ROCKFORD, Mich. - Wolverine World Wide, Inc. (NYSE:WWW), a recognized leader in the footwear and apparel industry, has announced the formation of two global licensing agreements aimed at expanding its children's footwear and apparel offerings. The agreements involve partnerships with Vida Shoes International for kids' footwear and Centric Brands LLC for Merrell apparel and accessories.
Under the first agreement, Vida Shoes International, a longstanding partner of Wolverine Worldwide, will become the global licensee for Merrell and Saucony children’s footwear. Vida has been associated with the company since 2017 through the licensing of the Stride Rite brand and is known for sourcing over 20 million pairs of children's footwear annually.
The second agreement grants Centric Brands LLC the global rights to manufacture and distribute Merrell branded apparel and accessories, including items such as packs, bags, and hats. Centric Brands is recognized for its extensive experience in licensing, currently partnering with over 100 consumer brands across various categories.
The new licensing partnerships are overseen by Bornie Del Priore, Wolverine Worldwide’s President of Global Licensing, who brings years of experience to the role, including previous leadership positions at Tommy Hilfiger and Ralph Lauren (NYSE:RL).
Chris Hufnagel, President and CEO of Wolverine Worldwide, expressed confidence in the growth of the Merrell and Saucony brands through these partnerships. He emphasized the company's strategy to leverage Vida’s expertise in children’s products and the potential for Merrell to develop into a comprehensive global lifestyle brand in collaboration with Centric.
Wolverine Worldwide views these partnerships as strategic moves that will drive value, reduce risk, and maximize the potential of its brands. The company continues to focus on transforming itself into a brand-centric organization, aiming to enhance its global presence.
The information for this article is based on a press release statement from Wolverine World Wide, Inc.
InvestingPro Insights
As Wolverine World Wide, Inc. (NYSE:WWW) embarks on expanding its global presence through strategic licensing agreements, the company's financial health and market performance provide valuable context for investors.
According to InvestingPro data, Wolverine World Wide has a market capitalization of $858.24 million, indicating its size and significance in the industry. Despite facing a challenging period with a revenue decline of -16.46% over the last twelve months as of Q1 2023, the company has managed to maintain a gross profit margin of 38.9%, showcasing its ability to retain a significant portion of sales as gross profit.
InvestingPro Tips highlight two contrasting aspects of Wolverine's current financial situation. While analysts expect the company's net income to grow this year, they also anticipate a sales decline in the current year.
This suggests that cost management and operational efficiencies may be key areas of focus for the company in the near term. Moreover, the stock's price has experienced a large uptick over the last six months, with a 43.41% price total return, reflecting investor optimism about the company's future prospects.
For investors seeking a deeper dive into Wolverine World Wide's financials and market performance, InvestingPro offers additional insights. Currently, there are 9 more InvestingPro Tips available for WWW, which can be accessed at Investing.com/pro/WWW. To enhance your investment research, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. These tips can provide a more comprehensive understanding of the company's potential and investment profile.
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