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What Should Investors Expect From WWW Ahead of Q3 Earnings?
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We expect Wolverine World Wide, Inc. (WWW - Free Report) to register top-line decline and bottom-line growth when it reports third-quarter 2024 earnings on Nov. 7, before market open. Investors are paying close attention for insights into the company’s performance and strategic direction.
The Zacks Consensus Estimate for revenues is pegged at $421.1 million, indicating a decrease of 20.2% from the prior-year figure.
The consensus mark for the bottom line has remained unchanged in the past 30 days at 21 cents, which indicates a sharp increase from the year-ago reported earnings of 7 cents per share.
Wolverine has a trailing four-quarter earnings surprise of 7.5%, on average. In the last reported quarter, this Michigan-based company's earnings surpassed the Zacks Consensus Estimate by a margin of 50%.
Factors Likely to Have Shaped Wolverine’s Q3 Performance
Wolverine has acknowledged the dynamic and challenging macroeconomic environment, which continues to pose risks to consumer demand. Also, intensifying competition within the footwear industry adds another layer of complexity to its revenue outlook. Wolverine's performance is heavily reliant on the success of its key brands, such as Saucony and Merrell, which have lately shown softness in sales. Consequently, these challenges are likely to have led to a decrease in revenues in the third quarter.
The Zacks Consensus Estimate for the Active group and Work group segments’ revenues is pegged at $281.6 million and $84.8 million, respectively, indicating a decline of 14.3% and 31.1% year over year.
Nonetheless, Wolverine has implemented several strategic initiatives aimed at revitalizing its brand portfolio and enhancing consumer engagement. The company has been focused on expanding its direct-to-consumer channels, which have become increasingly vital in reaching customers directly and building brand loyalty. Wolverine has also been investing in innovative marketing campaigns to better connect with consumers.
Wolverine expects a notable improvement in its gross margin for the third quarter. The gross margin is estimated at 45%, a substantial rise of 300 basis points from the previous year. This improvement is attributed to several factors, including significantly lower supply-chain costs, reduced sales of end-of-life inventory, less promotional activity in e-commerce sales and a more favorable mix of distribution channels.
For the third quarter, the company anticipates an adjusted operating margin of 7% and adjusted earnings per share of 20 cents. These forecasts highlight Wolverine’s strategic efforts to stabilize the business amid a rapidly changing landscape.
What the Zacks Model Predicts for WWW
Our proven model does not conclusively predict an earnings beat for Wolverine this time. 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, which is not the case here.
Wolverine has an Earnings ESP of 0.00% and a Zacks Rank of 2. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies, which according to our model, have the correct combination to beat on earnings this time around:
The company is anticipated to witness a top-line increase in its third-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.18 billion, which indicates an 11.3% increase from the year-ago level.
The company’s bottom line is expected to have increased. The consensus estimate for Abercrombie & Fitch’s earnings is pegged at $2.31 per share, up 26.2% from the year-ago level. ANF has a trailing four-quarter earnings surprise of 28%, on average.
Dutch Bros (BROS - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank of 1 at present. The Zacks Consensus Estimate for third-quarter earnings per share is pegged at 12 cents, which implies a 14.3% year-over-year decline.
Dutch Bros’ top line is expected to have increased year over year. The consensus estimate for quarterly revenues is pegged at $324.5 million, which indicates growth of 22.7% from the prior-year level. BROS has a trailing four-quarter earnings surprise of 149%, on average.
Best Buy (BBY - Free Report) presently has an Earnings ESP of +0.06% and a Zacks Rank of 2 at present. The company is slated to register a top-line decline when it reports fiscal third-quarter results. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.63 billion, which indicates a decline of 1.3% from the figure reported in the prior-year quarter.
The consensus estimate for Best Buy’s quarterly earnings has remained unchanged over the past 30 days at $1.30 per share. The figure indicates growth of 0.8% from the year-ago quarter’s number. BBY delivered an average earnings surprise of 11.4% in the trailing four quarters.
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What Should Investors Expect From WWW Ahead of Q3 Earnings?
We expect Wolverine World Wide, Inc. (WWW - Free Report) to register top-line decline and bottom-line growth when it reports third-quarter 2024 earnings on Nov. 7, before market open. Investors are paying close attention for insights into the company’s performance and strategic direction.
The Zacks Consensus Estimate for revenues is pegged at $421.1 million, indicating a decrease of 20.2% from the prior-year figure.
The consensus mark for the bottom line has remained unchanged in the past 30 days at 21 cents, which indicates a sharp increase from the year-ago reported earnings of 7 cents per share.
Wolverine has a trailing four-quarter earnings surprise of 7.5%, on average. In the last reported quarter, this Michigan-based company's earnings surpassed the Zacks Consensus Estimate by a margin of 50%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Wolverine World Wide, Inc. Price, Consensus and EPS Surprise
Wolverine World Wide, Inc. price-consensus-eps-surprise-chart | Wolverine World Wide, Inc. Quote
Factors Likely to Have Shaped Wolverine’s Q3 Performance
Wolverine has acknowledged the dynamic and challenging macroeconomic environment, which continues to pose risks to consumer demand. Also, intensifying competition within the footwear industry adds another layer of complexity to its revenue outlook. Wolverine's performance is heavily reliant on the success of its key brands, such as Saucony and Merrell, which have lately shown softness in sales. Consequently, these challenges are likely to have led to a decrease in revenues in the third quarter.
The Zacks Consensus Estimate for the Active group and Work group segments’ revenues is pegged at $281.6 million and $84.8 million, respectively, indicating a decline of 14.3% and 31.1% year over year.
Nonetheless, Wolverine has implemented several strategic initiatives aimed at revitalizing its brand portfolio and enhancing consumer engagement. The company has been focused on expanding its direct-to-consumer channels, which have become increasingly vital in reaching customers directly and building brand loyalty. Wolverine has also been investing in innovative marketing campaigns to better connect with consumers.
Wolverine expects a notable improvement in its gross margin for the third quarter. The gross margin is estimated at 45%, a substantial rise of 300 basis points from the previous year. This improvement is attributed to several factors, including significantly lower supply-chain costs, reduced sales of end-of-life inventory, less promotional activity in e-commerce sales and a more favorable mix of distribution channels.
For the third quarter, the company anticipates an adjusted operating margin of 7% and adjusted earnings per share of 20 cents. These forecasts highlight Wolverine’s strategic efforts to stabilize the business amid a rapidly changing landscape.
What the Zacks Model Predicts for WWW
Our proven model does not conclusively predict an earnings beat for Wolverine this time. 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, which is not the case here.
Wolverine has an Earnings ESP of 0.00% and a Zacks Rank of 2. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies, which according to our model, have the correct combination to beat on earnings this time around:
Abercrombie & Fitch Co. (ANF - Free Report) has an Earnings ESP of +3.97% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is anticipated to witness a top-line increase in its third-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.18 billion, which indicates an 11.3% increase from the year-ago level.
The company’s bottom line is expected to have increased. The consensus estimate for Abercrombie & Fitch’s earnings is pegged at $2.31 per share, up 26.2% from the year-ago level. ANF has a trailing four-quarter earnings surprise of 28%, on average.
Dutch Bros (BROS - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank of 1 at present. The Zacks Consensus Estimate for third-quarter earnings per share is pegged at 12 cents, which implies a 14.3% year-over-year decline.
Dutch Bros’ top line is expected to have increased year over year. The consensus estimate for quarterly revenues is pegged at $324.5 million, which indicates growth of 22.7% from the prior-year level. BROS has a trailing four-quarter earnings surprise of 149%, on average.
Best Buy (BBY - Free Report) presently has an Earnings ESP of +0.06% and a Zacks Rank of 2 at present. The company is slated to register a top-line decline when it reports fiscal third-quarter results. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.63 billion, which indicates a decline of 1.3% from the figure reported in the prior-year quarter.
The consensus estimate for Best Buy’s quarterly earnings has remained unchanged over the past 30 days at $1.30 per share. The figure indicates growth of 0.8% from the year-ago quarter’s number. BBY delivered an average earnings surprise of 11.4% in the trailing four quarters.