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Wolverine (WWW) to Post Q4 Earnings: What's in the Offing?
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Wolverine World Wide, Inc. (WWW - Free Report) is expected to report an increase in its top line from the year-ago quarter’s reported figure when it releases fourth-quarter 2022 results on Feb 22, before market open. The Zacks Consensus Estimate of $665 million for quarterly revenues suggests growth of 4.7% from the prior-year quarter’s actual.
The Zacks Consensus Estimate for the quarterly bottom line has been unchanged in the past 30 days at a loss of 14 cents. The company delivered earnings of 41 cents a share in the year-earlier quarter.
We expect revenues of $665.3 million to reflect a year-over-year rise of 4.7% and the bottom line to plunge 135.3% to a loss of 14 cents per share for the fourth quarter.
In the trailing four quarters, this Rockford, MI-based player delivered a negative earnings surprise of 1.9%, on average.
Key Factors to Note
Wolverine’s commitment to product innovation and investment in digitization to directly reach customers is likely to have favorably impacted its fourth-quarter 2022 sales performance. Management is also strengthening its direct-to-consumer (DTC) capabilities. Speed-to-market initiatives, the deployment of the digital product development tool and the expansion of e-commerce platforms are steadily contributing to its performance. All the aforesaid factors, coupled with the expansion in the international business and brand strength, are most likely to have aided WWW’s top-line performance inthe quarter under review.
On its third-quarter earnings call, management had projected fourth-quarter revenues of $650-$675 million, representing an increase of 2.3-6.2%. This indicates growth of 4% at the mid-point of the range and 9% in constant currency. This includes more than 20% growth for both the international business and the Merrell brand. The company anticipated the flagship brand’s revenues to grow in the high-single digits, partly driven by a timing shift to some of the shipments into the fourth quarter from the third, owing to logistic headwinds.
On the flip side, higher adjusted selling, general and administrative (SG&A) expenses are likely to have persisted in the to-be-reported quarter. Also, the macro challenges, including foreign currency headwinds and inventory issues, are likely to have been deterrents. These factors are anticipated to have hurt margins and the bottom line in the quarter under review.
On its last earnings call, management had forecast an adjusted gross margin of 38% for the fourth quarter, suggesting a decline from 42.4% recorded in the year-earlier quarter. The decline shows WWW’s efforts to reduce seasonal inventory, as well as increased logistics and handling costs with adverse foreign exchange rates. It projected adjusted SG&A expenses to be 37% of the fourth-quarter sales, suggesting a rise from the third-quarter level due to the higher mix of December-quarter D2C revenues, including Sweaty Betty.
Management had earlier envisioned a loss per share of 9-19 cents and an adjusted loss per share of 5-15 cents for the fourth quarter. Unfavorable foreign currency fluctuations are likely to hurt to the tune of 3 cents per share. Wolverine anticipated Sweaty Betty to be affected by macro challenges and its revenues to decline in the high-single digits in the fourth quarter.
What Our Zacks Model Says
Our proven model conclusively predicts an earnings beat for Wolverine this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Wolverine currently has a Zacks Rank of 3 and an Earnings ESP of +1.41%.
Three More Stocks With Favorable Combination
Here are three other companies, which according to our model, also have the right combination of elements to beat on earnings this reporting cycle:
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +2.97% and a Zacks Rank of 3. DLTR is likely to register top-line growth from the prior-year quarter’s reported figure when it posts fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.61 billion, suggesting 7.5% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Dollar Tree’s earnings for the fiscal fourth quarter is pegged at $2.02 per share, suggesting 0.5% growth from the year-ago quarter’s number. The consensus mark has been unchanged in the past 30 days. DLTR delivered an earnings beat of 9%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
PVH Corp (PVH - Free Report) currently has an Earnings ESP of +0.71% and a Zacks Rank of 3. PVH is likely to register a decrease in the bottom line in its fourth-quarter fiscal 2022 results from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for quarterly earnings has been unchanged at $1.64 per share over the past 30 days, suggesting a 42.3% decline from the year-ago quarter’s reported number.
PVH Corp’s top line is expected to fall from the prior-year quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.34 billion, suggesting a 3.8% decline from the figure reported in the prior-year quarter. PVH delivered an earnings beat of 22.9%, on average, in the trailing four quarters.
Dollar General (DG - Free Report) currently has an Earnings ESP of +0.93% and a Zacks Rank of 3. DG is likely to register top-line growth from the prior-year quarter’s reported figure when it posts fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $10.32 billion, suggesting 19.3% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Dollar General’s earnings for the fiscal fourth quarter is pegged at $3.24 per share, suggesting 26.1% growth from the year-ago quarter’s actual. The consensus mark has been unchanged in the past 30 days. DG delivered an earnings miss of 0.7%, on average, in the trailing four quarters.
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Wolverine (WWW) to Post Q4 Earnings: What's in the Offing?
Wolverine World Wide, Inc. (WWW - Free Report) is expected to report an increase in its top line from the year-ago quarter’s reported figure when it releases fourth-quarter 2022 results on Feb 22, before market open. The Zacks Consensus Estimate of $665 million for quarterly revenues suggests growth of 4.7% from the prior-year quarter’s actual.
The Zacks Consensus Estimate for the quarterly bottom line has been unchanged in the past 30 days at a loss of 14 cents. The company delivered earnings of 41 cents a share in the year-earlier quarter.
We expect revenues of $665.3 million to reflect a year-over-year rise of 4.7% and the bottom line to plunge 135.3% to a loss of 14 cents per share for the fourth quarter.
In the trailing four quarters, this Rockford, MI-based player delivered a negative earnings surprise of 1.9%, on average.
Key Factors to Note
Wolverine’s commitment to product innovation and investment in digitization to directly reach customers is likely to have favorably impacted its fourth-quarter 2022 sales performance. Management is also strengthening its direct-to-consumer (DTC) capabilities. Speed-to-market initiatives, the deployment of the digital product development tool and the expansion of e-commerce platforms are steadily contributing to its performance. All the aforesaid factors, coupled with the expansion in the international business and brand strength, are most likely to have aided WWW’s top-line performance inthe quarter under review.
On its third-quarter earnings call, management had projected fourth-quarter revenues of $650-$675 million, representing an increase of 2.3-6.2%. This indicates growth of 4% at the mid-point of the range and 9% in constant currency. This includes more than 20% growth for both the international business and the Merrell brand. The company anticipated the flagship brand’s revenues to grow in the high-single digits, partly driven by a timing shift to some of the shipments into the fourth quarter from the third, owing to logistic headwinds.
On the flip side, higher adjusted selling, general and administrative (SG&A) expenses are likely to have persisted in the to-be-reported quarter. Also, the macro challenges, including foreign currency headwinds and inventory issues, are likely to have been deterrents. These factors are anticipated to have hurt margins and the bottom line in the quarter under review.
On its last earnings call, management had forecast an adjusted gross margin of 38% for the fourth quarter, suggesting a decline from 42.4% recorded in the year-earlier quarter. The decline shows WWW’s efforts to reduce seasonal inventory, as well as increased logistics and handling costs with adverse foreign exchange rates. It projected adjusted SG&A expenses to be 37% of the fourth-quarter sales, suggesting a rise from the third-quarter level due to the higher mix of December-quarter D2C revenues, including Sweaty Betty.
Management had earlier envisioned a loss per share of 9-19 cents and an adjusted loss per share of 5-15 cents for the fourth quarter. Unfavorable foreign currency fluctuations are likely to hurt to the tune of 3 cents per share. Wolverine anticipated Sweaty Betty to be affected by macro challenges and its revenues to decline in the high-single digits in the fourth quarter.
What Our Zacks Model Says
Our proven model conclusively predicts an earnings beat for Wolverine this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Wolverine World Wide, Inc. Price and EPS Surprise
Wolverine World Wide, Inc. price-eps-surprise | Wolverine World Wide, Inc. Quote
Wolverine currently has a Zacks Rank of 3 and an Earnings ESP of +1.41%.
Three More Stocks With Favorable Combination
Here are three other companies, which according to our model, also have the right combination of elements to beat on earnings this reporting cycle:
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +2.97% and a Zacks Rank of 3. DLTR is likely to register top-line growth from the prior-year quarter’s reported figure when it posts fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.61 billion, suggesting 7.5% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Dollar Tree’s earnings for the fiscal fourth quarter is pegged at $2.02 per share, suggesting 0.5% growth from the year-ago quarter’s number. The consensus mark has been unchanged in the past 30 days. DLTR delivered an earnings beat of 9%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
PVH Corp (PVH - Free Report) currently has an Earnings ESP of +0.71% and a Zacks Rank of 3. PVH is likely to register a decrease in the bottom line in its fourth-quarter fiscal 2022 results from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for quarterly earnings has been unchanged at $1.64 per share over the past 30 days, suggesting a 42.3% decline from the year-ago quarter’s reported number.
PVH Corp’s top line is expected to fall from the prior-year quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.34 billion, suggesting a 3.8% decline from the figure reported in the prior-year quarter. PVH delivered an earnings beat of 22.9%, on average, in the trailing four quarters.
Dollar General (DG - Free Report) currently has an Earnings ESP of +0.93% and a Zacks Rank of 3. DG is likely to register top-line growth from the prior-year quarter’s reported figure when it posts fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $10.32 billion, suggesting 19.3% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Dollar General’s earnings for the fiscal fourth quarter is pegged at $3.24 per share, suggesting 26.1% growth from the year-ago quarter’s actual. The consensus mark has been unchanged in the past 30 days. DG delivered an earnings miss of 0.7%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.