We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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 Hits 52-Week High: Can Innovation Drive the Stock Higher?
Read MoreHide Full Article
Shares of Wolverine World Wide, Inc. (WWW - Free Report) hit a 52-week high of $15.37 on Wednesday before finally closing at $14.89. So far, WWW stock has rallied 67.5% against the Zacks Shoes and Retail Apparel industry’s sharp 21.4% decline.
Brands investments and product diversification have enabled it to outperform the broader Zacks Consumer Discretionary sector and the S&P 500 index’s growth of 0.6% and 18.1%, respectively, during the same period.
Moreover, technical indicators are supportive of Wolverine’s strong performance. The stock is trading above both its 50-day and 200-day moving averages, indicating robust upward momentum and price stability. This technical strength reflects positive market perception and confidence in its financial health and prospects.
Wolverine's significant investments in demand generation, such as marketing and advertising efforts, have helped increase brand visibility, strengthen customer loyalty and drive sales growth. The company’s focus on delivering innovative and trend-forward products has resonated well with consumers.
Saucony, one of Wolverine’s leading brands, has demonstrated the success of this strategy through product launches like the Triumph 22 and Hurricane 24, which have experienced robust consumer demand. In the second quarter of 2024, Saucony saw a 900-basis point increase in revenue contribution year over year, with e-commerce growth exceeding 20%. Brands like Merrell and Sweaty Betty have strengthened their market positions through product updates and targeted consumer engagement.
In the second quarter, the company achieved a 400-basis point increase in the adjusted gross margin, which reached 43.1%. This growth underscores Wolverine's ability to drive profitability through strategic cost management, effective inventory control and targeted pricing strategies.
The company has also made significant progress in reducing its debt, thereby strengthening its balance sheet. At the end of the second quarter, its net debt was $666 million, down $270 million from the previous year.
This aggressive debt reduction strategy enhances financial flexibility, allowing the company to make strategic investments in growth initiatives. With a target to further reduce net debt by an additional $175 million by the end of 2024, Wolverine is positioning itself for long-term financial stability.
Does WWW Stock Seem Attractive?
From a valuation perspective, Wolverine’s shares present an attractive opportunity, trading at a discount relative to industry benchmarks. With a forward 12-month price-to-sales ratio of 0.72, which is below the industry’s average of 2.13, the stock offers compelling value for investors seeking exposure to the sector. Additionally, a Value Score of B further validates its appeal.
Image Source: Zacks Investment Research
How to Play WWW?
Investors are likely to find WWW stock appealing due to its strong financial performance, strategic brand investments and impressive momentum. The company's focus on product innovation and consumer engagement has strengthened brand loyalty and sales. These, along with effective cost management and debt reduction efforts, make Wolverine a compelling investment option. The company currently sports a Zacks Rank #1 (Strong Buy).
Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Boot Barn’s fiscal 2025 earnings and sales indicates growth of 10.7% and 11.6%, respectively, from the fiscal 2024 figures. BOOT has a trailing four-quarter average earnings surprise of 7.1%.
Abercrombie is a specialty retailer of premium, high-quality casual apparel. It sports a Zacks Rank of 1 at present. ANF delivered a 16.8% earnings surprise in the last reported quarter.
The consensus estimate for Abercrombie’s fiscal 2025 earnings and sales indicates growth of 63.4% and 13.1%, respectively, from the fiscal 2024 levels. ANF has a trailing four-quarter average earnings surprise of 28%.
Steven Madden designs, sources, markets and sells fashion-forward name-brand and private-label footwear. It currently has a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Steven Madden’s 2024 earnings and sales indicates growth of 6.9% and 12.6%, respectively, from the year-ago actuals. SHOO has a trailing four-quarter average earnings surprise of 9.5%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Wolverine Hits 52-Week High: Can Innovation Drive the Stock Higher?
Shares of Wolverine World Wide, Inc. (WWW - Free Report) hit a 52-week high of $15.37 on Wednesday before finally closing at $14.89. So far, WWW stock has rallied 67.5% against the Zacks Shoes and Retail Apparel industry’s sharp 21.4% decline.
Brands investments and product diversification have enabled it to outperform the broader Zacks Consumer Discretionary sector and the S&P 500 index’s growth of 0.6% and 18.1%, respectively, during the same period.
Moreover, technical indicators are supportive of Wolverine’s strong performance. The stock is trading above both its 50-day and 200-day moving averages, indicating robust upward momentum and price stability. This technical strength reflects positive market perception and confidence in its financial health and prospects.
Image Source: Zacks Investment Research
Wolverine’s Consumer-Centric Strategy Fuels Brand Growth
Wolverine's significant investments in demand generation, such as marketing and advertising efforts, have helped increase brand visibility, strengthen customer loyalty and drive sales growth. The company’s focus on delivering innovative and trend-forward products has resonated well with consumers.
Saucony, one of Wolverine’s leading brands, has demonstrated the success of this strategy through product launches like the Triumph 22 and Hurricane 24, which have experienced robust consumer demand. In the second quarter of 2024, Saucony saw a 900-basis point increase in revenue contribution year over year, with e-commerce growth exceeding 20%. Brands like Merrell and Sweaty Betty have strengthened their market positions through product updates and targeted consumer engagement.
Image Source: Zacks Investment Research
WWW’s Cost Management, Debt Reduction Drive Financial Gains
In the second quarter, the company achieved a 400-basis point increase in the adjusted gross margin, which reached 43.1%. This growth underscores Wolverine's ability to drive profitability through strategic cost management, effective inventory control and targeted pricing strategies.
The company has also made significant progress in reducing its debt, thereby strengthening its balance sheet. At the end of the second quarter, its net debt was $666 million, down $270 million from the previous year.
This aggressive debt reduction strategy enhances financial flexibility, allowing the company to make strategic investments in growth initiatives. With a target to further reduce net debt by an additional $175 million by the end of 2024, Wolverine is positioning itself for long-term financial stability.
Does WWW Stock Seem Attractive?
From a valuation perspective, Wolverine’s shares present an attractive opportunity, trading at a discount relative to industry benchmarks. With a forward 12-month price-to-sales ratio of 0.72, which is below the industry’s average of 2.13, the stock offers compelling value for investors seeking exposure to the sector. Additionally, a Value Score of B further validates its appeal.
Image Source: Zacks Investment Research
How to Play WWW?
Investors are likely to find WWW stock appealing due to its strong financial performance, strategic brand investments and impressive momentum. The company's focus on product innovation and consumer engagement has strengthened brand loyalty and sales. These, along with effective cost management and debt reduction efforts, make Wolverine a compelling investment option. The company currently sports a Zacks Rank #1 (Strong Buy).
Other Stocks to Consider
Other top-ranked stocks are Boot Barn Holdings, Inc. (BOOT - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) and Steven Madden, Ltd. (SHOO - Free Report) .
Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Boot Barn’s fiscal 2025 earnings and sales indicates growth of 10.7% and 11.6%, respectively, from the fiscal 2024 figures. BOOT has a trailing four-quarter average earnings surprise of 7.1%.
Abercrombie is a specialty retailer of premium, high-quality casual apparel. It sports a Zacks Rank of 1 at present. ANF delivered a 16.8% earnings surprise in the last reported quarter.
The consensus estimate for Abercrombie’s fiscal 2025 earnings and sales indicates growth of 63.4% and 13.1%, respectively, from the fiscal 2024 levels. ANF has a trailing four-quarter average earnings surprise of 28%.
Steven Madden designs, sources, markets and sells fashion-forward name-brand and private-label footwear. It currently has a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Steven Madden’s 2024 earnings and sales indicates growth of 6.9% and 12.6%, respectively, from the year-ago actuals. SHOO has a trailing four-quarter average earnings surprise of 9.5%.