To Build a Family of the Most Admired Performance and Lifestyle Brands on Earth
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OUR VISION To build a family of the most admired performance and lifestyle brands on earth 9341 Courtland Drive, N.E. Rockford, Michigan 49351 616.866.5500 www.wolverineworldwide.com ANNUAL REPORT 2015 © 2016 Wolverine World Wide, Inc. OUR MISSION We empower, engage, and inspire our consumers – every step of the way. — We are a family of brands covering all ages, passions and pursuits, with a presence in virtually every corner of the world. — We are focused on our consumer and driven by innovation – all in pursuit of growth. — We are committed to further expanding the global footprint of our brands. — We are building deep connections with our consumers through our consumer-direct initiatives. — We are dedicated to delivering superior financial results for our shareholders. OUR MISSION We empower, engage, and inspire our consumers – every step of the way. — We are a family of brands covering all ages, passions and pursuits, with a presence in virtually every corner of the world. — We are focused on our consumer and driven by innovation – all in pursuit of growth. — We are committed to further expanding the global footprint of our brands. — We are building deep connections with our consumers through our consumer-direct initiatives. — We are dedicated to delivering superior financial results for our shareholders. Like the men and women it serves, Bates is also Cat® Footwear comes from a world of industry and action. Originating in the water as a river guide’s seasonal shoe, Loyal. Tough. Fearless. Harley-Davidson® Footwear Hush Puppies is the go-to footwear, accessory and apparel In 1916 Keds redefined footwear with the introduction of committed to delivering its best. A leading maker of A world where you can build anything. Where effort is Chaco has always been fit for adventure. Today, Chaco is embodies the spirit of the open road, as well as the men brand that delivers the right mix of timeless style, dependable the Champion® sneaker. The iconic design ignited a style quality boots and shoes for those in uniform, Bates’ everything. Where hard work pays off. Where others emerging from the water to offer a year-round program and women who proudly wear the name. With a growing comfort and quality. Since 1958, the brand has defined revolution, capturing the hearts of women everywhere commitment is heartfelt and hard-earned – evident see obstacles, we see opportunity. We are earthmovers. of shoes and sandals that follow the “healthy feet, healthy global presence, Harley-Davidson® Footwear markets authentic casual style for generations of consumers around from fashion icons to the girl next door. As Keds enters its in the technologies it pioneers, visible in the quality Distributed in more than 150 countries, the brand has body” mantra, inspired by a belief in the powerful connection functional riding and fashion footwear to anyone who the world. Today, Hush Puppies is the favorite shoe for all centennial year, the brand has become a lifestyle fueled by a footwear it designs, ensuring those who serve enjoy grown from a small collection of work boots into a global between outdoor adventure, travel, and community. seeks quality and values the Harley-Davidson® brand. who embrace the lighthearted spirit and modern style of this passion to put ladies first. Whether it’s her love of fashion or products that are as comfortable as they are hardwearing. lifestyle brand. www.catfootwear.com www.chacos.com www.harley-davidsonfootwear.com iconic brand – represented by our lovable basset hound! We crushing it in her career, Keds supports what she’s all about www.batesfootwear.com invented casual style, you make it your own. Hush Puppies. and who she aspires to be, championing what it means to be www.hushpuppies.com a lady today. www.keds.com Merrell believes that nothing should get in the way of Founded in 1898, Saucony’s earliest roots trace back to the Created from a sense of purpose, Sebago shares its New Sperry Top-Sider has been an American icon since 1935, At Stride Rite, we are inspired by real life. Beyond Since 1883, Wolverine is the brand that uniquely binds enjoying active outdoor adventures. Merrell® hiking boots, banks of the Saucony Creek in Kutztown, Pennsylvania. England heritage and tradition of craftsmanship with those when Paul Sperry invented the world’s first boat shoe for designing the cutest kids shoes for every day and American ingenuity and craftsmanship. We are born of trail running shoes and apparel are built on Merrell’s Today, Saucony is a leading global running lifestyle who aspire to make the journey with them. From its Classic sailors. Today, we ignite the human spirit by delivering every occasion, we are committed to developing real- work…hard work. Using the highest quality materials, outdoor heritage, quality and performance. The trail is the brand that fuses performance, innovation, and style to penny loafer to the Docksides® boat shoe, Sebago makes the promise of sea-based adventure and discovery, world solutions for moms and dads. From meltdowns innovative technology, and over 130 years of heritage; core of our design philosophy and has continued to guide produce award-winning footwear and apparel for runners timeless, handcrafted dress and casual products using providing consumers around the globe with sure-footed and messes to hugs and kisses, we strive to innovate the Wolverine® Brand provides enduring and comfortable us in the development of innovative products that inspire everywhere. www.saucony.com the finest materials, and has been doing so since 1946. confidence and style to pursue their own odysseys. around life’s little challenges. After all, we are moms too. footwear, apparel and accessories for the men and women and enable enjoyment of the outdoors. www.merrell.com www.sebago.com www.sperry.com www.striderite.com who are building the future. www.wolverine.com HIGHLIGHTS OF OUR GLOBAL FOOTPRINT 1883 1958 1994 1997 1998 2003 2009 2012 Company Hush Puppies Cat Footwear Merrell Harley-Davidson Sebago Chaco Sperry, Saucony, founded introduced license acquired acquired license acquired acquired acquired Stride Rite, and Keds acquired BELGIUM SWEDEN Partnership in market Partnership in market 54% for 15+ years for 30+ years north SWITZERLAND AMERICA Partnership in market LONDON for 15+ years EMEA Campus CYPRUS Toronto Partnership in market SOUTH KOREA for 15+ years Canada Campus Partnership in market for 15+ years Rockford, MI SAUDI ARABIA Global Headquarters Boston Partnership in market East Coast Campus JAPAN for 20+ years Partnership in market for 15+ years MEXICO PAKISTAN Partnership in market Partnership in market for 30+ years PORTUGAL TAIWAN for 15+ years COSTA RICA Partnership in market Partnership in market Partnership in market for 20+ years for 15+ years for 15+ years 19% EUROPE, MIDDLE east + AFRICA OUR VISION HONG KONG EL SALVADOR Asia Pacific Campus Partnership in market To build a family of for 30+ years the most admired 11% performance and latin 16% lifestyle brands AMERICA asia pacific on earth CHILE Partnership in market for 30+ years ARGENTINA Partnership in market for 30+ years Nearly 100 million Sold in 200+ By over 6,000 units sourced countries and territories associates per year Regional percentages of business represent units sold TO OUR SHAREHOLDERS ANNUAL REPORT 2015 Blake W. Krueger Chairman of the Board, Chief Executive Officer and President 2015 IN REVIEW In 2015, we operated against a variety of headwinds. The continued extraordinary strengthening of the U.S. dollar, slowing global demand, geopolitical instability and other macro factors combined to create a volatile retail and consumer environment. In light of these conditions, we delivered healthy earnings – long a strength of the Company – while at the same time investing in the long-term growth of our brands to capitalize on To Our Shareholders their tremendous global potential. We have always taken pride in our ability to perform in difficult economic environments, and our 2015 performance is a strong testament to the effectiveness of our olverine Worldwide has performed for diversified business model and the power of our our shareholders, global partners and earnings engine. Wdedicated team members for 133 years. Starting as a humble footwear manufacturer in Investments this past year – particularly in digital 1883, expanding into international markets in 1959 marketing initiatives and omni-channel experiences and evolving into a global lifestyle brand-builder – enabled our brands to introduce themselves to today – we have thrived with a culture of ingenuity new consumers and make deeper connections and innovation. Today, our portfolio of authentic with existing loyalists around the world. Increased brands is focused on exceeding the expectations investment in omni-channel initiatives, especially and enriching the lives of a variety of consumers in in mobile, helped to drive global 2015 ecommerce virtually every corner of the world. revenue growth of approximately 20%. Across the portfolio, we sold nearly half – around 42 million Our consumers around the world are the focal units – of our footwear and apparel outside North point of our mission: We empower, engage and America, contributing to an expanded geographic inspire our consumers – every step of the way. reach for our brand family. We are driven to understand them, to design innovative products that surpass their needs and Wolverine has a long history of returning value to share each of our brands’ compelling stories generated by our global operations to our with them. Building deep emotional connections shareholders through significant share repurchases with consumers has been the key to our success as and quarterly dividend payments, which continued a company. in 2015. We also accelerated repayment of our interest-bearing debt following the 2012 acquisition Looking ahead, we remain committed to of the Sperry®, Saucony®, Keds® and Stride Rite® translating consumer connections into value for brands, and the Company’s balance sheet remains our shareholders.