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1. Company Snapshot

1.a. Company Description

Wolverine World Wide, Inc.designs, manufactures, sources, markets, licenses, and distributes footwear, apparel, and accessories in the United States, Europe, the Middle East, Africa, the Asia Pacific, Canada and Latin America.The company operates through two segments, Wolverine Michigan Group and Wolverine Boston Group.


It offers casual footwear and apparel; performance outdoor and athletic footwear and apparel; kids' footwear; industrial work boots and apparel; and uniform shoes and boots.The company sources, markets, and licenses a range of footwear styles, such as shoes, boots, and sandals under the Bates, Cat, Chaco, Harley-Davidson, Hush Puppies, Hytest, Keds, Merrell, Saucony, Sperry, Sweaty Betty, Wolverine, and Stride Rite brands.It also markets Merrell and Wolverine branded apparel and accessories, as well as licenses its brands for use on non-footwear products, including the Hush Puppies apparel, eyewear, watches, socks, handbags, and plush toys; Wolverine branded eyewear and gloves; and Keds, Saucony, and Sperry branded apparel.


In addition, the company markets pigskin leather under the Wolverine Warrior Leather, Weather Tight, and All Season Weather Leathers trademarks for use in the footwear industry.Further, it operates brick and mortar retail stores, and eCommerce sites.The company sells its products to department stores, national chains, catalog and specialty retailers, independent retailers, uniform outlets, and mass merchant and government customers through retail stores, as well as through third-party licensees and distributors, and joint ventures.


As of January 1, 2022, it operated 143 retail stores, as well as 65 consumer-direct eCommerce sites.Wolverine World Wide, Inc.was founded in 1883 and is based in Rockford, Michigan.

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1.b. Last Insights on WWW

Wolverine World Wide, Inc.'s recent performance was negatively impacted by concerns over the sustainability of its brand-led momentum. Despite strong Q3 earnings and revenue beats, with earnings per share of $0.36, exceeding the Zacks Consensus Estimate of $0.33, some analysts question the stock's valuation, deeming it to trade at fair value relative to peers. The company's impressive growth, fueled by Saucony's 41.5% jump and Merrell's global trail and lifestyle momentum, may not be sufficient to drive further gains.

1.c. Company Highlights

2. Wolverine Worldwide's Q3 Earnings: A Strong Beat on Revenue and EPS

Wolverine Worldwide reported a robust third quarter, with revenue growing 7% to $470 million, surpassing the midpoint of their guidance range. Adjusted earnings per share (EPS) came in at $0.36, more than tripling the rate of top-line growth and beating analyst estimates of $0.33. The company's consolidated gross margin expanded 240 basis points to 47.5%, driven by product cost savings and more full-price sales. The strong EPS performance was a result of prudent management and disciplined execution of their strategy.

Publication Date: Nov -23

📋 Highlights
  • Revenue Growth Exceeded Guidance: Revenue reached $470M, surpassing the $455M midpoint, with 7% total growth driven by Merrell and Saucony.
  • Saucony Outperformed with 27% Growth: Saucony's revenue surged 27%, fueled by double-digit performance run sales and global market share gains.
  • Adjusted EPS Tripled Revenue Growth Rate: Adjusted EPS hit $0.36, rising over three times faster than top-line growth.
  • Merrell Maintained 5% Revenue Increase: Merrell grew 5% year-over-year, with strong performance across regions and product categories.
  • Gross Margin Expanded 240 Basis Points: Consolidated gross margin climbed to 47.5%, up from 45.1% in the prior year.

Brand Performance

The company's two largest brands, Merrell and Saucony, continued to drive growth. Saucony revenue increased 27% in the quarter, driven by broad-based growth across channels and markets, with strong double-digit growth in performance run revenue globally. Merrell revenue grew 5%, driven by increases in most regions and in both the performance and lifestyle sides of the business. Sweaty Betty outpaced expectations, with revenue down only 4% versus the prior year, as the team executed a clear strategy with increased confidence.

Outlook and Guidance

Wolverine Worldwide remains confident in their strategy and expects to deliver solid financial results for the year. The company guided for fiscal year 2025 revenue in the range of $1.855 billion to $1.87 billion, representing approximately 6.4% growth at the midpoint. Adjusted diluted EPS is expected to be in the range of $1.29 to $1.34. For the fourth quarter, revenue is expected to be in the range of $498 million to $513 million, a year-over-year increase of approximately 2.2% at the midpoint.

Valuation and Metrics

With a P/E Ratio of 14.83 and an EV/EBITDA of 11.21, the market appears to be pricing in moderate growth expectations. The company's ROE of 23.72% and ROIC of 8.95% indicate a strong ability to generate returns on equity and invested capital. Analysts estimate next year's revenue growth at 5.4%, which is slightly below this year's expected growth rate. The company's Net Debt / EBITDA ratio of 3.24x suggests a manageable debt burden.

Key Takeaways

The company's strong Q3 performance and guidance for the full year demonstrate the effectiveness of their brand-building growth model. With a focus on executing their strategy and driving revenue growth, Wolverine Worldwide is well-positioned for continued success. As the company looks to 2026, investors will be watching for updates on their progress in February.

3. NewsRoom

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Saucony® Continues Its Winning Streak with the Launch of Westside Gunn Collaboration

Dec -02

Source: prnewswire.com

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Here's How Saucony & Merrell Are Driving Wolverine's Growth in 2025

Nov -14

Source: zacks.com

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Saucony® Renews Contract with Marathon Standout Julia Paternain

Nov -12

Source: prnewswire.com

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Wolverine Puts Boots on the Ground in "Landman" for a New Partnership with Paramount+'s Blockbuster Hit

Nov -06

Source: prnewswire.com

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Wolverine Worldwide Appoints Justin Cupps as Work Group President

Nov -05

Source: businesswire.com

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Wolverine World Wide, Inc. (WWW) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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WWW Q3 Earnings & Sales Beat Estimates on Broad-Based Brand Momentum

Nov -05

Source: zacks.com

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Wolverine (WWW) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Nov -05

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.16%)

6. Segments

Active Group

Expected Growth: 5.4%

The 5.4% growth of Active Group from Wolverine World Wide, Inc. is driven by increasing demand for outdoor and athletic footwear, successful product innovations, and strategic expansion into new markets. Additionally, the segment has benefited from effective marketing campaigns and a strong e-commerce platform, leading to higher sales and revenue growth.

Work Group

Expected Growth: 4.65%

Wolverine World Wide's Work Group segment growth of 4.65% is driven by increasing demand for work boots and apparel from the construction and manufacturing industries, as well as the company's strategic acquisitions and investments in e-commerce and digital marketing, which have expanded its customer base and improved brand visibility.

Other

Expected Growth: 4.83%

Wolverine World Wide, Inc.'s 'Other' segment growth of 4.83% is driven by increasing demand for outdoor apparel and gear, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on e-commerce and digital marketing has contributed to the segment's growth.

7. Detailed Products

Merrell Footwear

Merrell offers a wide range of outdoor footwear for hiking, trail running, and casual wear

Cat Footwear

Cat Footwear provides rugged and durable work boots and shoes for construction, manufacturing, and outdoor industries

Hush Puppies Footwear

Hush Puppies offers comfortable and stylish footwear for casual, dress, and outdoor occasions

Keds Footwear

Keds provides classic, comfortable, and stylish sneakers for women, men, and kids

Sperry Footwear

Sperry offers high-quality, stylish, and comfortable footwear for dress, casual, and outdoor occasions

Stride Rite Footwear

Stride Rite provides comfortable and supportive footwear for kids, with a focus on healthy foot development

Saucony Running Shoes

Saucony offers high-performance running shoes for runners of all levels

Chaco Footwear

Chaco provides outdoor footwear for water sports, hiking, and outdoor adventures

8. Wolverine World Wide, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Wolverine World Wide, Inc. faces moderate threat from substitutes due to the presence of alternative footwear and apparel brands.

Bargaining Power Of Customers

Wolverine World Wide, Inc. has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Wolverine World Wide, Inc. relies on a network of suppliers for raw materials, but has some bargaining power due to its large scale of operations.

Threat Of New Entrants

The footwear and apparel industry has high barriers to entry, making it difficult for new entrants to compete with established players like Wolverine World Wide, Inc.

Intensity Of Rivalry

The footwear and apparel industry is highly competitive, with many established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 79.61%
Debt Cost 12.63%
Equity Weight 20.39%
Equity Cost 12.63%
WACC 12.63%
Leverage 390.49%

11. Quality Control: Wolverine World Wide, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Weyco

A-Score: 6.5/10

Value: 7.4

Growth: 5.9

Quality: 7.1

Yield: 9.0

Momentum: 3.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Flanigan's

A-Score: 5.3/10

Value: 8.1

Growth: 3.7

Quality: 5.1

Yield: 4.0

Momentum: 7.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Rocky Brands

A-Score: 5.1/10

Value: 7.8

Growth: 5.6

Quality: 5.4

Yield: 4.0

Momentum: 5.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Wolverine World Wide

A-Score: 4.6/10

Value: 4.3

Growth: 2.8

Quality: 5.1

Yield: 4.0

Momentum: 8.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Caleres

A-Score: 3.9/10

Value: 9.3

Growth: 3.7

Quality: 4.2

Yield: 4.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Vera Bradley

A-Score: 2.8/10

Value: 9.8

Growth: 0.7

Quality: 4.4

Yield: 0.0

Momentum: 0.5

Volatility: 1.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

17.27$

Current Price

17.27$

Potential

-0.00%

Expected Cash-Flows