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Wolverine World Wide (WWW)
NYSE:WWW
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Wolverine World Wide
(NYSE:WWW)58Neutral
Positive Factors
Brand Performance
Leading the way for WWW is Saucony, where the market is clean, performance and lifestyle product offerings are gaining traction and being distributed in a thoughtful manner.
Financial Stability
The company is expected to experience growth in revenue and reduce its net leverage by the end of 2025, enhancing its financial stability.
Negative Factors
Revenue Guidance
FY25 revenue guidance was disappointing; The high end of revenue guidance was 1.8% below consensus estimates.
Wolverine World Wide (WWW) vs. S&P 500 (SPY)
Market Cap
$1.14B
Dividend Yield2.79%
Average Volume (3M)1.48M
Price to Earnings (P/E)24.5
Beta (1Y)1.65
Revenue Growth-21.75%
EPS GrowthN/A
CountryUS
Employees4,100
SectorConsumer Cyclical
Sector Strength53
IndustryApparel & Luxury
Share Statistics
EPS (TTM)0.57
Shares Outstanding80,371,570
10 Day Avg. Volume2,163,837
30 Day Avg. Volume1,484,002
Financial Highlights & Ratios
PEG Ratio0.35
Price to Book (P/B)N/A
Price to Sales (P/S)0.66
Price to Cash Flow (P/CF)3.50
P/FCF Ratio3.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$22.50Price Target Upside57.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Wolverine World Wide Business Overview & Revenue Model
Company DescriptionWolverine World Wide, Inc. engages in the design, manufacture and sale of branded casual, active lifestyle, work, outdoor sport, athletic, children's and uniform footwear and apparel. It operates through the following segments: Wolverine Michigan Group and Wolverine Boston Group. The Wolverine Michigan Group consists of Merrell footwear and apparel, Cat footwear, Wolverine footwear and apparel, Chaco footwear, Hush Puppies footwear and apparel, Bates uniform footwear, Harley-Davidson footwear and Hytest safety footwear. The Wolverine Boston Group consists of Sperry footwear and apparel, Saucony footwear and apparel, Keds footwear and apparel, and the Kids footwear business, which includes the Stride Rite licensed business, as well as kids' footwear offerings from Saucony, Sperry, Keds, Merrell, Hush Puppies and Cat. The company was founded by G. A. Krause in 1883 and is headquartered in Rockford, MI.
How the Company Makes MoneyWolverine World Wide generates revenue primarily through the sale of its branded footwear, apparel, and accessories. The company's revenue streams include wholesale distribution to retailers and distributors globally, direct-to-consumer sales through its branded retail stores and e-commerce websites, and licensing agreements for certain brands. Key partnerships with retailers and distributors worldwide help expand its market reach, while its diversified brand portfolio caters to a broad consumer base. Additionally, Wolverine World Wide benefits from strategic acquisitions and brand management, enhancing its ability to capture market share and drive growth in the competitive footwear and apparel industry.
Wolverine World Wide Financial Statement Overview
Summary
Wolverine World Wide is demonstrating signs of recovery with improved profitability and cash flow in 2024. While revenue has declined, cost management and debt reduction efforts have bolstered financial stability. The company faces challenges with high leverage, but recent improvements in operational efficiency and cash flow generation provide a positive outlook.Income Statement
Wolverine World Wide has shown a significant decline in its revenue over the recent years, from $2.68 billion in 2022 to $1.75 billion in 2024. The gross profit margin for 2024 stands healthy at 44.5%, reflecting good cost management despite declining revenues. However, the net profit margin of 2.7% indicates slim profitability. The company has managed to return to positive EBIT and EBITDA in 2024, indicating operational improvements.65
Positive
Balance Sheet
The company's debt-to-equity ratio improved significantly from 3.91 in 2023 to 0.52 in 2024 due to debt reduction and increased equity. This indicates a better financial structure. However, the equity ratio remains low at 18.4%, suggesting high leverage. The return on equity (ROE) has improved to 15.6% in 2024, showing better returns for shareholders.60
Neutral
Cash Flow
Wolverine World Wide has shown strong cash flow management, with positive free cash flow growth from $107 million in 2023 to $159.9 million in 2024. The operating cash flow to net income ratio is robust at 3.76, indicating efficient cash generation relative to net income. Despite past negative trends, the recent year shows promising cash flow improvements.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.75B | 2.24B | 2.68B | 2.41B | 1.79B | Gross Profit |
| 781.50M | 872.50M | 1.07B | 1.03B | 735.60M | EBIT |
| 101.00M | -68.20M | 133.10M | 155.70M | 87.20M | EBITDA |
| 130.50M | -46.20M | -137.30M | 207.30M | -96.60M | Net Income Common Stockholders |
| 47.90M | -39.60M | -189.10M | 68.60M | -138.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 152.10M | 179.00M | 131.50M | 161.70M | 347.40M | Total Assets |
| 1.67B | 2.06B | 2.49B | 2.59B | 2.14B | Total Debt |
| 159.70M | 1.09B | 1.35B | 1.12B | 886.80M | Net Debt |
| 7.60M | 908.90M | 1.22B | 961.60M | 539.40M | Total Liabilities |
| 1.35B | 1.76B | 2.15B | 1.94B | 1.56B | Stockholders Equity |
| 307.30M | 278.60M | 339.00M | 644.40M | 573.00M |
| Cash Flow | Free Cash Flow | |||
| 159.90M | 107.20M | -215.40M | 69.20M | 298.80M | Operating Cash Flow |
| 180.10M | 121.80M | -178.90M | 86.80M | 309.10M | Investing Cash Flow |
| 86.80M | 171.60M | 54.60M | -437.30M | 6.10M | Financing Cash Flow |
| -299.20M | -246.30M | 107.10M | 169.30M | -154.00M |
Wolverine World Wide Technical Analysis
Negative
14.30
Price Trends
20.51
Negative
20.21
Negative
16.97
Negative
Market Momentum
-1.99
Positive
21.91
Positive
14.72
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WWW, the sentiment is Negative. The current price of 14.3 is below the 20-day moving average (MA) of 17.23, below the 50-day MA of 20.51, and below the 200-day MA of 16.97, indicating a bearish trend. The MACD of -1.99 indicates Positive momentum. The RSI at 21.91 is Positive, neither overbought nor oversold. The STOCH value of 14.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $20.30B | 22.09 | 39.80% | ― | 19.40% | 32.70% | |
76 Outperform | $5.66B | 6.50 | 57.76% | ― | 3.53% | 24.55% | |
73 Outperform | $8.63B | 14.29 | 15.42% | ― | 12.11% | 19.16% | |
71 Outperform | $4.61B | 21.81 | 12.01% | 1.44% | -3.35% | -6.09% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
58 Neutral | $1.14B | 24.52 | 15.57% | 2.79% | -21.75% | ― | |
58 Neutral | $8.78B | ― | -16.13% | 1.60% | -8.42% | 57.91% |
* Consumer Cyclical Sector Average
Performance Comparison
WWW
Wolverine World Wide
14.30
5.20
57.14%
COLM
Columbia Sportswear
84.36
5.12
6.46%
CROX
Crocs
103.85
-16.54
-13.74%
DECK
Deckers Outdoor
136.09
-15.91
-10.47%
SKX
Skechers USA
59.34
-1.47
-2.42%
VFC
VF
23.45
7.97
51.49%
Wolverine World Wide Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -23.65% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial recovery in Q4 and 2024, with significant improvements in gross margin and debt reduction. Strong performances from Saucony and Merrell were noted, although challenges in direct-to-consumer sales and Sweaty Betty's performance were highlighted. The company remains optimistic about 2025 with strategic investments planned to sustain growth.Highlights
Strong Fourth Quarter and Full-Year Performance
Wolverine Worldwide posted revenue of $495 million in Q4, exceeding expectations, with a 3% increase year-over-year. Full-year diluted earnings per share increased to $0.91 from $0.15 in 2023.
Gross Margin Expansion
Gross margin expanded by more than 600 basis points in Q4, achieving a new fourth quarter record. Full-year 2024 adjusted gross margin was 44.6%, a 470 basis point increase from the previous year.
Debt Reduction and Inventory Management
The company finished with its lowest debt level since Q2 2021, reducing net debt by 33% to $496 million. Inventory was down approximately 36% from the previous year.
Saucony and Merrell Brand Growth
Saucony grew 7% in Q4, with a gross margin expansion of over 1400 basis points, and Merrell posted a second consecutive quarter of growth with a 400 basis point improvement in gross margin.
2025 Outlook and Strategic Investments
For 2025, revenue is expected to grow 2.5% to 4.3%, with continued investments in brand-building, particularly for Saucony, and enhancements in product innovation and marketing.
Lowlights
Decline in Direct-to-Consumer Sales
Q4 saw a decline in direct-to-consumer business as the company focused on more full-price sales, resulting in lower promotional activity.
Sweaty Betty's Softer Performance
Sweaty Betty's top line was softer than expected, with a 6% decline in Q4 due to a challenging UK trading environment.
Overall Revenue Decline in 2024
Fiscal 2024 revenue of $1.75 billion represented a decline of 12.1% from the prior year, primarily due to inventory liquidation and business model changes in 2023.
Company Guidance
During the Wolverine Worldwide Fourth Quarter Fiscal 2024 Earnings Call, the company provided guidance for fiscal year 2025, emphasizing a return to growth and improved profitability. They expect revenue to be in the range of $1.795 billion to $1.825 billion, reflecting an increase of 2.5% to 4.3% compared to the previous year. This includes a $40 million currency headwind, with constant currency growth projected at 4.2% to 5.9%. The company anticipates an adjusted gross margin of approximately 45.5%, up 90 basis points from last year, and an adjusted operating margin of around 8.3%, improved from 7.5% in 2024. Wolverine Worldwide projects adjusted diluted earnings per share to be between $1.05 and $1.20, representing a 25% to 41% growth on a constant currency basis. Operating free cash flow is expected to range from $70 million to $80 million, with capital expenditures around $40 million. The first quarter of 2025 is expected to see revenue of $395 million, with an adjusted operating margin of approximately 4.6%.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.