S&P lowers Wolverine

S&P said it lowered its ratings for Wolverine World Wide Inc. to B from B+, its senior secured credit facilities to B+ from BB- and its senior unsecured notes to B- from B. The recovery ratings remain 2 and 5, respectively.

“Wolverine continues to underperform due to continued softness in the wholesale channel, participation in recently declining categories such as outdoor footwear, and increasing competition and weak demand for its brands. Total revenue for 2023 was down 16.5%, driven by declines across all major brands, more significantly in the Merrell and Wolverine brands.

“Merrell, the company's largest brand, which accounts for 30% of total revenue, declined 11% in 2023. Despite Merrell's leading position and share gains in the hiking business, the outdoor category has declined in the past 12 months, and we expect the category will continue to remain under pressure in 2024,” S&P said in a press release.

The said it forecasts Wolverine’s adjusted leverage will cling above 5x for the next few years.

The outlook remains negative.

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