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Will Wolverine's Bet on Saucony & Merrell Pay Off in the Long Run?
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Key Takeaways
Saucony's revenues rose 29.6% to $129.8M, with the Asia-Pacific sales more than doubling y/y.
Merrell's revenues climbed 13.2% to $150.6M, marking nine U.S. hiking share gains in 10 quarters.
The gross margin grew nearly 400 bps at Saucony and above 200 bps at Merrell on pricing and mix.
Wolverine World Wide, Inc. (WWW - Free Report) delivered a strong performance in the first quarter of 2025, led by the continued momentum of its two flagship brands, Saucony and Merrell. These brands, which anchor the company’s Active Group, achieved double-digit revenue growth and margin expansion in the quarter.
Both brands demonstrated broad-based strength across geographies and sales channels, supported by innovative product launches, enhanced inventory management and investments.
Saucony reported a 29.6% year-over-year increase in revenues to $129.8 million in the first quarter. The brand experienced significant growth in North America and more than doubled its sales in the Asia-Pacific region. The gross margin improved by nearly 400 basis points, driven by a healthier mix of full-price sales and reduced promotional activity.
Performance-running franchises such as Ride, Guide, Triumph and Hurricane posted strong gains, while the launch of the Endorphin Elite 2 drove more than 30% year-over-year growth in the Endorphin franchise.
The lifestyle segment also played a key role in Saucony’s growth. With trend-forward styles like the ProGrid Omni 9 and Ride Millennium, the brand expanded into 900 new lifestyle retail doors this spring and plans to add 400 more in the second half of 2025.
International expansion is underway, with a flagship store opened in Tokyo’s Harajuku district and another set to launch in London’s Covent Garden. Enhanced brand visibility through events such as the London 10K, alongside expanded digital marketing, is driving stronger e-commerce and in-store sell-through.
Merrell, another of Wolverine’s leading brands, recorded 13.2% year-over-year revenue growth to $150.6 million. The brand showed strong performance in the Asia Pacific and EMEA, and continued to gain share in the U.S. hiking category, marking its ninth market share gain in 10 quarters. Merrell’s gross margin rose more than 200 basis points, supported by premium pricing and efficient inventory management.
High-performing product lines included the Moab Speed 2 and Agility Peak 5, while the new SpeedARC Surge Boa, priced near $300, sold through rapidly, highlighting strong consumer demand for premium, innovation-driven footwear. Merrell’s lifestyle segment also delivered robust double-digit growth, particularly among younger consumers in key fashion-forward retail accounts.
Together, Saucony and Merrell reflect Wolverine’s successful brand revitalization and strategic execution. Their strong product innovation pipelines, expanding global footprint and disciplined marketing efforts position both brands for sustained growth and continued momentum throughout 2025. For the second quarter, the company expects revenues between $440 million and $450 million, indicating growth of 3.7-6% from the year-ago period.
WWW Stock Past Three-Month Performance
Image Source: Zacks Investment Research
Wolverine’s Stock Performance
Shares of this leading designer and producer of innovative, niche footwear and accessories are currently trading 28.6% below its 52-week high of $24.64 attained on Dec. 11, 2024, making investors contemplate their next moves. In the past three months, the WWW stock has gained 27.8% against the Zacks Shoes and Retail Apparel industry’s 8.6% decline.
The company’s ongoing strategic approach and product diversification have also helped it outperform the broader Zacks Consumer Discretionary sector and the S&P 500 index’s growth of 7.4% and 5.5%, respectively, during the same period.
This Zacks Rank #3 (Hold) company has demonstrated strong upward momentum, trading above its 50 and 200-day simple moving averages (SMAs). The company ended Wednesday’s trading session at $17.60, above its 50 and 200-day SMAs of $15.14 and $17.42, respectively, highlighting a continued uptrend. This technical strength, combined with consistent momentum, indicates positive market sentiment and investor confidence in Wolverine’s financial stability and growth potential.
The Zacks Consensus Estimate for Stitch Fix’s current fiscal-year earnings implies growth of 69.7% from the year-ago actuals. SFIX delivered a trailing four-quarter average earnings surprise of 51.4%.
Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Canada Goose’s current fiscal-year earnings and sales indicates growth of 10% and 2.9%, respectively, from the year-ago actuals. Canada Goose delivered a trailing four-quarter average earnings surprise of 57.2%.
Allbirds is a lifestyle brand that uses naturally derived materials to make footwear and apparel products. It carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for BIRD’s current financial-year earnings implies growth of 16.1% from the year-ago actual. The company delivered a trailing four-quarter average earnings surprise of 21.3%.
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Will Wolverine's Bet on Saucony & Merrell Pay Off in the Long Run?
Key Takeaways
Wolverine World Wide, Inc. (WWW - Free Report) delivered a strong performance in the first quarter of 2025, led by the continued momentum of its two flagship brands, Saucony and Merrell. These brands, which anchor the company’s Active Group, achieved double-digit revenue growth and margin expansion in the quarter.
Both brands demonstrated broad-based strength across geographies and sales channels, supported by innovative product launches, enhanced inventory management and investments.
Saucony reported a 29.6% year-over-year increase in revenues to $129.8 million in the first quarter. The brand experienced significant growth in North America and more than doubled its sales in the Asia-Pacific region. The gross margin improved by nearly 400 basis points, driven by a healthier mix of full-price sales and reduced promotional activity.
Performance-running franchises such as Ride, Guide, Triumph and Hurricane posted strong gains, while the launch of the Endorphin Elite 2 drove more than 30% year-over-year growth in the Endorphin franchise.
The lifestyle segment also played a key role in Saucony’s growth. With trend-forward styles like the ProGrid Omni 9 and Ride Millennium, the brand expanded into 900 new lifestyle retail doors this spring and plans to add 400 more in the second half of 2025.
International expansion is underway, with a flagship store opened in Tokyo’s Harajuku district and another set to launch in London’s Covent Garden. Enhanced brand visibility through events such as the London 10K, alongside expanded digital marketing, is driving stronger e-commerce and in-store sell-through.
Merrell, another of Wolverine’s leading brands, recorded 13.2% year-over-year revenue growth to $150.6 million. The brand showed strong performance in the Asia Pacific and EMEA, and continued to gain share in the U.S. hiking category, marking its ninth market share gain in 10 quarters. Merrell’s gross margin rose more than 200 basis points, supported by premium pricing and efficient inventory management.
High-performing product lines included the Moab Speed 2 and Agility Peak 5, while the new SpeedARC Surge Boa, priced near $300, sold through rapidly, highlighting strong consumer demand for premium, innovation-driven footwear. Merrell’s lifestyle segment also delivered robust double-digit growth, particularly among younger consumers in key fashion-forward retail accounts.
Together, Saucony and Merrell reflect Wolverine’s successful brand revitalization and strategic execution. Their strong product innovation pipelines, expanding global footprint and disciplined marketing efforts position both brands for sustained growth and continued momentum throughout 2025. For the second quarter, the company expects revenues between $440 million and $450 million, indicating growth of 3.7-6% from the year-ago period.
WWW Stock Past Three-Month Performance
Image Source: Zacks Investment Research
Wolverine’s Stock Performance
Shares of this leading designer and producer of innovative, niche footwear and accessories are currently trading 28.6% below its 52-week high of $24.64 attained on Dec. 11, 2024, making investors contemplate their next moves. In the past three months, the WWW stock has gained 27.8% against the Zacks Shoes and Retail Apparel industry’s 8.6% decline.
The company’s ongoing strategic approach and product diversification have also helped it outperform the broader Zacks Consumer Discretionary sector and the S&P 500 index’s growth of 7.4% and 5.5%, respectively, during the same period.
This Zacks Rank #3 (Hold) company has demonstrated strong upward momentum, trading above its 50 and 200-day simple moving averages (SMAs). The company ended Wednesday’s trading session at $17.60, above its 50 and 200-day SMAs of $15.14 and $17.42, respectively, highlighting a continued uptrend. This technical strength, combined with consistent momentum, indicates positive market sentiment and investor confidence in Wolverine’s financial stability and growth potential.
WWW Trades Above 50 & 200-Day Moving Averages
Image Source: Zacks Investment Research
Key Picks
Some better-ranked stocks are Stitch Fix (SFIX - Free Report) , Canada Goose (GOOS - Free Report) and Allbirds Inc. (BIRD - Free Report) .
Stitch Fix delivers customized shipments of apparel, shoes and accessories for women, men and kids. It carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Stitch Fix’s current fiscal-year earnings implies growth of 69.7% from the year-ago actuals. SFIX delivered a trailing four-quarter average earnings surprise of 51.4%.
Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Canada Goose’s current fiscal-year earnings and sales indicates growth of 10% and 2.9%, respectively, from the year-ago actuals. Canada Goose delivered a trailing four-quarter average earnings surprise of 57.2%.
Allbirds is a lifestyle brand that uses naturally derived materials to make footwear and apparel products. It carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for BIRD’s current financial-year earnings implies growth of 16.1% from the year-ago actual. The company delivered a trailing four-quarter average earnings surprise of 21.3%.