The parent company of Stride Rite, Sweaty Betty, Sperry, Merrell, and other footwear brands has started a formal process to divest or license its Keds brand and Wolverine Leathers business, both of which it described as “low-profit contributors.”
The move is in line with Wolverine’s strategy to reduce complexity and prioritize growth brands as it looks to increase long-term shareholder value.
In connection with the Keds and Wolverine Leathers brands and organizational changes, the company said it reduced part of its workforce earlier this week. It expects the initiative to result in approximately $30M in savings in 2023.
“We believe the recent changes to our group reporting structure and the announcement of strategic alternatives for Keds and Wolverine Leathers, as part of our regular assessment of the portfolio, will put the business on an accelerated path to improved profitability and restore Wolverine as a best-in-class brand house,” said Brendan Hoffman, president and CEO Wolverine. “In this rapidly evolving retail environment, agility is more important than ever. As such, I firmly believe that portfolio simplification and prioritization are essential to achieving our goals.”
