Wolverine World Wide (WW4) AI Stock Analysis

Wolverine World Wide

(Frankfurt:WW4)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Cash generationSustained positive trailing‑twelve‑month free cash flow and solid cash conversion provide durable financial flexibility. This enables the company to fund marketing, e‑commerce and AI investments, sustain capex (~$20M guidance) and accelerate debt repayment without relying on volatile equity markets.

Negative Factors

Elevated leverageA debt‑to‑equity ratio near 1.9 keeps capital structure relatively leveraged for a cyclical apparel/footwear business. Higher leverage limits flexibility to absorb demand shocks, constrains M&A or reinvestment, and increases sensitivity to rising interest costs (interest/other expense guidance ~ $23M).

Wolverine World Wide (WW4) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 1.71B
Dividend Yield: 1.97%
Average Volume (3M): ―
Price to Earnings (P/E): 16.0
Beta (1Y): 1.20
Revenue Growth: -0.05%
EPS Growth: 17.10%
Country: Germany
Employees: 3,050
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Apparel - Footwear & Accessories

Wolverine World Wide Business Overview & Revenue Model

Company Description

Wolverine World Wide, Inc. is a multinational enterprise specializing in the design, manufacturing, sourcing, marketing, licensing, and distribution of footwear, apparel, and accessories. Its operations span across the United States, Europe, the Midd...

Wolverine World Wide Earnings Call Summary

Earnings Call Date:Aug 12, 2026(Q2-2026)|% Change Since:18.28%|Next Earnings Date:Nov 11, 2026

Earnings Call SentimentPositive

The call was largely positive: results beat expectations with revenue and adjusted EPS upside, operating margin expansion, stronger balance sheet and upgraded full-year guidance. Key brands Merrell and Saucony drove broad-based momentum and Saucony’s outlook was raised materially. However, notable headwinds remain including tariff and freight pressure on gross margins, a muted DTC channel in places (partly by choice), a Sweaty Betty U.S. reset, and uneven performance across the Work Group. Management conveyed confidence in underlying brand health, inventory position, and the ability to support the raised outlook while acknowledging near-term volatility.

Positive Updates

Revenue Beat and Growth

Second quarter revenue of $506 million exceeded the high end of outlook; reported revenue growth +7% year-over-year and +6% on a constant currency basis. Company has delivered 7 consecutive quarters of year-over-year growth.

Negative Updates

Tariff and Freight Headwinds Pressure Gross Margin

Consolidated gross margin was 46.5%, down 70 basis points year-over-year. Gross margin was pressured by an approximate 310 basis point unmitigated tariff headwind and a modest impact from elevated oil prices on freight costs; management estimates the unmitigated tariff impact for the year at roughly $50 million (reduced by ~$2M relative to prior assumption) and continues to pursue a potential $36M refund.

Company Guidance

Management raised full‑year FY26 guidance to $1.98–$2.00B in revenue (midpoint ≈ +6.2% reported; ≈ +6.1% constant‑currency ex‑53rd week), with Active Group now expected to grow high single‑digits and Work Group roughly flat; brand guidance: Saucony raised to mid‑teens, Merrell mid‑single‑digits, Sweaty Betty down low‑single‑digits, Wolverine ≈ flat. Profitability targets were increased to ~46.9% gross margin (prior 46.4%) and ~9.9% adjusted operating margin (prior 9.5%), raising adjusted diluted EPS to $1.55–$1.65 (from $1.43–$1.58); operating free cash flow was lifted to $115–$130M (from $105–$120M), capex ~ $20M, interest & other ≈ $23M, and an effective tax rate ≈ 18%. Q3 guidance: revenue $495–$500M (~+5.8% reported; +6.5% constant‑currency), gross margin ≈ 47.4% (down 10 bps YoY), adjusted operating margin ≈ 10.4% and adjusted EPS $0.42–$0.45 (vs $0.36 LY). Assumptions include existing tariff rates through 2026, an unchanged FX benefit of ~$14M, and net debt of $443M (down $125M YoY).

Wolverine World Wide Risk Analysis

Wolverine World Wide disclosed 35 risk factors in its most recent earnings report. Wolverine World Wide reported the most risks in the "Macro & Political" category.

Macro & Political - Risks related to catastrophic events or geopolitical conditions that may disrupt the company’s business

Latest Risks Added

0 New Risks

Wolverine World Wide Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:WW4 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DECK	78Outperform	$10.94B	10.85	43.56%	―	6.30%	11.78%
CROX	76Outperform	$6.88B	11.14	48.76%	―	0.70%	329.45%
RCKY	75Outperform	$369.13M	10.73	13.20%	1.32%	10.84%	66.78%
BIRK	66Neutral	$5.95B	16.21	12.12%	―	19.55%	19.15%
SHOO	64Neutral	$3.18B	21.53	16.05%	1.93%	18.33%	56.39%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

* Consumer Cyclical Sector Average

Performance Comparison

DE:WW4 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:WW4	Wolverine World Wide	18.00	-0.75	-3.98%
CROX	Crocs	150.52	69.36	85.46%
DECK	Deckers Outdoor	81.99	0.87	1.07%
RCKY	Rocky Brands	49.27	21.23	75.73%
SHOO	Steven Madden	43.50	11.38	35.41%
BIRK	Birkenstock Holding plc	33.43	-5.93	-15.07%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Wolverine World Wide AI Stock Analysis