Core Insights - Wolverine World Wide, Inc. (WWW) started fiscal 2025 with strong momentum, achieving a record gross margin and notable operational efficiency improvements [1][7] - The company reported a 7.3% year-over-year increase in adjusted gross profit, reaching $194.8 million in the first quarter [1] Financial Performance - The adjusted gross margin for the first quarter was 47.3%, an increase of 80 basis points from the previous year, driven by a favorable sales mix, reduced promotional activities, and supply-chain cost-saving initiatives [2][9] - Operating income improved due to stronger top-line results and strict expense control, with the adjusted operating margin rising by 100 basis points to 6% [4] Brand Performance - Significant margin gains were observed in key brands, particularly Saucony and Merrell, which benefited from higher average selling prices and a healthier full-price sales mix [3] - Sweaty Betty, despite a planned revenue decline, achieved a 1,000-basis-point improvement in gross margin by shifting focus from promotions to premium pricing [3] Future Projections - Wolverine anticipates an adjusted operating margin of 7.2% in the second quarter, reflecting a 90-basis-point improvement year-over-year [5] - The company is taking proactive measures to mitigate cost pressures, including diversifying its sourcing footprint and implementing selective price increases [6] Stock Performance - Over the past three months, WWW stock has increased by 75.9%, outperforming the Zacks Shoes and Retail Apparel industry's growth of 31.4% [8] - The stock is currently trading above its 50 and 200-day simple moving averages, indicating a continued uptrend [11] Valuation Metrics - Wolverine trades at a forward price-to-sales ratio of 0.84X, which is below the industry average of 2.01X [12] - The Zacks Consensus Estimate for Wolverine's current financial-year sales and earnings per share indicates year-over-year growth of 3.6% and 15.4%, respectively [15]

Core Insights - Abercrombie & Fitch Co. (ANF) reported first-quarter fiscal 2025 results with both top and bottom lines exceeding Zacks Consensus Estimates, although year-over-year earnings per share (EPS) declined by 25.7% [1][3] Financial Performance - The company achieved net sales of $1.1 billion, reflecting an 8% year-over-year increase, surpassing the Zacks Consensus Estimate of $1.06 billion [2] - Comparable sales improved by 4%, driven by broad-based growth across regions and strong performance from the Hollister brand [2][4] - Abercrombie's EPS for the quarter was $1.59, beating the consensus estimate of $1.35 [1] Brand Performance - Hollister brand reported a 22% increase in sales to $549.4 million, while Abercrombie brand sales fell by 4% to $547.9 million [9] - Hollister's comparable sales grew by 23%, while Abercrombie's fell by 10% [9] Regional Sales - Sales in the Americas rose by 7% to $874.8 million, EMEA sales increased by 12% to $185 million, and APAC sales gained 5% to $37.5 million [8] - Comparable sales in the Americas rose by 4%, 6% in EMEA, and 2% in APAC [8] Margins and Expenses - Gross margin contracted by 440 basis points year-over-year to 62%, partially offset by a 140 basis point operating expense leverage [11] - Selling expenses increased by 11.1% year-over-year to $399.9 million, while general and administrative costs decreased by 7.7% to $174.9 million [12] Financial Health - Abercrombie ended the quarter with cash and cash equivalents of $511 million and no net long-term borrowings [13] - The company repurchased 2.6 million shares for approximately $200 million, reducing the share count by 5% [14] Outlook - For Q2 fiscal 2025, net sales are projected to rise by 3-5% from $1.13 billion in the prior year, with EPS expected between $2.10 and $2.30 [15] - For fiscal 2025, the company anticipates sales growth of 3-6%, with an operating margin of 12.5-13.5% [16][17] - Abercrombie plans to open 60 new stores, remodel 40, and close 20 [18]