The buyback plan boosted shares of the apparel and footwear manufacturer by 4.4% to close at $37.86 in Tuesday's trading. The company still has $27 million worth of shares outstanding as part of a previous buyback program.
To add to its focus on paying shareholders, the company also raised its quarterly dividend from 8 cents to 10 cents a share, payable May 1.
Wolverine, which owns popular shoe brands including Sperry, Saucony, Chaco and Merrell, also restructured its capital arrangement by amending its credit agreement, which should improve the company's flexibility in future investment and capital reallocation opportunities, according to a company press release.
The buyback program positions Wolverine to focus on investing in its shareholders while the changes to its capital structure should add $1.5 billion to the company's liquidity, Wolverine CFO Mike Stornant said in the press release. Stornant anticipates the company will generate notable cash flow in the future with the possibility of adding on to the company's brand.
"We have tremendous capacity to continue to invest in organic growth initiatives, return capital to shareholders, and explore acquisition opportunities," Stornant said.
The company plans on releasing its fourth-quarter and 2018 fiscal year results at 6:30 a.m. ET on Feb. 20.
Wolverine World Wide stock has rallied 27% over the past year and has outperformed the S&P 500, which has gained just over 3% during the same time.