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 (WWW) Devises More Plans to Strengthen Liquidity
Read MoreHide Full Article
Wolverine World Wide, Inc. (WWW - Free Report) has taken additional measures to boost its financial position and liquidity. The company notified that it has amended Senior Credit Facility, including $171 million in aggregate principal amount of incremental 364-day term loans and the sale of $300 million of 6.375% Senior Notes due 2025. Proceeds from these actions are being mainly utilized to repay borrowings under the revolving credit facility.
Including the latest actions, Wolverine’s liquidity with cash and available borrowing on its revolver grew to roughly $940 million, higher than $483 million at the end of first-quarter 2020. Moreover, management is encouraged by its business model, fixed cost structure, e-commerce business and estimated positive operating cash flow for 2020.
Wolverine had earlier prioritized liquidity and asset management in the wake of the coronavirus pandemic. Management continues to envision its cash preservation endeavors to exceed $500 million, enabling the company to deliver about $150-$200 million operating cash flow in the current year. These activities include lowering of planned inventory receipts, drawing down of its revolving credit line, deferring capital spend for 2020 and curbing operating costs for rest of the year.
We note that Wolverine’s first-quarter 2020 top line bore the brunt of the pandemic, as the metric lagged the consensus mark and also fell year over year. March revenues were mainly affected, which hurt the overall top line in the quarter. This also marked this Zacks Rank #4 (Sell) company’s second straight sales miss. The bottom line also declined year over year. The company also continued to report weak gross and operating margins in the first quarter.
Shares of this Rockford, MI-based company fell 41.5%, much wider than the industry’s 14.9% decline over the past three months.
Activision Blizzard boasts an expected long-term earnings growth rate of 18.8% and carries a Zacks Rank #2 (Buy).
H&R Block (HRB - Free Report) , also a Zacks Rank #2 stock, has a long-term earnings growth rate of 10%.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Wolverine (WWW) Devises More Plans to Strengthen Liquidity
Wolverine World Wide, Inc. (WWW - Free Report) has taken additional measures to boost its financial position and liquidity. The company notified that it has amended Senior Credit Facility, including $171 million in aggregate principal amount of incremental 364-day term loans and the sale of $300 million of 6.375% Senior Notes due 2025. Proceeds from these actions are being mainly utilized to repay borrowings under the revolving credit facility.
Including the latest actions, Wolverine’s liquidity with cash and available borrowing on its revolver grew to roughly $940 million, higher than $483 million at the end of first-quarter 2020. Moreover, management is encouraged by its business model, fixed cost structure, e-commerce business and estimated positive operating cash flow for 2020.
Wolverine had earlier prioritized liquidity and asset management in the wake of the coronavirus pandemic. Management continues to envision its cash preservation endeavors to exceed $500 million, enabling the company to deliver about $150-$200 million operating cash flow in the current year. These activities include lowering of planned inventory receipts, drawing down of its revolving credit line, deferring capital spend for 2020 and curbing operating costs for rest of the year.
We note that Wolverine’s first-quarter 2020 top line bore the brunt of the pandemic, as the metric lagged the consensus mark and also fell year over year. March revenues were mainly affected, which hurt the overall top line in the quarter. This also marked this Zacks Rank #4 (Sell) company’s second straight sales miss. The bottom line also declined year over year. The company also continued to report weak gross and operating margins in the first quarter.
Shares of this Rockford, MI-based company fell 41.5%, much wider than the industry’s 14.9% decline over the past three months.
Key Picks in Broader Consumer Discretionary Space
BJ's Wholesale Club (BJ - Free Report) has an expected long-term earnings growth rate of 11% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Activision Blizzard boasts an expected long-term earnings growth rate of 18.8% and carries a Zacks Rank #2 (Buy).
H&R Block (HRB - Free Report) , also a Zacks Rank #2 stock, has a long-term earnings growth rate of 10%.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>