Wolverine World Wide, Inc. (WWW – Free Report) has reported fourth-quarter 2024 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Earnings grew year over year while revenues dipped.
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In the fourth quarter, the company exceeded estimates for revenues and earnings, returning to growth and delivering better-than-anticipated results for 2024. As 2025 begins, Wolverine’s brands are positioned to build on this momentum, supported by a stronger foundation, improved product pipelines and compelling brand storytelling. The team remains encouraged by the progress made and looks forward to continued success.
In the past three months, shares of this Zacks Rank #3 (Hold) company have lost 16.2% compared with the industry’s 0.1% decline.
Wolverine World Wide, Inc. Price, Consensus and EPS Surprise
Wolverine World Wide, Inc. price-consensus-eps-surprise-chart | Wolverine World Wide, Inc. Quote
Insight Into WWW’s Q4 Performance
The company posted adjusted earnings of 42 cents a share, which beat the Zacks Consensus Estimate of 41 cents. The figure turned around from an adjusted loss of 26 cents in the prior-year quarter. At constant currency, the company’s earnings per share were 48 cents, up from the loss of 26 cents in the prior-year quarter.
Total revenues were $494.7 million, down 6.1% on a reported basis and 5.8% on a constant-currency basis. Ongoing revenues of $494.7 million increased 3% on a reported basis and 3.3% on a constant-currency basis. The top line surpassed the Zacks Consensus Estimate of $485 million. The decline was attributable to lower revenues in most segments and brands. Direct-to-consumer revenues on an ongoing basis were $151.7 million, down 7% year over year. WWW’s international business’ revenues on an ongoing basis dropped 1.3% to $252.7 million.
Regarding segments, Active Group’s revenues dipped 2.8% year over year to $331.7 million. However, the segment’s revenues beat the Zacks Consensus Estimate of $327.1 million. Revenues at Work Group increased 20.6% year over year to $151.1 million and surpassed the consensus estimate of $99.6 million. Revenues of the Other segment plunged 80.2% year over year to $11.9 million. However, the metric comfortably topped the consensus estimate of $6.3 million.
Brand-wise, Merrell’s revenues rose 1% year over year to $163.4 million, while Saucony’s revenues fell 5.3% to $99.6 million. Wolverine’s revenues improved 20.5% to $62.4 million. Sweaty Betty generated revenues of $63.4 million, down 5.9% year over year. The Zacks Consensus Estimate for the brands’ revenues was pegged at $165.6 million, $83.4 million, $60.1 million and $67.3 million, respectively.
Wolverine’s Margins & Costs
Adjusted gross profit was $217.7 million, up 19.9% year over year. The adjusted gross margin increased 620 basis points (bps) year over year to 44%. This resulted from reduced supply-chain costs, lower product costs and decreased sales of end-of-life inventory.
Adjusted operating costs dipped 14.6% to $167 million. However, the metric, as a percentage of revenues, decreased 330 bps to 33.8%.
WWW Stock Past Three-Month Performance
Image Source: Zacks Investment Research
Wolverine’s Other Financials
The company ended the quarter with cash and cash equivalents of $152.1 million, long-term debt of $568 million, and stockholders’ equity of $316.5 million.
Net debt was $496 million at the end of the quarter, down $246 million from the previous year. Inventory at the end of the quarter was $241 million, down 35.6% from the year-earlier quarter.
WWW’s 2025 Outlook
For fiscal 2025, the company expects revenues of $1.80-$1.83 billion, suggesting year-over-year growth of 2.5-4.3%, with constant-currency growth of 4.7-6.5%. The gross margin is projected to be 45.5%, indicating a year-over-year improvement of 100 basis points.
The operating margin is expected to be 7.7%, implying a year-over-year increase of 190 bps, whereas the adjusted operating margin is anticipated to be 8.3%, suggesting year-over-year growth of 80 bps.
Earnings per share (EPS) are projected between 95 cents and $1.10, with adjusted EPS between $1.05 and $1.20. These full-year EPS expectations include an estimated negative impact of 8 cents from foreign-currency exchange rate fluctuations.
Key Picks
Some better-ranked stocks are Boot Barn Holdings, Inc. (BOOT – Free Report) , Deckers Outdoor Corporation (DECK – Free Report) and lululemon athletica inc. (LULU – Free Report) .
Boot Barn is a specialty retailer of premium, high-quality casual apparel. It sports a Zacks Rank of 1 (Strong Buy) at present. 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 21.4% and 14.9%, respectively, from the fiscal 2024 reported levels. BOOT delivered a trailing four-quarter average earnings surprise of 7.2%.
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It currently flaunts a Zacks Rank of 1.
The Zacks Consensus Estimate for DECK’s fiscal 2025 earnings and revenues implies growth of 20% and 15.6%, respectively, from the year-ago actuals. DECK delivered a trailing four-quarter average earnings surprise of 36.8%.
lululemon is a yoga-inspired athletic apparel company that creates lifestyle components. It has a Zacks Rank of 2 (Buy) at present. LULU delivered a 6.7% earnings surprise in the last reported quarter.
The consensus estimate for lululemon’s fiscal 2025 earnings and sales indicates growth of 12.5% and 9.7%, respectively, from the fiscal 2024 reported levels. LULU delivered a trailing four-quarter average earnings surprise of 6.7%.
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