Sperry shoes sold by Wolverine Worldwide to Authentic Brand Group

Wolverine Worldwide The company announced Thursday that it has sold Sperry to brand management company and Reebok owner Authentic Brands Group, as the footwear retailer looks to focus on higher-performing assets.

Canadian retailer Aldo Group has been selected as the brand’s North American operating partner and will be responsible for wholesale, e-commerce and store operations, Authentic said in a news release. Aldo will also collaborate with the brand on the design, production and global distribution of the shoes. The company already works closely with Authentic to manage brands such as Roxy and Brooks Brothers.

The deal generates $130 million, which Wolverine plans to use to pay off debt.

Wolverine originally acquired Sperry, a 90-year-old brand, from Payless ShoeSource owner Collective Brands in 2012 in a $1.23 billion deal that also included Saucony, Stride Rite and Keds.

Wolverine, which operates a portfolio of apparel and footwear brands including Merrell, Hushpuppies and Sweetie Betty, announced in May that Sperry’s strategy recognized that the investments needed in the division would be better served in other parts of the business. He said he was looking for alternatives.

In a conference call with analysts after Wolverine’s earnings report in May, Wolverine’s then-CEO Brendan Hoffman said, “It’s clear that Sperry will continue to seek investment.” “That investment takes away what we think is the upside potential.” First quarter earnings.

He said the decision will allow Wolverine to expand Merrell’s lifestyle business, extend its reach beyond Saucony’s core active and lifestyle consumers, and expand its reach in Sweaty Betty’s home markets in the UK and Ireland. He said it would allow more resources to be devoted to stabilization.

Wolverine’s decision to sell Sperry comes as the retailer seeks to streamline its operations by shedding unprofitable assets and focus on growth drivers as it navigates an increasingly uncertain economy.

In November, Calvin Klein’s parent company PVHsold three underwear and underwear brands (True & Co., Warners, and Olga) to Basic Resources for $160 million. walmartMeanwhile, it offloaded Moosejaw, Bonobos, and Eloquii in a series of deals earlier this year.

Before deciding to sell Sperry, the Wolverines had a deal to sell Keds. designer brands, DSW’s parent company, for more than $90 million. Sold Hush Puppy intellectual property in China, Hong Kong and Macau for $58.8 million. The company also plans to sell its U.S. Wolverine leather business for $6 million.

The retail industry has seen consumers cut back on spending in the face of persistent inflation, high interest rates and, most recently, the resumption of student loan payments. But the footwear and apparel sector is feeling the pressure keenly.

foot locker Sales declines are reported every quarter, and even Nike has launched a $2 billion restructuring in preparation for what the company calls a “more moderate” earnings outlook.

For the three months ended September 30, Sperry’s sales were just $46.2 million, down 41.4% from the same period a year earlier, when they were $78.9 million.

While Sperry’s weak sales are a drag on Wolverine’s overall business, the recession presents an attractive entry point for Authentic, which is in the business of acquiring struggling brands at attractive valuations and devoting the resources needed to revive them. created.

Now that Sperry is part of Authentic’s portfolio, the company plans to expand Sperry’s product lineup, including rainwear, sportswear, bags and accessories, in order to increase its global market share.

“We are excited to welcome Sperry to the Authentic platform,” Jamie Salter, Authentic Chairman and CEO, said in a statement. “Sperry’s influence extends far beyond fashion and embodies a lifestyle that celebrates exploration. We look forward to taking Sperry into a new era with ALDO Group, a great partner and leader in the footwear industry.” Masu.”

In November, CNBC reported that Authentic competitor WHP Global was also interested in acquiring Sperry. At the time, GlobalData retail analyst Neil Saunders said Authentic and WHP were interested in Sperry. hanes brandsThe Champion line “makes perfect sense.”

“They have a strong business background that allows them to integrate these brands through licensing, international expansion, expanding into brick-and-mortar stores and direct-to-consumer sales,” Sanders previously said. “They’ve pretty much established an operating model where you just throw your brand in there and you see an improvement in performance.”