Wolverine World Wide (WWW) AI Stock Analysis

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Wolverine World Wide

(NYSE:WWW)

Rating:68Neutral

Price Target:

$16.50

▼(-4.51%Downside)

Wolverine World Wide is experiencing strong financial performance with improved profitability and robust cash flow generation. However, high leverage and declining revenue remain significant risks. The stock exhibits bullish technical momentum, but valuation concerns and caution from the earnings call due to tariff uncertainties and guidance withdrawal temper the outlook.

Positive Factors

Brand Performance

The strength of Saucony and Merrell brands, with significant sales increases, contributes positively to the company's outlook.

Earnings

1Q25 results well exceeded guidance and consensus estimates.

Negative Factors

Guidance

FY25 revenue guidance was disappointing; The high end of revenue guidance was 1.8% below consensus estimates.

Strategy

Merrell's allocation and distribution strategy still leaves much to be desired.

Wolverine World Wide (WWW) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.40B

Dividend Yield2.31%

Average Volume (3M)1.44M

Price to Earnings (P/E)19.5

Beta (1Y)1.63

Revenue Growth-13.05%

EPS GrowthN/A

CountryUS

Employees3,100

SectorConsumer Cyclical

Sector Strength58

IndustryApparel - Footwear & Accessories

Share Statistics

EPS (TTM)0.18

Shares Outstanding81,044,050

10 Day Avg. Volume1,260,135

30 Day Avg. Volume1,444,765

Financial Highlights & Ratios

PEG Ratio0.01

Price to Book (P/B)2.57

Price to Sales (P/S)0.00

P/FCF Ratio-4.04

Enterprise Value/Market Cap1.49

Enterprise Value/Revenue0.29

Enterprise Value/Gross Profit2.67

Enterprise Value/Ebitda12.18

Forecast

1Y Price Target

$19.63

Price Target Upside13.60% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering9

Wolverine World Wide Business Overview & Revenue Model

Company DescriptionWolverine World Wide, Inc. is a global footwear and apparel company headquartered in Rockford, Michigan. The company designs, manufactures, and markets a diverse portfolio of owned and licensed brands, including Merrell, Saucony, Sperry, and Wolverine, among others. Wolverine World Wide operates in various sectors, primarily focusing on footwear, apparel, and accessories, catering to a wide range of consumer segments across casual, outdoor, work, athletic, and lifestyle categories.

How the Company Makes MoneyWolverine World Wide generates revenue primarily through the sale of its footwear, apparel, and accessories across multiple channels, including wholesale, direct-to-consumer, and licensing. The company's wholesale operations involve selling products to various retailers, department stores, and specialty stores globally. Its direct-to-consumer operations include e-commerce platforms and branded retail stores, enabling direct engagement with customers. Additionally, Wolverine World Wide earns revenue through licensing agreements, allowing other companies to produce and sell products under its brand names. Partnerships with retailers and strategic acquisitions also play a significant role in expanding its market presence and boosting its earnings.

Wolverine World Wide Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: 16.76%|

Next Earnings Date:Aug 06, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strong revenue and earnings growth driven by key brands Saucony and Merrell, along with record gross margins. However, significant challenges such as the decline in Work Group and Sweaty Betty revenues, and uncertainties related to tariffs warrant caution. The withdrawal of full-year guidance further underscores the cautious outlook despite the strong start to the year.

Q1-2025 Updates

Positive Updates

Revenue and Earnings Growth

Wolverine Worldwide reported a revenue growth of over 5% on an ongoing basis and nearly 7% on a constant currency basis in the first quarter. Earnings increased by more than 3 times compared to last year.

Record Q1 Gross Margin

Achieved record Q1 gross margin, marking the fourth time in the last five quarters the company posted record gross margins.

Saucony Brand Performance

Saucony delivered 30% year-over-year revenue growth in Q1 with strong double-digit growth in North America and more than doubling the Asia-Pacific business. Gross margin improved by nearly 400 basis points.

Merrell Brand Performance

Merrell grew revenue by 13% compared to Q1 last year, with largest contributions coming from Asia Pacific and EMEA. Gross margin improved by more than 200 basis points.

International Business Growth

Reported mid-teens year-over-year growth in international markets, with a strong outlook for the balance of the year.

Negative Updates

Work Group Revenue Decline

Work Group revenue decreased by 17% in the quarter due to timing shift and the non-repeat of significant discounting on certain styles from the prior year.

Sweaty Betty Revenue Decline

Sweaty Betty revenue declined 16% in Q1, though gross margins improved significantly by nearly 1,000 basis points.

Tariff Uncertainty and Impact

The company withdrew its full-year guidance due to significant uncertainty with the tariffs, estimating a $30 million profit impact before mitigation.

Withdrawal of Full-Year Guidance

The full-year guidance for 2025 was withdrawn due to dynamic market conditions, particularly the evolving tariff situation.

Company Guidance

During the Wolverine Worldwide First Quarter Fiscal 2025 Earnings Call, the company provided guidance for the second quarter of 2025. They expect revenue to be between $440 million to $450 million, representing a year-over-year increase of approximately 5% at the midpoint, or 4.6% on a constant currency basis. The Active Group is anticipated to grow by a high single-digit percentage, while the Work Group is expected to decline by a low single-digit percentage. The company also projects second quarter adjusted operating margins of approximately 7.2%, with adjusted diluted earnings per share in the range of $0.19 to $0.24. Wolverine Worldwide highlighted several actions to mitigate the impact of tariffs, including strategic price adjustments and efforts to reduce U.S. sourcing from China to less than 10% of their volume by year-end, with a target to push this down to near zero in 2026.

Wolverine World Wide Financial Statement Overview

Summary

Wolverine World Wide shows improving profitability with recent net income and margin improvements. However, high leverage and declining revenue pose risks. The company’s strong cash flow generation provides a positive outlook, but the balance sheet's leverage is a concern that needs monitoring.

Income Statement

Positive

The gross profit margin has remained relatively stable with a slight improvement in the TTM period at 44.2%. The net profit margin improved to 4.1% in TTM from a loss position previously, indicating better cost management. Revenue growth has been negative over the last few periods, showing a decline from 2022 levels. However, the improvement in EBIT and EBITDA margins in TTM suggests operational efficiency gains.

Balance Sheet

Neutral

The debt-to-equity ratio remains high at 2.77 in TTM, indicating significant leverage. Return on equity improved to 23.66% in TTM, driven by better net income. The equity ratio is low at 18.44%, reflecting a highly leveraged balance sheet with substantial liabilities relative to equity.

Cash Flow

Positive

Free cash flow has shown a positive trend with a growth rate of 2.39% in TTM. The operating cash flow to net income ratio is robust at 1.82, indicating strong cash generation relative to net earnings. The free cash flow to net income ratio of 1.51 further supports solid cash flow performance.

TTM	Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Breakdown
Income Statement		Total Revenue
1.77B	1.75B	2.24B	2.68B	2.41B	1.79B
	Gross Profit
784.10M	781.50M	872.50M	1.07B	1.03B	735.60M
	EBIT
100.50M	101.00M	-68.20M	133.10M	155.70M	87.20M
	EBITDA
164.40M	130.50M	-46.20M	-137.30M	207.30M	-96.60M
	Net Income Common Stockholders
73.50M	47.90M	-39.60M	-189.10M	68.60M	-138.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
106.50M	152.10M	179.00M	131.50M	161.70M	347.40M
	Total Assets
1.68B	1.67B	2.06B	2.49B	2.59B	2.14B
	Total Debt
860.10M	797.70M	1.09B	1.35B	1.12B	886.80M
	Net Debt
753.60M	645.60M	908.90M	1.22B	961.60M	539.40M
	Total Liabilities
1.36B	1.35B	1.76B	2.15B	1.94B	1.56B
	Stockholders Equity
310.60M	307.30M	278.60M	339.00M	644.40M	573.00M
Cash Flow		Free Cash Flow
110.80M	159.90M	107.20M	-215.40M	69.20M	298.80M
	Operating Cash Flow
133.50M	180.10M	121.80M	-178.90M	86.80M	309.10M
	Investing Cash Flow
-6.50M	86.80M	171.60M	54.60M	-437.30M	6.10M
	Financing Cash Flow
-185.70M	-299.20M	-246.30M	107.10M	169.30M	-154.00M

Wolverine World Wide Technical Analysis

Technical Analysis Sentiment

Positive

Last Price17.28

Price Trends

50DMA

14.76

Positive

100DMA

15.83

Positive

200DMA

17.36

Negative

Market Momentum

MACD

0.80

Positive

RSI

53.93

Neutral

STOCH

59.85

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WWW, the sentiment is Positive. The current price of 17.28 is below the 20-day moving average (MA) of 17.34, above the 50-day MA of 14.76, and below the 200-day MA of 17.36, indicating a neutral trend. The MACD of 0.80 indicates Positive momentum. The RSI at 53.93 is Neutral, neither overbought nor oversold. The STOCH value of 59.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WWW.

Wolverine World Wide Risk Analysis

Wolverine World Wide disclosed 34 risk factors in its most recent earnings report. Wolverine World Wide reported the most risks in the "Legal & Regulatory" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Wolverine World Wide Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHOO	76 Outperform	$1.67B	9.92	19.51%	3.65%	10.17%	-4.71%
RCKY	74 Outperform	$160.71M	11.73	5.97%	2.88%	-2.01%	2.08%
WEYS	72 Outperform	$283.34M	9.75	11.76%	3.65%	-5.46%	-1.09%
CROX	71 Outperform	$5.47B	5.98	53.70%	―	2.09%	26.18%
WWW	68 Neutral	$1.40B	19.49	25.29%	2.31%	-13.05%	―
CAL	64 Neutral	$416.04M	5.14	13.67%	2.27%	-4.84%	-49.08%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%

* Consumer Cyclical Sector Average

Performance Comparison

WWW

Wolverine World Wide

17.28

4.84

38.91%

CROX

Crocs

97.49

-62.19

-38.95%

RCKY

Rocky Brands

21.54

-15.40

-41.69%

SHOO

Steven Madden

23.02

-19.57

-45.95%

WEYS

Weyco Group

29.58

1.83

6.59%

CAL

Caleres

12.31

-21.16

-63.22%

Wolverine World Wide Corporate Events

Executive/Board ChangesShareholder Meetings

Wolverine World Wide Shareholders Meeting Results Announced

Neutral

May 7, 2025

On May 1, 2025, Wolverine World Wide held its Annual Meeting of Shareholders where four proposals were voted on. The shareholders elected two directors for terms expiring in 2028, approved executive compensation, ratified Ernst & Young LLP as the independent auditor for fiscal year 2025, and rejected a proposal on greenhouse gas emissions disclosures and targets.

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.