The US shoe and clothing supplier Wolverine World Wide Inc. wants to get its women’s sportswear brand Sweaty Betty on track with a structural reform. The British label, for which the group paid around 410 million US dollars for its acquisition in the summer of 2021, was in the red in the past financial year. In addition, high value adjustments at the brand weighed on the balance sheet of the group of companies, which also includes the shoe labels Merrell, Saucony and Sperry.
As part of the reform, Sweaty Betty will report directly to the London-based International Group division, which is headed by Isabel Soriano and is responsible for the group’s business activities outside the United States, Wolverine World Wide announced on Wednesday. Julia Straus, the current CEO of Sweaty Betty, will leave the company in June.
The group of companies expects considerable savings from the reorganization, for example through the reduction of office space in London and job cuts in Great Britain. The aim is to “align the cost structure of Sweaty Betty with the other Wolverine brands and to enable future investments,” according to a statement.
Brendan Hoffman, the CEO of the group, explained the measures. “Placing Sweaty Betty under the leadership of Isabel Soriano and the International Group aligns perfectly with our strategy to focus resources and support on the brands with the greatest global growth opportunities,” he said in a statement. “Our regional teams have extensive experience in key international markets and are well positioned to bring their sourcing, logistics, technology and operations expertise to accelerate Sweaty Betty’s growth.”