Forecasting a “very challenged” U.S. retail market in April and bracing for the second quarter to be its “most challenging” period of 2020, Wolverine Worldwide continue to modify its operational structure and business plans following a first quarter where overall revenues dipped more than 16 percent amid massive retail closures  but own e-commerce sales rose 17 percent. WWW is forecasting its combined U.S. online businesses to account for 50 to 60 percent of its total U.S. revenues in 2020.

“We’re trying to over-communicate with our retail customers to get a handle on their businesses,” Blake Krueger, Wolverine’s chairman, CEO and president told analysts earlier today as he predicted the U.S. economic recovery from the COVID-19 pandemic will gradual, with a “measure of lasting impact.”

Actions already taken by the Merrell, Sperry and Saucony parent include a reduction of future inventory receipts by approximately $300 million to focus on key styles; the postponement of $25 million in planned capital expenditure; and the extension of payment terms for key partners. The company, which has flattened its organizational structure and slashed executive salaries by 25 to 30 percent, has reduced overall operating expenses for the remainder of 2020 by $100 million.

Going forward, Wolverine has appointed three brand veterans to its Executive Leadership Team and given them multi-brand responsibility. Todd Spaletto, president of the Michigan Group, is leaving the company, and his position will not be filled. Joelle Grunberg, who was named global president of the Sperry brand in February, will now oversee Saucony, Kids and the Wolverine Kids Group. Chris Hufnagel, who assumed the global president role at Merrell in September 2019, will now add CAT Footwear, Chaco and Hush Puppies to his oversight. The Bates, Hytest and Harley-Davidson brands will report to Tom Kennedy, who was named global president of the Wolverine brand in February and will continue in that role.

“During this unprecedented period of economic disruption, we are making important changes to our leadership team and organizational structure to make the Company more nimble and better positioned to seize the opportunities that lie ahead,” Krueger said in a statement. “This new structure will accelerate our biggest growth initiatives and strengthen our focus on DTC opportunities. We will also realize meaningful cost savings under the new structure.”

In the first quarter, the onset of the pandemic interrupted fourth quarter sales momentum that many Wolverine brands generated. Year-over-year, Wolverine Michigan Group sales dipped 18 percent, with Merrell sales down low double-digits despite a 25 percent gain in e-commerce revenues. Wolverine Boston Group sales fell 11.1 percent for the period ended March 28, with Sperry sales down double digits as Saucony sales climbed double digits on strong, double-digit e-commerce growth fueled by sales of the brand’s Triumph 17 and Guide 13 running styles.