Wolverine World Wide Inc. (WWW) saw its stock price plummet 12.95% in pre-market trading on Wednesday, following the release of its fourth-quarter and full-year 2024 financial results and a disappointing outlook for 2025.

For the quarter ended December 28, 2024, the footwear company reported:

• Adjusted earnings per share of $0.42, in line with analysts' expectations.
• Revenue of $494.7 million, missing the consensus estimate of $485.7 million and declining 6.1% year-over-year.

The mixed results were impacted by several factors, including divestments of non-core businesses like Sperry and Wolverine Leathers, as well as challenges in the Active Group segment, which saw a 2.8% revenue decline. However, the Work Group segment experienced a 20.6% revenue increase, driven by strong demand for work boots and apparel.

On a positive note, Wolverine World Wide's gross margin improved significantly to 44% from 36.6% a year earlier, thanks to lower supply chain costs, product costs, and reduced sales of end-of-life inventory. The company also inflected to growth in the fourth quarter, exceeding its expectations for revenue and earnings.

However, the company's outlook for fiscal 2025 disappointed investors. Wolverine World Wide projected revenue of $1.80 billion to $1.83 billion and adjusted earnings per share of $1.05 to $1.20, falling short of analysts' expectations of $1.86 billion in revenue and $1.34 in adjusted EPS. The weaker-than-expected guidance reflects ongoing challenges in the industry and the impact of foreign currency headwinds.