Key Points Hong Kong-based Oxbow Capital Management initiated a position in Wolverine World Wide during the third quarter, buying up 1.98 million shares. The position was worth about $54.43 million at quarter-end. Wolverine World Wide is now the fund’s fifth-largest holding, reflecting a significant allocation to the consumer footwear company. These 10 stocks could mint the next wave of millionaires › On November 13, Hong Kong-based Oxbow Capital Management disclosed a new position in Wolverine ...

分组1 - Zacks Premium offers various tools for investors to enhance their stock market confidence and knowledge, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market within a 30-day timeframe, rated from A to F based on value, growth, and momentum characteristics [2][6] 分组2 - The Value Score identifies attractive and discounted stocks using financial ratios such as P/E and Price/Sales, appealing to value investors [3] - The Growth Score focuses on a company's future prospects by analyzing projected and historical earnings, sales, and cash flow, catering to growth investors [4] - The Momentum Score assists investors in capitalizing on price trends by evaluating recent price changes and earnings estimate revisions [5] 分组3 - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investment strategies [6] - The Zacks Rank, a proprietary stock-rating model, relies on earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.81% since 1988, significantly outperforming the S&P 500 [7][8] 分组4 - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering stocks with a 3 rank if they possess high Style Scores [9] - The direction of earnings estimate revisions is crucial when selecting stocks, as a stock with a low rank but high Style Scores may still face downward price pressure [10] 分组5 - Wolverine World Wide, Inc. specializes in designing, manufacturing, and distributing a variety of footwear and apparel, recognized for brands like Merrell and Hush Puppies [11] - Currently, Wolverine World Wide holds a 3 (Hold) Zacks Rank with a VGM Score of A, and a Momentum Style Score of A, having seen a 9.1% increase in shares over the past four weeks [12] - With positive earnings estimate revisions and a strong earnings surprise average of +31.8%, Wolverine World Wide is positioned as a noteworthy investment opportunity [12][13]

Core Thesis - Wolverine World Wide, Inc. is viewed positively despite recent stock price volatility, with a focus on long-term growth potential driven by strategic investments in research and advertising [1][5]. Financial Performance - As of December 2nd, Wolverine World Wide's share price was $16.57, with trailing and forward P/E ratios of 15.91 and 10.95 respectively [1]. - The company reported strong Q3 results, achieving a non-GAAP EPS of $0.36, surpassing the consensus estimate of $0.30, and revenue of $470 million, which represents a 6.8% year-over-year increase and exceeded expectations by $7.2 million [2]. - Full-year 2025 non-GAAP EPS guidance was revised to $1.05–$1.20, indicating a Q4 EPS forecast of $0.16–$0.31, below the consensus of $0.47, which caused short-term investor panic [2]. Strategic Investments - Management plans to increase research and advertising expenditures in Q4 to support long-term growth, which may temporarily suppress EPS due to upfront expensing [3]. - The full-year 2025 revenue guidance remains stable at $1.855–$1.87 billion, suggesting the company can meet or exceed top-line targets despite quarterly fluctuations [4]. Market Positioning - The stock is considered deeply undervalued with a forward P/E of 9.66, reflecting the company's resilient brands and growth potential [4]. - Despite short-term EPS volatility, the underlying fundamentals, including revenue strength and brand positioning, indicate that Wolverine World Wide remains an attractive investment opportunity [5].

Core Insights - Wolverine World Wide, Inc. (WWW) demonstrated strong performance in Q3 2025, achieving 6.8% revenue growth and record margins, primarily driven by its flagship brands, Saucony and Merrell [1][10] Brand Performance - Saucony reported a significant 27% year-over-year revenue increase, achieving record profitability by effectively blending performance running with lifestyle appeal [2][10] - Merrell experienced a 5.1% quarterly revenue growth, focusing on performance-oriented products while redefining itself as a modern outdoor lifestyle brand [4][10] Product and Market Strategy - Saucony's signature models, including the Endorphin series and ProGrid Omni 9, are enhancing its presence in both athletic and fashion markets, supported by collaborations that resonate with younger consumers [3][10] - Merrell's product offerings, such as the Moab 3 and Agility Peak 5, are attracting diverse audiences by combining trail performance with everyday versatility [4][10] Global Expansion - Both brands are expanding their global reach through a city-focused strategy targeting key markets like Tokyo, London, and Paris, which integrates digital engagement with localized storytelling [5][10] Financial Projections - For Q4 2025, Wolverine anticipates revenues between $498 million and $513 million, indicating a 2.2% year-over-year growth at the midpoint [6][10] - Full-year revenue projections for 2025 are between $1.86 billion and $1.87 billion, suggesting a year-over-year growth of 6-6.8% [6][10] Competitive Landscape - Wolverine competes with key players like Deckers Outdoor Corporation, Tapestry, Inc., and Urban Outfitters Inc., all of which are also focusing on brand innovation and market expansion [8][10]

Core Insights - Tom Kennedy, a longtime executive at Wolverine Worldwide, has retired after 10 years with the company, having served in various leadership roles since 2015 [1][2] - Justin Cupps has been appointed as the new president of Wolverine Worldwide's Work Group, overseeing several brands including Wolverine, Bates, and Merrell Work [3][4] - Wolverine Worldwide reported a 6.8% increase in total revenue for Q3 2025, reaching $470.3 million, compared to $440.2 million in the same period last year [6] Leadership Changes - Tom Kennedy retired in October 2023, having most recently served as president of the Work Group and held key roles including global president of Sperry [1][2] - Justin Cupps brings nearly 30 years of experience from brands like Under Armour and Adidas, and previously led a $1.25 billion portfolio at EssilorLuxottica [5][6] - CEO Chris Hufnagel expressed confidence in Cupps' ability to drive growth and innovation within the Work Group [4][10] Financial Performance - Wolverine Worldwide's Q3 2025 net earnings were $25.1 million, an increase from $23.2 million in the same period last year, with diluted earnings per share rising to 30 cents from 28 cents [7] - Saucony and Merrell brands showed significant growth, with Saucony's net sales increasing by 27.0% to $133.1 million and Merrell's by 5.1% to $167.3 million [7] - The Wolverine brand experienced an 8.2% decline in net sales to $45.3 million, and Sweaty Betty saw a 3.9% decline to $44.5 million [8] Strategic Outlook - CEO Hufnagel acknowledged the challenges faced by the Wolverine brand and the Work Group, indicating that progress has not met expectations [8][9] - Cupps' appointment is seen as a strategic move to accelerate necessary changes and strengthen the product pipeline, focusing on market segmentation and premium offerings [10][11] - The company aims to return to steady growth by addressing identified challenges and leveraging a proven playbook [9][10]

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 Worldwide's turnaround efforts are yielding positive results, with total revenue in Q3 2025 reaching $470.3 million, a 6.8% increase from $440.2 million in the same period last year [1] - The company exceeded its previous guidance for Q3, which projected net sales between $450 million and $460 million, and diluted earnings per share in the range of 24 to 28 cents [3] Financial Performance - Net earnings for Q3 were $25.1 million, up from $23.2 million the previous year, with diluted earnings per share increasing to 30 cents from 28 cents [2] - Ongoing total revenue, excluding the sold Sperry business, was also $470.3 million, reflecting a 6.9% increase from $440.1 million in the prior year [1] Brand Performance - Saucony and Merrell brands showed significant growth, with Saucony's net sales increasing by 27.0% to $133.1 million and Merrell's net sales rising by 5.1% to $167.3 million [4] - The Wolverine brand experienced an 8.2% decline in net sales to $45.3 million, while Sweaty Betty saw a 3.9% decrease to $44.5 million [5] Revenue Breakdown - International revenue increased by 13.5% to $242.7 million compared to the prior year, while direct-to-consumer revenue decreased by 5.0% to $106.8 million [6] - The company anticipates full fiscal year revenue to be between $1.855 billion and $1.870 billion, indicating growth of approximately 6.0% to 6.8% compared to the 2024 ongoing business [6] Strategic Outlook - The CEO emphasized the company's commitment to improving its operations through new strategies, talent, and processes aimed at enhancing product quality and shareholder value [7]

Core Insights - Wolverine World Wide, Inc. reported solid financial results for Q3 ended September 27, 2025, with brands Merrell, Saucony, and Sweaty Betty exceeding expectations [1] - The company achieved a record gross margin quarter, contributing to better-than-anticipated earnings per share [1] Financial Performance - The financial results indicate a strong performance driven by disciplined execution across key brands [1] - The earnings per share surpassed market expectations, reflecting effective management and operational efficiency [1]

Group 1 - UBS upgraded the rating of Xtep International (01368) from "Neutral" to "Buy" and raised the target price from HKD 6.4 to HKD 7.6 [1] - The net profit forecast for 2025 to 2027 was increased by 1% to 9%, with expected profit contributions from Saucony and Merrell rising from 5% in 2024 to 16% in 2027 [1] - Anta Sports (02020) is also viewed positively, with profit contributions from vertical brands expected to increase from 9% in 2024 to 31% in 2027, maintaining a "Buy" rating and a target price of HKD 127 [1] Group 2 - Chinese sportswear stocks have seen an average decline of approximately 20% since August, reflecting market concerns over weak third-quarter sales and a growing consumer preference for specialized sports segments and vertical brands [1] - The estimated compound annual growth rate for the outdoor products market from 2025 to 2027 is projected to be 16%, significantly higher than the overall sports apparel growth rate of 5% [1] - Categories such as tennis and high-end running products are expected to have strong potential [1]