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Saucony's Strong Performance Poised to Propel WWW's Growth in 2025
ZACKS· 2025-10-01 15:51
Key Takeaways Wolverine reported broad-based Q2 growth, led by Saucony's 41.5% y/y revenue jump and record sales.Merrell marked its fourth straight quarter of growth with lighter, faster trail footwear driving demand.Sweaty Betty and Wolverine delivered margin expansion through campaigns, innovation and premium launches.Wolverine World Wide, Inc. (WWW) delivered strong brand results in the second quarter of 2025, with Saucony leading the portfolio. The brand posted a 41.5% year-over-year revenue increase, a ...
Can WWW Sustain Its Broad-Based Margin Expansion Into 2025 & Beyond?
ZACKS· 2025-09-12 18:26
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]
Wolverine Stock Gains 15% on Solid Earnings & Revenues in Q2
ZACKS· 2025-08-07 16:16
Core Insights - Wolverine World Wide, Inc. (WWW) reported strong second-quarter 2025 results, with revenues and earnings exceeding expectations, leading to a 14.8% increase in share price [1][10][17] Financial Performance - Adjusted earnings were 35 cents per share, surpassing the Zacks Consensus Estimate of 23 cents and significantly up from 15 cents in the prior-year quarter [4][10] - Total revenues reached $474.2 million, reflecting an 11.5% year-over-year increase and exceeding the consensus estimate of $450 million [5][10] - Direct-to-consumer revenues were $111.6 million, down 1.4% year over year, while international revenues increased by 15.7% to $250 million [5][11] Segment Performance - Active Group revenues rose 16.2% year over year to $355.5 million, surpassing the consensus estimate of $327.9 million [6] - Work Group revenues increased 2.4% year over year to $107.5 million, beating the consensus estimate of $104 million [6] - Revenues from the Other segment fell 21.7% year over year to $11.2 million, lagging behind the consensus estimate of $14.1 million [6] Brand Performance - Merrell's revenues increased by 10.7% to $157.9 million, while Saucony's revenues surged 41.5% to $144.3 million [7] - Wolverine's revenues declined by 7.5% to $37.1 million, and Sweaty Betty's revenues decreased by 6.1% to $41.3 million [7] Margins and Costs - Adjusted gross profit was $224 million, up 22.3% year over year, with a record gross margin of 47.2%, an increase of 410 basis points [8][10] - Adjusted operating costs rose 15.7% to $180.6 million, with the metric as a percentage of revenues increasing by 290 basis points to 9.2% [8] Future Outlook - For the third quarter, revenues are projected to be between $450 million and $460 million, indicating growth of 2.1-4.4% from the same period last year [14] - Expected gross margin for the third quarter is 47%, with adjusted earnings per share projected to be between 28-32 cents [16][17]
How is Wolverine Repositioning for Sustained Margin Strength in 2025?
ZACKS· 2025-07-10 14:45
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]
WWW Q1 Earnings Beat Estimates, Revenues Rise Y/Y, Stock Gains 10%
ZACKS· 2025-05-09 17:30
Core Insights - Wolverine World Wide, Inc. (WWW) reported strong first-quarter 2025 results, with revenues and earnings exceeding expectations and showing year-over-year growth [1][3] - The company's shares increased by 10.3% following the announcement of these results [1] Financial Performance - Adjusted earnings were 18 cents per share, surpassing the Zacks Consensus Estimate of 11 cents, and significantly up from 5 cents in the prior-year quarter [3] - Total revenues reached $412.3 million, a 4.4% increase year over year, and exceeded the Zacks Consensus Estimate of $395 million [3] - Direct-to-consumer revenues decreased by 9.4% year over year to $96.4 million, while international revenues increased by 16.4% to $207.8 million [3] Segment Performance - Active Group revenues rose by 12.7% year over year to $326.7 million, beating the consensus estimate of $298.2 million [4] - Work Group revenues fell by 17% year over year to $74.8 million, below the consensus estimate of $84.1 million [4] - Other segment revenues dropped by 28% year over year to $10.8 million, also lagging behind the consensus estimate of $13.1 million [4] Brand Performance - Merrell's revenues increased by 13.2% year over year to $150.6 million, while Saucony's revenues improved by 29.6% to $129.8 million [5] - Wolverine's revenues declined by 9.2% to $37.4 million, and Sweaty Betty's revenues fell by 15.9% to $38 million [5] Margins and Costs - Adjusted gross profit was $194.8 million, a 7.3% increase year over year, with an adjusted gross margin of 47.3%, up 80 basis points [6] - Adjusted operating costs rose by 4.9% to $170.2 million, with the metric as a percentage of revenues increasing by 100 basis points to 6% [6] Balance Sheet and Cash Flow - The company ended the quarter with cash and cash equivalents of $106.5 million and long-term debt of $565.8 million [7] - Net debt decreased by 12.1% year over year to $604 million, and inventory was down 23.6% to $271 million [7] Future Outlook - For the second quarter, the company expects revenues between $440 million and $450 million, indicating growth of 3.7-6% year over year [9] - Projected operating margin is 6.7%, with adjusted operating margin expected to be 7.2%, suggesting an increase of 90 basis points from the previous year [10] - Earnings per share are anticipated to be between 17 cents and 22 cents, with adjusted earnings per share expected between 19 cents and 24 cents [10]
Wolverine World Wide(WWW) - 2025 Q1 - Earnings Call Presentation
2025-05-08 11:23
Financial Performance - Q1 2025 - Adjusted revenue reached $412 million, a 5.5% year-over-year increase, or 6.7% on a constant currency basis[13, 42] - Adjusted gross margin improved to 47.3%, an increase of 80 basis points year-over-year[13, 42] - Adjusted EPS increased significantly by 260% year-over-year to $0.18, or 300% on a constant currency basis[13, 42] - Net debt decreased by $83 million compared to the prior year, reaching $604 million[49, 50] Full Year 2024 Performance - Adjusted revenue for FY24 was $1.75 billion[4] - Adjusted EPS for FY24 was $0.91, a 507% increase compared to FY23[4, 13] - Net debt reduced by $246 million in 2024[13] - Inventory lowered by $133 million in 2024[13] Segment Performance - Q1 2025 - Active Group revenue increased by 12.7% year-over-year to $327 million[44] - Work Group revenue decreased by 17% year-over-year to $75 million[46] Future Outlook - The company withdrew its 2025 guidance due to uncertainty around tariffs and related macro-economic conditions[52] - The company expects Q2 2025 revenue to be in the range of $440 million to $450 million, an increase of approximately 4.9% at the mid-point[53] - The company expects Q2 2025 adjusted operating margin to expand approximately 90 basis points year-over-year[53]