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Wolverine World Wide Inc.’s (WWW - Snapshot Report) board of directors recently announced a two-for-one stock split with respect to its common stock in the form of a stock dividend.  

Simply put, the move involves altering the number of shares outstanding and proportionally adjusting the share price. This makes the shares look more reasonably priced, though the underlying value of the company remains constant. In a 2-for-1 stock split, every shareholder with one stock is given an additional share. 

Additional shares on account of two-for-one stock split will be payable on Nov 1, 2013to stockholders of record as of Oct 1, 2013. Alongside, Wolverine announced a quarterly cash dividend of 6 cents a share on a post-split basis.

Recently, this Zacks Rank #1 (Strong Buy) company came up with strong second-quarter 2013 results, owing to the robust performance of its newly acquired brands. Wolverine’s quarterly earnings of 46 cents a share zoomed past the company’s previous guidance range of 31 cents – 35 cents and handily surpassed the Zacks Consensus Estimate of 34 cents. Moreover, the quarterly earnings jumped 12.2% year over year.

Top line surged 88% year over year to $587.8 million, while gross margin expanded 320 basis points to 41%, reflecting increased contribution from high margin consumer direct operations.

The company raised its earnings per share projection for fiscal 2013. However, its sales guidance was reiterated. Gross margin is expected to improve moderately in 2013 due to the product mix shift toward high margin consumer direct business and lower markdowns.

(Read our full coverage on this earnings report: Wolverine Posts Strong 2Q Earnings).

We remain upbeat on Wolverine’s fundamentals and believe that the strong performance of the company’s brands is likely to boost its profitability in the upcoming quarters.

Other Stocks to Consider

Besides Wolverine, the other stock in the consumer discretionary sector worth considering includes Brown Shoe Co. Inc. (BWS - Snapshot Report), which carries a Zacks Rank #1 (Strong Buy). Big 5 Sporting Goods Corp. (BGFV - Analyst Report) and Deckers Outdoor Corporation (DECK - Analyst Report), both carrying a Zacks Rank #2 (Buy) are also worth considering.

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