Accessibility StatementSkip Navigation The debut reimagines Saucony's ProGrid Triumph 4 through Gunn's distinct creative vision, marking the start of an ongoing partnership Continue Reading Saucony® Continues Its Winning Streak with the Launch of Westside Gunn Collaboration First teased on social media, the debut instantly turned heads, becoming one of the most anticipated releases of the year. The Westside Gunn x Saucony ProGrid Triumph 4 fuses Saucony's heritage with Gunn's underground creative energy. Th ...

Core Insights - Saucony has renewed its partnership with elite distance runner Julia Paternain, emphasizing its commitment to nurturing global talent in the running community [1][2]. Group 1: Partnership Details - The renewed contract with Julia Paternain solidifies a multi-year commitment as she progresses in her career [1][2]. - Ted Fitzpatrick, Vice President of Product Management and Merchandising at Saucony, expressed excitement about deepening the relationship, highlighting Paternain's recent achievements and alignment with Saucony's values [2][3]. Group 2: Athlete Performance - Julia Paternain achieved a bronze medal in the women's marathon at the 2025 World Athletics Championships in Tokyo, with a time of 2:27:23, marking a significant milestone in her career [3][4]. - Paternain's rapid ascent in the marathon scene is notable, having gone from a global ranking of 288th to a world medalist in less than eight months [4]. Group 3: Future Goals and Support - The renewed partnership will focus on supporting Paternain's training and competition goals, including competing with top runners globally and engaging in community initiatives [4]. - Paternain expressed enthusiasm for the future, aiming for more challenges and growth with Saucony's backing [4]. Group 4: Company Background - Saucony is recognized as a leading global performance running brand, known for its innovative technologies and commitment to running culture [6]. - The brand aims to inspire individuals to lead better lives through running and self-expression [6].

Core Insights - Wolverine World Wide, Inc. (WWW) reported strong third-quarter 2025 results, with both revenues and earnings exceeding expectations and showing year-over-year growth [1][2][10] Financial Performance - Adjusted earnings per share were 36 cents, surpassing the Zacks Consensus Estimate of 33 cents and improving from 28 cents in the prior-year quarter [4][10] - Total revenues reached $470.3 million, reflecting a 6.8% year-over-year increase on a reported basis and a 5.5% increase on a constant-currency basis, exceeding the Zacks Consensus Estimate of $463 million [5][10] - Direct-to-consumer revenues were $106.8 million, down 4.9% year over year, while international business revenues increased by 13.5% to $242.7 million [5] Segment Performance - Active Group revenues rose 10.7% year over year to $352.8 million, surpassing the Zacks Consensus Estimate of $343.5 million [6] - Work Group revenues declined 2.9% year over year to $105.9 million, falling short of the consensus estimate of $106.7 million [6] - Revenues from the Other segment fell 6.5% year over year to $11.6 million, also below the consensus estimate of $12.4 million [6] Brand Performance - Merrell's revenues increased by 5.1% year over year to $167.3 million, while Saucony's revenues surged 27% to $133.1 million [7] - Wolverine's revenues decreased by 8.2% to $45.3 million, and Sweaty Betty's revenues fell 3.9% to $44.5 million [7] Margins and Costs - Gross profit was $223.2 million, up 12.3% year over year, with gross margin expanding by 240 basis points to 47.5% due to supply-chain cost-saving initiatives and reduced promotional activity [8][10] - Adjusted operating costs increased by 9.1% year over year to $180.2 million, with the metric as a percentage of revenues rising by 150 basis points to 9.1% [8] Future Outlook - For fiscal 2025, revenues are projected between $1.86 billion and $1.87 billion, indicating growth of 6-6.8% from 2024 ongoing business [13] - The gross margin is expected to be 47.1%, reflecting an improvement of 280 basis points over 2024, with earnings per share projected at $1.08 to $1.13 [14]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $470 million, exceeding the guidance midpoint of $455 million, representing a 7% increase year-over-year [27][28] - Adjusted earnings per share (EPS) grew 29% to $0.36 compared to $0.28 in the prior year, reflecting disciplined execution and improved profitability [31][32] - Consolidated gross margin increased to 47.5%, up 240 basis points year-over-year, driven by product cost savings and lower promotional activity [31][32] Business Line Data and Key Metrics Changes - Saucony revenue increased by 27% in Q3, driven by strong growth in both performance run and lifestyle categories [29][30] - Merrell revenue grew by 5%, supported by market share gains in the hike category and strong sell-through at key accounts [30][17] - Sweaty Betty's revenue declined by 4%, but this was better than expected as the brand executed a clear strategy to reset its business [30][20] Market Data and Key Metrics Changes - Global wholesale revenue increased by 11%, with international wholesale up mid-teens and US wholesale up mid-single digits [28] - Direct-to-consumer (DTC) revenue declined by 5%, primarily due to lower promotional activity in the US, partially offset by international growth [28][30] - The Asia-Pacific region is expected to be the fastest-growing market for Saucony, with significant expansion plans in China [15][16] Company Strategy and Development Direction - The company aims to continue scaling its two largest brands, Merrell and Saucony, which are expected to represent nearly two-thirds of total revenue in 2025 [6][9] - A focus on responsible brand management and reducing promotional activity is emphasized to enhance brand positioning and sell-through rates [40] - The company is investing in product innovation and marketing to strengthen its brand portfolio and drive long-term growth [40][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy and path forward, despite challenges in the Workgroup segment [27][35] - The company anticipates revenue growth of approximately 6% for fiscal year 2025, with adjusted EPS expected to increase by about 50% compared to 2024 [9][34] - Management acknowledged the dynamic macro environment and evolving consumer preferences, emphasizing the need for agility and responsiveness [39][40] Other Important Information - The company changed its accounting policy for inventory from LIFO to FIFO, aligning all warehouse inventory under a consistent policy [4] - The impact of tariffs is being managed effectively, with expectations to offset the majority of unmitigated impacts in 2025 [33][34] Q&A Session Summary Question: Contribution of new distribution to Saucony's growth - Management indicated that about a third of Saucony's growth in the quarter came from new distribution [44] Question: Balance between lifestyle and performance footwear - Management noted that lifestyle footwear is growing faster than performance, but both segments are gaining share [46] Question: Expectations for Saucony's door count in 2026 - Management anticipates an increase in door count for Saucony in the first half of 2026, with a focus on responsible brand management [50][58] Question: Sell-through rates and performance by gender - Management reported strong performance in women's and kids' categories, with men's also performing well [87][90] Question: Merrell's distribution evolution - Management stated that Merrell's new door expansion will not be as aggressive as Saucony's, focusing instead on evolving existing distribution [96]

Core Insights - Wolverine World Wide (WWW) reported quarterly earnings of $0.36 per share, exceeding the Zacks Consensus Estimate of $0.33 per share, and showing an increase from $0.29 per share a year ago, resulting in an earnings surprise of +9.09% [1] - The company achieved revenues of $470.3 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.51% and up from $440.2 million year-over-year [2] - Wolverine has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Earnings Outlook - The future performance of Wolverine's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on recent earnings and future expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $518.74 million, and for the current fiscal year, it is $1.33 on revenues of $1.87 billion [7] Industry Context - The Shoes and Retail Apparel industry, to which Wolverine belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, which may impact stock performance [8] - Caleres Inc. (CAL), another company in the same industry, is expected to report quarterly earnings of $0.75 per share, reflecting a year-over-year decline of -39% [9]

Financial Performance - Q3 2025 - Adjusted revenue reached $470 million, exceeding guidance of $450 million to $460 million, representing a 6.9% year-over-year increase, or 5.5% on a constant currency basis[52] - Gross margin was 47.5%, a 240 bps increase year-over-year, surpassing the approximate guidance of 47.0%[52] - Adjusted operating margin was 9.1%, a 150 bps increase year-over-year, also exceeding the approximate guidance of 8.3%[52] - Adjusted EPS was $0.36, a 28.6% increase year-over-year, or 25.0% on a constant currency basis, outperforming the guidance of $0.28 to $0.32[52] - Inventory at the end of the quarter was $293 million, a decrease of approximately 0.7% compared to the prior year[58] - Net debt at the end of the quarter was $543 million, a decrease of approximately 3.6% compared to the prior year[59] FY25 Guidance - Revenue is projected to be between $1.855 billion and $1.870 billion, representing a 6.4% increase at the midpoint compared to the 2024 ongoing business, or 5.6% on a constant currency basis[61] - Gross margin is expected to increase by 280 bps compared to last year, reaching approximately 47.1%[61] - Adjusted operating margin is expected to increase by 160 bps compared to last year, reaching approximately 8.9%[61] - Adjusted EPS is projected to be between $1.29 and $1.34, representing a 50.0% year-over-year increase at the midpoint compared to $0.88 in 2024[61]

Revenue Performance - Total revenue for Q3 2025 was $470.3 million, representing a year-over-year increase of 6.8% compared to $440.2 million in Q3 2024[5] - Active Group revenue increased by 10.7% to $352.8 million, while Work Group revenue decreased by 2.9% to $105.9 million[5] - International revenue for Q3 2025 was $242.7 million, an increase of 13.5% compared to $213.8 million in Q3 2024[5] - Revenue for Q3 2025 was $470.3 million, a 6.8% increase from $440.2 million in Q3 2024[24] - Fiscal 2025 revenue guidance is projected to be between $1,855 million and $1,870 million, with a gross margin of 47.1%[34] Profitability Metrics - Gross margin improved to 47.5%, up 240 basis points from 45.1% in the prior year, driven by supply chain cost initiatives and lower promotional activity[5] - Gross profit increased to $223.2 million in Q3 2025, with a gross margin of 47.5%, compared to $198.7 million and 45.1% in Q3 2024[1] - Operating profit rose to $39.6 million in Q3 2025, resulting in an operating margin of 8.4%, up from $34.7 million and 7.9% in Q3 2024[1] - The operating margin for Fiscal 2025 is projected to be 8.9%, up from a reported margin of 7.8%[34] Earnings Per Share - Diluted earnings per share for Q3 2025 were $0.30, a 7.1% increase from $0.28 in Q3 2024[5] - Diluted earnings per share for Q3 2025 was $0.30, an increase from $0.28 in Q3 2024[1] - Adjusted diluted earnings per share for 2025 are projected to be in the range of $1.29 to $1.34[10] - Adjusted diluted EPS for Fiscal 2025 is expected to be between $1.29 and $1.34, reflecting a $0.21 adjustment from reported EPS of $1.08 to $1.13[34] Net Earnings - Net earnings attributable to Wolverine World Wide, Inc. were $25.1 million in Q3 2025, compared to $23.2 million in Q3 2024, reflecting a 8.2% increase[1] - For the quarter ended September 27, 2025, net earnings attributable to Wolverine World Wide, Inc. were $25.1 million, with diluted EPS of $0.30[39] - Year-to-date net earnings as of September 27, 2025, were $68.5 million, reflecting an increase of $2.8 million from adjustments[39] - Net earnings for Fiscal 2025 are forecasted to be between $109 million and $113 million, with adjustments accounting for $18 million[34] Balance Sheet and Debt - Inventory at the end of Q3 2025 was $293 million, down $2 million or approximately 0.7% from the prior year[6] - Net debt decreased to $543 million, down $20 million or approximately 3.6% compared to the prior year[6] - Total current assets decreased to $716.8 million as of September 27, 2025, from $771.5 million a year earlier[19] - Total liabilities decreased to $1,315.6 million in Q3 2025, down from $1,462.5 million in Q3 2024[19] - Cash and cash equivalents at the end of Q3 2025 were $133.9 million, a decrease from $140.2 million at the end of Q3 2024[21] Accounting Changes - The company has changed its inventory accounting method from LIFO to FIFO, which will impact future financial results[7] - The company has changed its inventory costing method from LIFO to FIFO, impacting financial results for fiscal years 2025, 2024, and 2023[38] Tax and Expenses - The effective tax rate for Q3 2025 was 20.5%, compared to 17.7% in Q3 2024[1] - Operating expenses as a percentage of revenue increased to 39.0% in Q3 2025 from 37.3% in Q3 2024[1] Non-GAAP Measures - The company believes that non-GAAP measures provide useful information for evaluating operating performance and trends[34] - Constant currency presentation is used to exclude the impact of foreign currency fluctuations, providing a clearer view of operational results[34]

Core Insights - Wolverine World Wide, Inc. (WWW) reported strong brand performance in Q2 2025, with Saucony leading the portfolio, achieving a 41.5% year-over-year revenue increase and record sales, alongside a gross margin expansion of 560 basis points [1][11] - Key initiatives such as the Run As One campaign and flagship store openings in Tokyo and London enhanced consumer engagement and solidified Saucony's market position [2] - Merrell experienced a 10.7% revenue growth, marking its fourth consecutive quarter of growth, with nearly 600 basis points of gross-margin expansion driven by demand for lighter, faster trail footwear [3][11] - Sweaty Betty's revenues declined by 6% year-over-year, yet it achieved over 500 basis points of gross margin expansion through strategic campaigns and digital enhancements [4] - The Wolverine brand also improved revenues and expanded gross margin by over 400 basis points, supported by premium product launches and stronger marketing efforts [5][11] - Overall, Wolverine's Q2 performance indicates robust growth from Saucony and Merrell, with sequential improvements from Sweaty Betty and Wolverine, positioning the portfolio for sustainable growth [6][11] Competitive Landscape - Deckers Outdoor Corporation (DECK) reported strong results driven by flagship brands HOKA and UGG, with HOKA growing 19.8% year-over-year to $653.1 million and UGG increasing 18.9% to $265.1 million [8] - Tapestry, Inc. (TPR) saw an 8.3% year-over-year increase in net sales, with Coach leading the growth at 14% to $1.43 billion, while Kate Spade and Stuart Weitzman experienced declines [9] - Urban Outfitters Inc. (URBN) showcased strong performance across its brand portfolio, with all brands delivering positive comparable sales [10]

Core Insights - Wolverine World Wide, Inc. (WWW) maintained profitability momentum in Q2 2025, achieving record margins and healthy revenue growth [1] - The adjusted gross margin increased by 410 basis points year-over-year to 47.2%, driven by a favorable sales mix, reduced promotional activity, and supply-chain cost-saving initiatives [1][9] - The company expects long-term gross margins to remain between 45% and 47% due to pricing discipline and ongoing supply-chain optimization [5][9] Brand Performance - Saucony's gross margin rose by 560 basis points, benefiting from a strategic focus on premium products and higher average selling prices [2] - Merrell experienced a nearly 600 basis point increase in gross margin, driven by strong demand for modernized trail offerings [2] - Sweaty Betty improved by over 500 basis points due to its shift to premium, full-price positioning, while the Wolverine brand saw a gross margin increase of over 400 basis points [3] Operating Profitability - Adjusted operating margin increased by 290 basis points year-over-year to 9.2%, exceeding the company's 7.2% outlook [4] - The increase in operating profitability was attributed to revenue outperformance and SG&A leverage, allowing for reinvestment in marketing and talent [4] Future Expectations - For Q3, Wolverine anticipates a gross margin rise of 170 basis points to 47% and an adjusted operating margin increase of 60 basis points to 8.3% [5] - The company has taken measures to mitigate the impact of higher tariffs through sourcing diversification and selective price increases [6] Stock Performance and Valuation - WWW stock surged 76.6% over the past three months, outperforming the Zacks Shoes and Retail Apparel industry, which grew by 18.7% [7] - The company trades at a forward price-to-sales ratio of 1.27X, below the industry average of 2.01X [10] Earnings Estimates - The Zacks Consensus Estimate for WWW's current financial year's earnings implies a year-over-year growth of 46.2%, with an 18.8% growth forecast for the next financial year [11] - Earnings estimates for 2025 have been revised upward by 2 cents per share, while 2026 estimates increased by 4 cents in the past 30 days [11]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell even 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 A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting a favorable outlook compared to the market [3] Performance Metrics - Over the past week, WWW shares increased by 3.97%, significantly outperforming the Zacks Shoes and Retail Apparel industry, which rose by only 0.13% [5] - In the last month, WWW's stock price surged by 44.13%, while the industry average was 12.41% [5] - Over the past quarter, WWW shares have risen by 79.94%, and over the last year, they have increased by 132.97%, compared to the S&P 500's gains of 9.68% and 16.9%, respectively [6] Trading Volume - The average 20-day trading volume for WWW is 2,145,693 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the last two months, four earnings estimates for WWW have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $1.05 to $1.33 [9] - For the next fiscal year, four estimates have also moved higher without any downward revisions [9] Conclusion - Given the strong performance metrics and positive earnings outlook, WWW is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling investment option [11]