Saucony Footwear
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Is International Expansion the Key to Wolverine World Wide's Next Leg
ZACKS· 2025-12-31 16:31
Core Insights - Wolverine World Wide, Inc.'s international business is a key growth driver, showcasing the strength of its global brand portfolio and scalable operating model, with products sold in over 170 countries [1][9] - The company has projected total revenues between $1.86 billion and $1.87 billion for 2025, indicating a year-over-year growth of 6-6.8% [5] - The stock has gained 5.9% in the past month, contrasting with a 5.9% decline in the Zacks Shoes and Retail Apparel industry [6] International Growth - Saucony is the primary international growth engine, with a focus on key city strategies, including a flagship store in Tokyo and planned expansions in China [2][9] - In Europe, Saucony has achieved strong double-digit growth through sponsorships of events like the London 10K and plans for further expansion in Paris [3] - Merrell has also contributed to international growth, particularly in Europe, where demand for outdoor performance footwear is increasing [4][9] Financial Performance - The Zacks Consensus Estimate for Wolverine World Wide's earnings suggests a year-over-year growth of 47.3% for the current financial year and 1.5% for the next [11] - Current earnings estimates for 2025 are $1.34 per share, with projections remaining unchanged over the past 30 days [12] - The company trades at a forward price-to-sales ratio of 0.75X, below the industry average of 1.66X, indicating potential value [8]