Wolverine World Wide updates transformation plan
Under the previously-announced Store Restructuring Plan, the company has closed 180 stores since the beginning of 2017 including 76 closures during the second quarter of fiscal 2017. The company expects an additional 33 store closings before the end of fiscal 2017, leaving a remaining retail store fleet of approximately 80 stores. The company incurred approximately $5.3 million of operating losses in the second quarter for stores closed, and these losses will not reoccur next year. The losses include $3.0 million of inventory mark-downs related to accelerated store closures. These store closures allowed the company to liquidate inventory totaling approximately $8.4 million during the quarter. Effective July 2, 2017, subsequent to end of the quarter, the company entered into an agreement to license the Stride Rite brand to Vida Shoes International, a leader in the children's footwear and fashion industry, currently marketing children's shoes under Carter's, OshKosh, Hanna Andersson and other brands. Effective July 31, 2017, subsequent to end of the quarter, the company entered into an agreement to sell the intellectual property and certain other assets related to the Sebago brand for $14.3 million. The agreement permits the company to sell-off its remaining inventory through the end of fiscal 2017.