainder in 2016).

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THE STRIDE RITE CORPORATION

500 Totten Pond Rd Ste 1
Waltham, MA 02451-1927
Phone: 1 (617) 824-6000
Fax: 1 (617) 616-6500

Stats

  • Employer Type: Public
  • Pres: Blake W Krueger
  • Svp And General Manager, Stride Rite Sourcing International: Thomas Montgomery
  • Senior Vice President: Tom Morgan
  • Employees: 3,100

Major Office Locations

  • Waltham, MA
  • Lexington, MA

Other Locations

  • Gilbert, AZ
  • Phoenix, AZ
  • Burbank, CA
  • Camarillo, CA
  • Canoga Park, CA
  • Carlsbad, CA
  • Citrus Heights, CA
  • Commerce, CA
  • Lakewood, CA
  • Milpitas, CA
  • National City, CA
  • Northridge, CA
  • Ontario, CA
  • Sacramento, CA
  • San Jose, CA
  • Santa Clara, CA
  • Temecula, CA
  • Westbrook, CT
  • Wilton, CT
  • Destin, FL
  • Ellenton, FL
  • Estero, FL
  • Jupiter, FL
  • Melbourne, FL
  • Ocala, FL
  • Orlando, FL
  • Saint Augustine, FL
  • West Palm Beach, FL
  • Alpharetta, GA
  • Kennesaw, GA
  • Aurora, IL
  • Oak Brook, IL
  • Richmond, IN
  • Vincennes, IN
  • Topeka, KS
  • Lexington, KY
  • Louisville, KY
  • Kenner, LA
  • Boston, MA
  • Braintree, MA
  • Hingham, MA
  • Wrentham, MA
  • Annapolis, MD
  • Bethesda, MD
  • Waldorf, MD
  • Kittery, ME
  • Rockford, MI
  • Albertville, MN
  • Branson, MO
  • Asheville, NC
  • Durham, NC
  • Raleigh, NC
  • Jackson, NJ
  • Marlton, NJ
  • Paramus, NJ
  • Somerset, NJ
  • Henderson, NV
  • Bayside, NY
  • Commack, NY
  • Merrick, NY
  • Middletown, NY
  • New York, NY
  • Sayville, NY
  • Staten Island, NY
  • Aurora, OH
  • Beavercreek, OH
  • Cincinnati, OH
  • Cleveland, OH
  • Mason, OH
  • Woodburn, OR
  • Whitehall, PA
  • Warwick, RI
  • Bluffton, SC
  • Columbia, SC
  • Florence, SC
  • Sioux Falls, SD
  • Garland, TX
  • Grapevine, TX
  • Humble, TX
  • Katy, TX
  • Lewisville, TX
  • Round Rock, TX
  • San Marcos, TX
  • Sugar Land, TX
  • Wichita Falls, TX
  • Ogden, UT
  • Harrisonburg, VA
  • Mc Lean, VA
  • Sterling, VA
  • Virginia Beach, VA
  • North Bend, WA
  • Madison, WI
  • Oshkosh, WI
  • Pleasant Prairie, WI
  • Charleston, WV
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