Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Wolverine World Wide (WWW) , which belongs to the Zacks Shoes and Retail Apparel industry, could be a great candidate to consider.When looking at the last two reports, this footwear maker has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 44.05%, on average, in the last two quarters.For the most recent qu ...

Wolverine World Wide, Inc. (WWW) has demonstrated strong upward momentum, trading above its 50 and 200-day simple moving averages (SMAs). SMA is a key indicator of price stability and long-term bullish trends. The company ended Friday’s trading session at $22.79, above its 50 and 200-day SMAs of $22.41 and $15.65, respectively, highlighting a continued uptrend. This technical strength, combined with consistent momentum, indicates positive market sentiment and investor confidence in Wolverine’s financial sta ...

Core Insights - Merrell has appointed Noreen Naroo-Pucci as Chief Product Officer to enhance product vision, strategy, and innovation [1][5] - The brand aims to expand into the lifestyle segment, responding to consumer demand for versatile footwear suitable for both outdoor activities and urban life [2][5] - Naroo-Pucci brings over three decades of experience in design and brand development, having previously held significant roles at Mizzen+Main, Calvin Klein, and Under Armour [4][5] Company Strategy - Merrell is focusing on modernizing its brand to attract the next generation of outdoor consumers through innovative product development [5][6] - The company is committed to merging performance, styling, and comfort in its footwear offerings, exemplified by popular products like the Moab hiking boot and Jungle Moc [8] Leadership and Vision - Naroo-Pucci emphasizes her dedication to creating innovative products that empower consumers while maintaining a focus on style and functionality [3][6] - The leadership transition is seen as a strategic move to enhance Merrell's brand identity and market presence in the outdoor footwear industry [5][6]

Company Overview - Saucony is a global performance running lifestyle brand and a division of Wolverine World Wide, Inc. (NYSE: WWW) [4] - The brand is recognized for its innovative technologies, including PWRRUN™ PB, PWRRUN+™, and SPEEDROLL™, and aims to inspire people through running culture [4] Athlete Signing - Jackie Gaughan, a competitor in the 2024 U.S. Women's Olympic Marathon Trials, has signed a professional contract with Saucony [1] - Gaughan achieved an Olympic Marathon Trials qualifying mark of 2:27:08 at the 2023 Berlin Marathon, finishing as the 2nd American and 18th overall in the women's division [1][2] - She has a personal best of 1:10:01 at the 2024 Houston Half Marathon and placed second at the 2024 Chicago Half Marathon with a time of 1:12:41 [1] Product Highlight - Gaughan will be racing in Saucony's Endorphin collection, including the Endorphin Elite, which features a slotted carbon plate for maximum energy return and PWRRUN HG™ cushioning [2] - The Endorphin Elite is available at saucony.com and select retailers globally, providing athletes with performance-enhancing technology [2]

Core Insights - Merrell has partnered with Big Brothers Big Sisters of America (BBBSA) to create a limited-edition hiking shoe, the Moab Speed 2, aimed at promoting mentorship and outdoor equity for youth [1][2][3] - The collaboration emphasizes the importance of mentorship in building confidence and inspiring young individuals to connect with nature [3][4] Partnership Details - The Moab Speed 2 features a unique design inspired by a Merrell team member who is a volunteer mentor, incorporating the colors and spirit of BBBSA [2][3] - The shoe retails for $140 and is designed for outdoor multi-sport activities, providing exceptional traction and lightweight comfort [4] Impact and Initiatives - 90% of "Littles" in the BBBSA program reported feeling healthier and happier in nature, with 79% experiencing increased self-confidence [3] - Merrell will donate $10 for each pair of shoes sold to support BBBSA, reinforcing the partnership's goal of increasing youth access to outdoor experiences [6] Campaign and Outreach - The "It Takes Little to Be Big" campaign aims to redefine mentorship and encourage volunteer participation, addressing common barriers perceived by potential mentors [5] - Merrell has previously launched initiatives like the Kids Shoe Design Contest to engage youth and promote mentorship [5]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Wolverine World Wide (WWW) - Wolverine World Wide currently holds a Momentum Style Score of B, indicating potential for strong performance based on price changes and earnings estimate revisions [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting it is expected to outperform the market [3] Performance Metrics - Over the past week, WWW shares increased by 7.39%, while the Zacks Shoes and Retail Apparel industry rose by 2.14% [6] - In the last month, WWW's price change was 50.55%, significantly outperforming the industry's 3.66% [6] - Over the past quarter, WWW shares surged by 69.74%, and over the last year, they have gained 170.36%, compared to the S&P 500's increases of 7.61% and 33.32%, respectively [7] Trading Volume - The average 20-day trading volume for WWW is 1,325,171 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, four earnings estimates for WWW have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $0.85 to $0.89 [10] - For the next fiscal year, four estimates have also moved upwards without any downward revisions [10] Conclusion - Considering the strong performance metrics and positive earnings outlook, WWW is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a promising candidate for near-term investment [11]

Core Insights - Sweaty Betty, a London-based women's activewear brand, is expanding its presence in the U.S. with new stores in Chicago and Washington, D.C. [2][3] - The Chicago store opened on November 16, 2024, and the Washington, D.C. store opened on November 18, 2024 [2][3]. - The brand is owned by Wolverine World Wide, Inc., which is known for its portfolio of footwear and apparel brands [2]. Expansion Details - The new Chicago store is located at 3530 N Southport Avenue, and the Washington, D.C. store is at 3251 M St NW [3]. - Sweaty Betty aims to connect with new communities and deepen its presence in key markets through these openings [3]. - In addition to U.S. expansion, Sweaty Betty is also opening new stores in the UK, including locations in Cardiff and Westfield London, bringing its total to 85 stores in the country [4]. Brand Mission and Product Offering - Sweaty Betty has been focused on empowering women through fitness since its inception in 1998, promoting a global community of women [5]. - The brand is recognized for its stylish and performance-oriented activewear, including popular products like the Power legging and Zero Gravity run tights [6].

Company Overview - Wolverine World Wide, Inc. designs, manufactures, sources, markets, licenses, and distributes footwear, apparel, and accessories across various regions including the United States, Europe, and Asia Pacific [2] - The company offers a diverse range of footwear and apparel styles under multiple brands such as Bates, Cat, Chaco, Harley-Davidson, Hush Puppies, Merrell, and Sperry [2] Earnings Performance - Wolverine World Wide recently reported earnings that exceeded expectations by 8 cents per share, marking the second consecutive quarterly earnings beat [3] - Following the earnings report, four analysts revised their earnings estimates upward for both the current and next year, raising the Zacks Consensus Estimate from 85 cents to 89 cents for the current year and from $1.28 to $1.35 for the next year [3] Growth Projections - The company is projected to experience significant earnings growth, with next year's forecast indicating a 51.24% increase compared to last year's earnings of 5 cents [5] - Revenue growth is also anticipated, with forecasts suggesting a 5.9% increase [5] Stock Performance - The stock has shown remarkable performance over the past year, rising from $8 at the beginning of 2024 to approximately $21 currently [6] - The 50-day moving average has provided consistent support for the stock, acting as a guide since October 2023 [6]

Financial Data and Key Metrics Changes - In Q3 2024, Wolverine World Wide reported revenue of $440 million, exceeding the outlook of approximately $420 million, driven by increased demand in the active group and favorable foreign currency [36] - Adjusted gross margin reached a record 45.3%, an increase of 380 basis points year-over-year, reflecting a healthier sales mix and supply chain cost-saving initiatives [41] - Adjusted diluted earnings per share improved from $0.20 in the first half of 2024 to $0.29 in Q3 [42] - Net debt decreased to $563 million, down approximately $100 million from the second quarter and down $370 million from the previous year [45] Business Line Data and Key Metrics Changes - Merrell revenue grew 1.4% in Q3, with growth in both direct-to-consumer (DTC) and wholesale channels [39] - Saucony experienced a 10% decline in revenue, which was a lower rate of decline than expected due to continued demand momentum, particularly in e-commerce and U.S. wholesale [39] - Sweaty Betty grew 3% in the quarter, in line with expectations, while the work group declined 11%, impacted by supply chain disruptions [39][40] Market Data and Key Metrics Changes - Merrell saw mid-teens growth in the EMA region and mid-single-digit growth in Asia-Pacific, aided by brand activations in key cities [21] - Saucony's international growth was significant in EMEA and Asia-Pacific after adjusting for last year's business model changes in China [27] - The work group faced challenges due to shipping delays, particularly from Bangladesh, which limited the ability to meet demand [40][86] Company Strategy and Development Direction - The company is focused on stabilizing and transforming its operations, including reducing debt and inventory, while rationalizing its brand portfolio [11][12] - Wolverine is enhancing its brand building model, investing in product innovation, and establishing an innovation hub in Boston [66] - The company aims to continue its growth momentum into 2025, with plans for new product launches and strategic partnerships [22][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a choppy macro environment but expressed confidence in the company's ability to manage controllable variables and drive growth [16] - The company raised its revenue and earnings guidance for the full year, expecting fiscal 2024 revenue to be in the range of $1.73 billion to $1.745 billion [46] - Management emphasized the importance of building a durable and resilient business model to navigate potential future challenges, including tariffs [97][100] Other Important Information - The company is investing in modernizing product line management tools and enhancing its integrated business planning approach [54][65] - Wolverine has appointed Susie Kuhn as President of the Active Group, expected to bring significant experience and relationships to the brands [126][127] Q&A Session Summary Question: Can you provide more details on the momentum for Merrell and Saucony heading into 2025? - Management highlighted the importance of new leadership and a thoughtful distribution strategy to capitalize on consumer trends and expand brand presence [75] Question: What are the expectations for gross and operating margin expansion? - Management expressed optimism about margin improvements, with Q4 implied guidance for operating margins approaching 10% [83] Question: How is the work group expected to perform in Q4? - Management indicated that delays in Q3 would be recovered in Q4, supported by easier year-over-year comparisons and increased demand [87] Question: Can you discuss Saucony's e-commerce growth and its split between performance and lifestyle? - Saucony experienced mid-single-digit growth in e-commerce, with both performance and lifestyle segments contributing, although growth was constrained by product availability [111] Question: What is the company's strategy regarding potential new tariffs? - Management emphasized the importance of building a resilient business model and diversifying sourcing to mitigate tariff impacts [98][100] Question: What are the expectations for Susie Kuhn's role in the company? - Susie Kuhn is expected to leverage her extensive industry experience and relationships to drive growth for the Active Group brands [126][127]

Financial Performance & Outlook - Wolverine Worldwide's 3Q24 adjusted revenue was $440 million, a 7% year-over-year decrease, or 7.4% on a constant currency basis[21] - The adjusted gross margin for 3Q24 was 45.3%, an increase of 380 basis points year-over-year[21] - Adjusted operating margin for 3Q24 was 7.7%, up 210 basis points year-over-year[21] - Adjusted EPS for 3Q24 was $0.29, a 163.6% increase year-over-year, or 154.5% on a constant currency basis[21] - The company expects FY24 revenue to be in the range of $1730 million to $1745 million, a decline of 12.8% compared to FY23[29] - Wolverine Worldwide anticipates adjusted gross margin of approximately 44.5% and adjusted operating margin of approximately 7.2% for FY24[29] Debt & Inventory Management - Net debt at the end of 3Q24 was $563 million, down $373 million from the prior year[12, 27] - Inventory at the end of 3Q24 was $286 million, a 38% decrease from the previous year for the ongoing business[12, 27] - The company expects to reduce year-end inventory by approximately $85 million compared to the end of 2023[29] Strategic Initiatives - Wolverine Worldwide is executing a turnaround strategy focused on stabilization, transformation, and inflection to growth[12] - The company has generated approximately $394 million of proceeds since January 2023 from portfolio rationalization[12] - Wolverine Worldwide is targeting annual run rate savings of approximately $215 million from profit improvement initiatives[12, 15]