The management of Wolverine World Wide told a recent investors’ conference that it sees sourcing costs rising by low- to mid-single digits in the second half of this year and by mid- to high-single digits in 2011. Wolverine has already raised prices in the U.S. but has not yet found resistance from retailers. There are now 100 Merrell stores in operation around the world and the company sees an opportunity for them to be at least as many as its 535 Hush Puppies stores. That should be made easier through the further development of Merrell’s apparel line, which is going to be ahead of plan this year with sales of about $30 million. Noting that 92 percent of Merrell’s annual deliveries of 13 million pairs are concentrated in its 20 biggest markets, the management reiterated its belief that the brand should gain wider distribution internationally. Further acquisitions are likely over the next 12-18 months.
