Wolverine World Wide is expanding its digital presence with the acquisition of fitness lifestyle brand Sweaty Betty. The all-cash deal, valued at about $410 million, closed last week.
The move represents Wolverine’s commitment to e-commerce, a goal of Brendan Hoffman, who is set to assume the role of CEO at Wolverine World Wide Inc. at the end of the year. It also gives Wolverine a stake in the fast-growing and competitive women’s activewear category, which is led by high-growth brands like Lululemon.
The digitally native Sweaty Betty operates more than 60 stores globally and is sold in retailers across North America. More than 80 percent of the brand’s revenue comes from direct-to-consumer channels and 70 percent comes from e-commerce.
“Sweaty Betty, a brand that we’ve been following for several years, kind of perfectly dovetailed and fit all of our strategic acquisition criteria,” said Blake Krueger, Wolverine’s chairman and CEO. “They brought some competencies to the company, they’re in apparel, they’re vertically integrated, they’re focused on digital.”
Sweaty Betty, which sells a variety of women’s activewear, swimwear, accessories and outerwear, joins a roster of Wolverine’s diverse brands that included Merrell, Saucony, Sperry, Hush Puppies and Keds. Wolverine operates its brands across about 170 countries and territories.
Wolverine also reported that company-owned e-commerce revenue more than doubled in the first half of 2021 compared to 2019 in its Q2 earnings report. Wolverine beat estimates the second quarter and raised its outlook for 2021.
Sweaty Betty CEO Julia Straus will remain at the helm of the brand, reporting to Hoffman.
