Latest news with #WolverineWorldwide
Yahoo
6 days ago
- Business
- Yahoo
WWW Q1 Earnings Call: Tariff Uncertainty Tempers Strong Brand Momentum
Footwear conglomerate Wolverine Worldwide (NYSE:WWW) fell short of the market's revenue expectations in Q1 CY2025 as sales rose 4.4% year on year to $412.3 million. Its non-GAAP EPS of $0.18 per share was 64.2% above analysts' consensus estimates. Is now the time to buy WWW? Find out in our full research report (it's free). Revenue: $412.3 million (4.4% year-on-year growth) Adjusted EPS: $0.18 vs analyst estimates of $0.11 (64.2% beat) Revenue Guidance for Q2 CY2025 is $445 million at the midpoint, roughly in line with what analysts were expecting Adjusted EPS guidance for Q2 CY2025 is $0.22 at the midpoint, below analyst estimates of $0.24 Operating Margin: 4.8%, up from -0.8% in the same quarter last year Market Capitalization: $1.35 billion Wolverine Worldwide's first quarter results reflected continued progress in reinvigorating its key brands, as management emphasized robust growth in Saucony and Merrell. CEO Chris Hufnagel highlighted sequential improvements in top-line trends, crediting a disciplined approach to inventory management and reduced promotional activity for driving higher gross margins. Saucony's performance was attributed to new product launches like the Endorphin Elite 2 and expanded lifestyle distribution, while Merrell benefited from product innovation in trail and hike categories. Management acknowledged ongoing challenges in the Work Group and Sweaty Betty brands, but noted meaningful gross margin gains in Sweaty Betty through a shift toward full-price sales and reduced discounting. Looking ahead, Wolverine Worldwide is focused on mitigating the impact of recently announced tariffs and navigating a fluid consumer environment. Management withdrew full-year guidance, citing significant uncertainty around trade policy and consumer sentiment. CEO Chris Hufnagel outlined plans to leverage a diversified supply chain, implement targeted price increases, and intensify operational cost controls to offset an estimated $30 million profit impact from tariffs. While the company expects continued revenue growth from its largest brands and a more balanced approach to inventory, CFO Taryn Miller cautioned that the second half of 2025 could bring greater margin pressures as tariff effects intensify. Management attributed first quarter gains to strong demand for Saucony and Merrell, strategic pricing, and improved inventory discipline, but highlighted new tariff headwinds and mixed performance in smaller brands. Saucony's performance run and lifestyle growth: Saucony delivered 30% year-over-year revenue growth, driven by new launches in both performance running (e.g., Endorphin Elite 2) and lifestyle segments, with expanded distribution into over 900 new doors. Merrell innovation and market share: Merrell achieved double-digit revenue growth, gaining share in hike, trail, and lifestyle categories. The brand's focus on modernizing core franchises and launching visually distinctive products like the SpeedARC Surge Boa contributed to its momentum. Sweaty Betty profitability focus: Management prioritized margin expansion at Sweaty Betty, shifting away from promotions to a more full-price strategy. Gross margin improved by nearly 1,000 basis points, although this came at the expense of top-line growth. Work Group challenges: The Work Group saw revenue declines, partially due to lapping prior-year discounting and challenges in the product offering. Management is introducing new products and expects performance to stabilize as inventory normalizes. Supply chain diversification and tariff mitigation: Wolverine has reduced U.S. sourcing from China to less than 10%, aiming for near zero by 2026. Management is leveraging a nimble supply chain and dual sourcing to limit tariff exposure and redirect product to international markets. Wolverine Worldwide's outlook is shaped by efforts to counter tariff headwinds, strengthen its largest brands, and adapt spending in response to an uncertain economic environment. Tariff mitigation and pricing actions: Management expects incremental tariffs to impact 2025 profit by about $30 million before mitigation. To address this, the company is accelerating supply chain diversification and implementing selective price increases, though these are not expected to fully offset cost pressures. Investment in core brands and retail expansion: Continued investment in Saucony and Merrell, including new product launches and international store openings, is expected to drive revenue growth. The company is also ramping up retail marketing and city activations to build brand awareness despite a more cautious approach to discretionary spending. Operational cost controls and cautious inventory management: The company is scrutinizing SG&A (selling, general and administrative) costs and managing inventory more conservatively, particularly in categories facing softer demand. Management's new integrated business planning group is tasked with aligning inventory levels to expected demand and preventing excess stock in the event of a consumer slowdown. In coming quarters, the StockStory team will be watching (1) the effectiveness of tariff mitigation strategies and their impact on margins, (2) the ability of Saucony and Merrell to sustain growth amid increased pricing and operational changes, and (3) signs of improved stability or turnaround in the Work Group and Sweaty Betty brands. Execution on inventory management and the balance between pricing actions and consumer demand will also be critical markers of success. Wolverine Worldwide currently trades at a forward P/E ratio of 15×. At this valuation, is it a buy or sell post earnings? See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. 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Yahoo
27-05-2025
- Business
- Yahoo
Wolverine Worldwide, Soho House, Funko, Manitowoc, and Columbus McKinnon Stocks Trade Up, What You Need To Know
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Footwear company Wolverine Worldwide (NYSE:WWW) jumped 5.1%. Is now the time to buy Wolverine Worldwide? Access our full analysis report here, it's free. Travel and Vacation Providers company Soho House (NYSE:SHCO) jumped 5.1%. Is now the time to buy Soho House? Access our full analysis report here, it's free. Toys and Electronics company Funko (NASDAQ:FNKO) jumped 5.6%. Is now the time to buy Funko? Access our full analysis report here, it's free. Construction Machinery company Manitowoc (NYSE:MTW) jumped 5.5%. Is now the time to buy Manitowoc? Access our full analysis report here, it's free. General Industrial Machinery company Columbus McKinnon (NASDAQ:CMCO) jumped 6.2%. Is now the time to buy Columbus McKinnon? Access our full analysis report here, it's free. Columbus McKinnon's shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. Columbus McKinnon is down 51.9% since the beginning of the year, and at $17.78 per share, it is trading 59.5% below its 52-week high of $43.93 from May 2024. Investors who bought $1,000 worth of Columbus McKinnon's shares 5 years ago would now be looking at an investment worth $564.09. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
Fashion Network
22-05-2025
- Business
- Fashion Network
Wolverine Worldwide unveils renovated global headquarters in Michigan
Home › News › Industry Download Print Wolverine Worldwide has unveiled a renovated global headquarters in Rockford, Michigan, aimed at modernizing its facilities and centralizing operations to attract and retain top talent. Wolverine Worldwide unveils renovated global headquarters in Michigan. - Wolverine Worldwide The project includes a complete overhaul of 40,000 square feet of space, now named "The Factory", which will serve as the new home for Wolverine's flagship brands Merrell and Saucony. Notably, Saucony recently relocated from Boston to Rockford. 'Our company is driven by a new vision to Make. Every Day. Better. – for our team, customers, consumers, shareholders, and community,' said Chris Hufnagel, president and chief executive officer of Wolverine Worldwide. 'We believe that to create amazing, thoughtful, trend-right, innovative products and experiences that improve our consumers' lives and drive growth, we must provide our team members with great environments to work and win together.' Built in 1963 and originally used as a footwear factory, the space was converted into offices in the 1990s. The newly redesigned factory combines the site's industrial heritage with modern functionality. It now features exposed structural elements, concrete floors, floor-to-ceiling windows, 224 workstations, brand-specific product and marketing rooms, 31 collaboration and meeting spaces, a café, and state-of-art design and marketing technologies. The factory joins other enhancements across Wolverine's 300,000-square-foot campus, including on-site amenities such as a subsidized daycare and early education center for children, a fitness center, four miles of on-campus nature trails, an on-site, subsidized cafeteria, and dog daycare services. The project is supported by a $1-million Michigan Business Development Program grant in collaboration with the Michigan Economic Development Center (MEDC) and The Right Place, Inc. Copyright © 2025 All rights reserved. Tags : Fashion Footwear Industry Business
Fashion Network
22-05-2025
- Business
- Fashion Network
Wolverine Worldwide unveils renovated global headquarters in Michigan
Wolverine Worldwide has unveiled a renovated global headquarters in Rockford, Michigan, aimed at modernizing its facilities and centralizing operations to attract and retain top talent. The project includes a complete overhaul of 40,000 square feet of space, now named "The Factory", which will serve as the new home for Wolverine's flagship brands Merrell and Saucony. Notably, Saucony recently relocated from Boston to Rockford. 'Our company is driven by a new vision to Make. Every Day. Better. – for our team, customers, consumers, shareholders, and community,' said Chris Hufnagel, president and chief executive officer of Wolverine Worldwide. 'We believe that to create amazing, thoughtful, trend-right, innovative products and experiences that improve our consumers' lives and drive growth, we must provide our team members with great environments to work and win together.' Built in 1963 and originally used as a footwear factory, the space was converted into offices in the 1990s. The newly redesigned factory combines the site's industrial heritage with modern functionality. It now features exposed structural elements, concrete floors, floor-to-ceiling windows, 224 workstations, brand-specific product and marketing rooms, 31 collaboration and meeting spaces, a café, and state-of-art design and marketing technologies. The factory joins other enhancements across Wolverine's 300,000-square-foot campus, including on-site amenities such as a subsidized daycare and early education center for children, a fitness center, four miles of on-campus nature trails, an on-site, subsidized cafeteria, and dog daycare services. The project is supported by a $1-million Michigan Business Development Program grant in collaboration with the Michigan Economic Development Center (MEDC) and The Right Place, Inc.
Yahoo
21-05-2025
- Business
- Yahoo
Wolverine Targeting China Sourcing to be ‘Near Zero' by 2026 as Company Aims to ‘Mitigate' Risks From Trump Tariff War
Wolverine Worldwide is not waiting around for President Trump to resolve his ongoing trade war with China. In the company's first quarter 2025 earnings call on Thursday, president and chief executive officer of Wolverine Worldwide Chris Hufnagel told analysts that he is 'optimistic' amid the ongoing tariff dispute since the company has been working since the pandemic to diversify its sourcing. More from WWD Wolverine Worldwide Unveils 'Major Renovation' to Michigan HQ Featuring New Merrell and Saucony Spaces + More Amenities How Leaders Tackle Tariffs, Supply Chain Costs and Geopolitical Uncertainty Amer Sports Raises 2025 Guidance, Tariffs Not Major Concern Hufnagel noted that six years ago, nearly 40 percent of products sold in the U.S. by the company were sourced from China. This year, the company expects that to be just high single digits, primarily within its Work Group brands like its namesake line Wolverine boots. '[In 2025], less than 10 percent of our products are now expected to be sourced from China, down from the mid teens just earlier this year,' the CEO said. 'We're targeting to push this down to near zero in 2026.' But even with this decrease in reliance on China sourcing, Hufnagel noted that the company expects the incremental tariff rates of 145 percent for China, and 10 percent for other sourcing countries, to translate to an estimated $30 million profit impact in 2025, hitting the company's gross margin profit. Still, Hufnagel is pushing ahead on his growth plans for the company. 'I'm pleased to report our business is strong and growing outside the U.S., up mid-teens year over year in the first quarter, with a good outlook for the balance of the year,' he said. 'We have a solid plan to protect profitability, while also working to protect the momentum we generated across a range of model scenarios.' This plan consists of three components, Hufnagel mentioned. The first is to mitigate the impact of tariffs, which includes a 'holistic balance set of actions across the entire value chain.' 'We plan to leverage our diversified supply chain and dual sourcing flexibility to the maximum extent possible to limit our exposure to elevated tariffs on goods sourced from China into the U.S.,' the CEO said. 'In addition, we're in discussion with our supply chain partners on the financial impact of the tariffs and redirecting products into our vast international distribution network where we have demand tailwinds without onerous tariffs.' The last component is to implement 'strategic and surgical price adjustments.' 'Taking price increases is not something we do without significant consideration, but we believe our brands and momentum, positioning in the marketplace, and product innovation pipelines will help limit potential demand headwinds,' Hufnagel said. 'To navigate what is still a very fluid situation going forward, we've formed a dedicated internal team which is meeting daily, helping surface insights, align planning, and drive action at pace across the global enterprise.' This plan comes as the company's Saucony and Merrell brands both posted double-digit growth in the first quarter. The Rockford, Mich.-based footwear company said total revenue in the first quarter of 2025 was $412.3 million, up 4.4 percent from $394.9 million the same time last year. Ongoing total revenue in Q1 – which excludes the results of the Sperry business, which was sold in January 2024 – was also $412.3 million, an increase of 5.5 percent from $390.8 million the prior year period. Looking ahead, the company said it expects to see 'continued momentum' as it moves into the second quarter. Revenue in Q2 is expected to be approximately $440 million to $450 million, representing growth of approximately 3.7 percent to 6.0 percent compared to the second quarter of 2024. 'We're obviously anxious to see what happens with the trade war and where that is,' Hufnagel added on Thursday's call. 'At the same time, we're moving quickly to mitigate the risks that we see today and then certainly work to exploit the opportunities that we believe we have or that we may have in the future. At the same time, trying to run the company really responsibly in the face of this sort of unprecedented event. Best of WWD Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos] Crocs Collaborations From Celebrities & Big Brands You Should Know Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
