We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Wolverine's (WWW) Q2 Revenue Outlook Upbeat on Brand Strength
Read MoreHide Full Article
Wolverine World Wide, Inc. (WWW - Free Report) has been benefiting from strength in its digital platforms and brands as well as innovative product offerings for sometime now. In latest developments, the company provided updates on key metrics for second-quarter 2021. Management highlighted that the company’s performance improved in the said quarter on progress in its largest brands and product innovation.
Wolverine further stated that it is continuously experiencing momentum and stronger-than-expected trends across roughly all its brands with Merrell, Saucony and Sperry leading the way. Also, order book has been improving since the end of the previous quarter with impressive gains in the company’s international business.
As a result, management currently anticipates second-quarter 2021 revenues to surpass the 2019 actuals. We note that Wolverine had generated revenues worth $568.6 million during the June quarter of 2019. The company also reaffirmed full-year revenue guidance of $2,240-$2,300 million, indicating growth of 25-28% from last year’s reported levels. Moreover, this view assumes no significant deterioration of market conditions with respect to the pandemic.
On its last earnings call, management had envisioned adjusted earnings per share in the band of $1.95-$2.10 for the current year. This outlook suggests meaningful growth from adjusted earnings per share of 93 cents (95 cents in constant currency) delivered in 2020.
What’s More?
Wolverine’s e-commerce channel is its consistent key sales catalyst. The company is leveraging its digital capabilities to expedite information and product flow apart from strengthening the distribution centers. Notably, its e-commerce business grew 83.6% in the first quarter of 2021, buoyed by gains from its global digital strategy. Also, the company's direct-to-consumer channels are displaying continued progress.
The company capitalized on higher digital marketing investments to boost traffic and digital content as well as focus on better merchandising to optimize conversion. Management cited that it expects to integrate and launch various innovative technologies including a Merrell mobile app in the next few months. Encouragingly, the company targets achieving $500 million in digital revenues during 2021.
Coming to its brand performance, apart from Saucony and Merrell witnessing growth across all regions in the first quarter, its work business registered significant increases, led by Wolverine and Cat footwear. Also, the company’s work boot category appears impressive. Going forward, management is committed toward product innovations and introductions across its brand portfolio.
Image Source: Zacks Investment Research
Despite a tough operating landscape, management believes that it is well positioned on the back of its business tailwinds and strategic initiatives. Incidentally, shares of this presently Zacks Rank #3 (Hold) have increased 10.2% over the past six months against the industry’s 1.4% decline.
Crocs (CROX - Free Report) , presently a Zacks #1 Ranked stock, has a long-term earnings growth rate of 15%.
Under Armour (UAA - Free Report) has a long-term earnings growth rate of 32.2% and a Zacks Rank #2 (Buy) at present.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Bigstock
Wolverine's (WWW) Q2 Revenue Outlook Upbeat on Brand Strength
Wolverine World Wide, Inc. (WWW - Free Report) has been benefiting from strength in its digital platforms and brands as well as innovative product offerings for sometime now. In latest developments, the company provided updates on key metrics for second-quarter 2021. Management highlighted that the company’s performance improved in the said quarter on progress in its largest brands and product innovation.
Wolverine further stated that it is continuously experiencing momentum and stronger-than-expected trends across roughly all its brands with Merrell, Saucony and Sperry leading the way. Also, order book has been improving since the end of the previous quarter with impressive gains in the company’s international business.
As a result, management currently anticipates second-quarter 2021 revenues to surpass the 2019 actuals. We note that Wolverine had generated revenues worth $568.6 million during the June quarter of 2019. The company also reaffirmed full-year revenue guidance of $2,240-$2,300 million, indicating growth of 25-28% from last year’s reported levels. Moreover, this view assumes no significant deterioration of market conditions with respect to the pandemic.
On its last earnings call, management had envisioned adjusted earnings per share in the band of $1.95-$2.10 for the current year. This outlook suggests meaningful growth from adjusted earnings per share of 93 cents (95 cents in constant currency) delivered in 2020.
What’s More?
Wolverine’s e-commerce channel is its consistent key sales catalyst. The company is leveraging its digital capabilities to expedite information and product flow apart from strengthening the distribution centers. Notably, its e-commerce business grew 83.6% in the first quarter of 2021, buoyed by gains from its global digital strategy. Also, the company's direct-to-consumer channels are displaying continued progress.
The company capitalized on higher digital marketing investments to boost traffic and digital content as well as focus on better merchandising to optimize conversion. Management cited that it expects to integrate and launch various innovative technologies including a Merrell mobile app in the next few months. Encouragingly, the company targets achieving $500 million in digital revenues during 2021.
Coming to its brand performance, apart from Saucony and Merrell witnessing growth across all regions in the first quarter, its work business registered significant increases, led by Wolverine and Cat footwear. Also, the company’s work boot category appears impressive. Going forward, management is committed toward product innovations and introductions across its brand portfolio.
Despite a tough operating landscape, management believes that it is well positioned on the back of its business tailwinds and strategic initiatives. Incidentally, shares of this presently Zacks Rank #3 (Hold) have increased 10.2% over the past six months against the industry’s 1.4% decline.
Keep Tabs on These Solid Picks
Rocky Brands (RCKY - Free Report) has a trailing four-quarter earnings surprise of 157%, on average, and a Zacks Rank #1 (Strong Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Crocs (CROX - Free Report) , presently a Zacks #1 Ranked stock, has a long-term earnings growth rate of 15%.
Under Armour (UAA - Free Report) has a long-term earnings growth rate of 32.2% and a Zacks Rank #2 (Buy) at present.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>