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]

Core Insights - Chaco has launched the CushZ Sandal, emphasizing lightweight comfort, sustainability, and performance for casual use [1][2][4] Product Features - The CushZ Sandal is designed for casual occasions, weighing 50% less than the Z/1 Classic, and features an ultra-comfortable footbed and padded mesh collar [2][4] - The sandal is priced at $80 and is certified by the American Podiatric Medical Association [3] - Key benefits include a featherlight build for ease of movement, cushioned comfort for all-day wear, and a padded mesh collar for instant relief [4] Sustainability and Materials - The CushZ Sandal is made with REPREVE® webbing, crafted from 100% recycled materials, promoting eco-conscious choices for consumers [4] - Chaco's commitment to sustainability is further demonstrated by its repairable sandals, keeping over 20,000 sandals out of landfills annually [6] Brand Mission and Consumer Trends - Chaco aims to create adaptable and durable footwear, aligning with evolving consumer preferences for health-conscious and ergonomic designs [4] - The brand's focus is on providing proper support and cushioning to promote foot health and overall well-being [4]

Core Viewpoint - Wolverine World Wide reported quarterly earnings of $0.29 per share, exceeding the Zacks Consensus Estimate of $0.21 per share, and showing significant growth from $0.07 per share a year ago, indicating a strong performance in the footwear sector [1][2]. Financial Performance - The company achieved revenues of $440.2 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 4.42%, although this represents a decline from $527.7 million in the same quarter last year [2]. - Over the last four quarters, Wolverine has exceeded consensus EPS estimates two times and topped revenue estimates four times [2]. Stock Performance - Wolverine shares have increased approximately 80.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 24.3% [3]. - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $490.34 million, and for the current fiscal year, it is $0.85 on revenues of $1.73 billion [7]. - The trend of estimate revisions for Wolverine is mixed, which may change following the recent earnings report [6]. Industry Context - The Shoes and Retail Apparel industry, to which Wolverine belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, suggesting potential challenges ahead [8].

Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks in various market conditions, focusing on companies believed to be undervalued based on fundamental analysis [2][3]. Company Analysis: Wolverine World Wide (WWW) - Wolverine World Wide holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4]. - The stock is currently trading at a P/E ratio of 12.83, significantly lower than the industry average of 25.05, suggesting it may be undervalued [4]. - Over the past year, WWW's Forward P/E has fluctuated between a high of 52.92 and a low of 5.69, with a median of 11.78, further indicating volatility in valuation [4]. - The company has a P/B ratio of 4.61, which is favorable compared to the industry average of 7.18, showing a solid market value relative to its book value [5]. - WWW's P/B ratio has ranged from a high of 5.33 to a low of 1.67 over the past year, with a median of 3.35, reflecting its valuation dynamics [5]. - The P/S ratio for WWW is 0.66, lower than the industry average of 0.95, reinforcing the notion of undervaluation as sales figures are less susceptible to manipulation [6]. - Overall, the combination of these metrics suggests that WWW is likely undervalued, supported by a strong earnings outlook, making it an attractive value stock [7].

We expect Wolverine World Wide, Inc. (WWW) to register top-line decline and bottom-line growth when it reports third-quarter 2024 earnings on Nov. 7, before market open. Investors are paying close attention for insights into the company’s performance and strategic direction.The Zacks Consensus Estimate for revenues is pegged at $421.1 million, indicating a decrease of 20.2% from the prior-year figure.The consensus mark for the bottom line has remained unchanged in the past 30 days at 21 cents, which indicat ...

Core Insights - Merrell and Jeep have launched a second footwear collaboration, focusing on hiking innovation and off-road exploration technologies [2][3] - The new collection features the Moab Speed 2 hiking shoes, designed to appeal to outdoor enthusiasts and early adopters [2][3] Product Details - The Merrell x Jeep Moab Speed 2 shoes will be available on November 12, priced at US $180 and CA $190, in four colorways inspired by Jeep paint colors [3] - Key features include a metallic upper inspired by Jeep vehicles, radiator grill-like mesh, seatbelt-inspired webbing, and electric blue trim [3] - The Moab Speed 2 incorporates FloatPro™ Foam for lightweight comfort, Vibram lugs for traction, and recyclable materials for sustainability [3] Marketing and Promotion - The collaboration aims to engage consumers and reach a broader audience, leveraging the bold colors and technologies of the Jeep brand [4] - A promotional road trip from Michigan to Nevada will showcase the Jeep 4xe and Moab Speed 2, with content creators documenting the journey [4] Retail Availability - The collection will be available at key retailers, including Zappos in the U.S. and Sports Experts in Canada [5] Company Background - Merrell is a leader in outdoor active footwear, committed to sustainability and inclusivity, and was named Footwear News' 2022 Brand of the Year [6] - Jeep has over 80 years of heritage, focusing on capability and versatility, with plans to electrify its entire vehicle range by 2025 [7]