S&P lowers Wolverine World Wide

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

“Wolverine's operating performance continues to track below our prior expectations due to tough macro conditions and continued softness in the wholesale channel. The company saw increased order cancellations and lower new orders in the past 10 to 12 weeks as its wholesale customers cautiously managed inventory, and lowered its guidance for 2023. S&P Global Ratings-adjusted leverage for the last 12 months ended July 1, 2023, was at 6.3x,” S&P said in a press release.

However, the agency said it expects leverage to slowly improve to the high-4x range in 2024.

Order trends have improved in recent weeks, but “we expect ongoing pressure with the business and continued softness in the wholesale channel for the balance of calendar 2023, which is likely to continue into the first half of 2024. We revised down our revenue and EBITDA forecast for 2023 and now expect revenue to decline mid-teens percentage in 2023, excluding Keds, which was recently sold,” S&P added.

The outlook is negative.

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