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Wolverine World Wide (WWW)
NYSE:WWW
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Wolverine World Wide
(NYSE:WWW)
Select Model
Select Model
Rating:61Neutral
Price Target:
$21.00
▲(17.98% Upside)
Action:ReiteratedDate:02/27/26
WWW scores highest on improving fundamentals and upbeat, cash-flow-supported guidance, but is held back by leverage on the balance sheet and a weak longer-term technical trend (below the 100- and 200-day averages with slightly negative MACD). Valuation is reasonable rather than compelling, limiting upside support if tariff and segment-reset risks persist.
Positive Factors
Free cash flow strength
WWW's recent surge in operating free cash flow (reported $126M) and free cash flow roughly tracking net income across 2024–2026 creates durable financial optionality. Consistent cash generation supports continued debt reduction, targeted brand investment, modest buybacks, and capex funding while improving resilience versus retail cycles.
Saucony brand momentum
Saucony's breakout growth and DTC traction represent a durable growth engine within the portfolio. Strong product sell-through, lifestyle expansion, and elevated direct-to-consumer mix increase long-term revenue visibility, improve channel margin capture, and reduce dependence on volatile wholesale flows as the brand scales.
Sustained margin improvement
Material gross- and operating-margin expansion driven by mix, lower supply-chain cost, and full-price sell-through has raised structural profitability. Even with 2026 pressure, margin mitigation actions and higher-margin brand mix should sustain above-cycle operating margins and support cash conversion over the next several quarters.
Negative Factors
Elevated leverage
Although net debt was reduced, total debt and a debt-to-equity ratio above 1x leave the capital structure relatively leveraged. That limits runway for transformational investments, increases interest-rate sensitivity, and reduces the buffer against retail volatility; ongoing cash generation is required to materially de-risk the balance sheet.
Tariff and policy risk
A structural ~$60M unmitigated tariff exposure (about 300bps of gross margin) creates persistent margin volatility and forces recurring mitigation via pricing, mix shifts, or cost cuts. If policy or supply-chain solutions don't materialize, tariff drag can erode margin sustainability and constrain reinvestment and pricing competitiveness over many quarters.
Multi-brand execution gaps
Several core brands need multi-quarter resets (Wolverine decline and flat guidance, Work Group weakness, Sweaty Betty U.S. reset). Protracted turnarounds require elevated marketing and inventory investments, compress near-term returns, and increase execution risk across the portfolio until brand repositioning and distribution fixes take hold.
Wolverine World Wide (WWW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.45B
Dividend Yield2.28%
Average Volume (3M)1.44M
Price to Earnings (P/E)15.5
Beta (1Y)1.90
Revenue Growth3.61%
EPS GrowthN/A
CountryUS
Employees3,100
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)0.45
Shares Outstanding81,315,285
10 Day Avg. Volume1,773,646
30 Day Avg. Volume1,440,394
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)3.65
Price to Sales (P/S)0.79
P/FCF Ratio11.85
Enterprise Value/Market Cap1.46
Enterprise Value/Revenue1.13
Enterprise Value/Gross Profit2.38
Enterprise Value/Ebitda11.71
Forecast
1Y Price Target
$23.44Price Target Upside31.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)1.36
Revenue Forecast (FY)$1.95B
Wolverine World Wide Business Overview & Revenue Model
Company DescriptionWolverine World Wide, Inc. designs, manufactures, sources, markets, licenses, and distributes footwear, apparel, and accessories in the United States, Europe, the Middle East, Africa, the Asia Pacific, Canada and Latin America. The company operates through two segments, Wolverine Michigan Group and Wolverine Boston Group. It offers casual footwear and apparel; performance outdoor and athletic footwear and apparel; kids' footwear; industrial work boots and apparel; and uniform shoes and boots. The company sources, markets, and licenses a range of footwear styles, such as shoes, boots, and sandals under the Bates, Cat, Chaco, Harley-Davidson, Hush Puppies, Hytest, Keds, Merrell, Saucony, Sperry, Sweaty Betty, Wolverine, and Stride Rite brands. It also markets Merrell and Wolverine branded apparel and accessories, as well as licenses its brands for use on non-footwear products, including the Hush Puppies apparel, eyewear, watches, socks, handbags, and plush toys; Wolverine branded eyewear and gloves; and Keds, Saucony, and Sperry branded apparel. In addition, the company markets pigskin leather under the Wolverine Warrior Leather, Weather Tight, and All Season Weather Leathers trademarks for use in the footwear industry. Further, it operates brick and mortar retail stores, and eCommerce sites. The company sells its products to department stores, national chains, catalog and specialty retailers, independent retailers, uniform outlets, and mass merchant and government customers through retail stores, as well as through third-party licensees and distributors, and joint ventures. As of January 1, 2022, it operated 143 retail stores, as well as 65 consumer-direct eCommerce sites. Wolverine World Wide, Inc. was founded in 1883 and is based in Rockford, Michigan.
How the Company Makes MoneyWolverine World Wide generates revenue primarily through the sale of its branded footwear and apparel across various retail channels, including wholesale distribution, direct-to-consumer sales through branded retail stores, and e-commerce platforms. The company benefits from a broad geographic reach, with significant sales in North America and international markets. Key revenue streams include sales from its prominent brands, which are supported by strategic marketing initiatives and seasonal collections. Additionally, Wolverine partners with various retailers and distributors to extend its market presence, while also engaging in licensing agreements that allow third-party manufacturers to produce products under its brand names, further diversifying its income sources. The company's focus on product innovation and collaborations with influencers and athletes also helps drive consumer demand and brand loyalty, contributing to its overall profitability.
Wolverine World Wide Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows sales performance across various business segments, indicating which segments are growing or declining and how the company is diversifying its revenue streams.
Shows sales performance across various business segments, indicating which segments are growing or declining and how the company is diversifying its revenue streams.
Data provided by:
The Fly
The FlyWolverine World Wide Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call conveyed solid execution and notable progress: full-year revenue growth, significant margin expansion, a 53% increase in adjusted EPS, strong Free Cash Flow and debt reduction, and standout brand momentum (notably Saucony and Merrell). Management provided constructive 2026 guidance with continued brand investments and disciplined cost actions. Key headwinds include meaningful tariff-driven margin pressure, ongoing recalibration of the Wolverine and Work Group businesses, Sweaty Betty's U.S. reset, and distribution rationalization for Saucony lifestyle—risks that management is addressing. On balance, the positive financial results, cash generation, and clear brand momentum materially outweigh the near-term operational and policy challenges.Q4-2025 Updates
Positive Updates
Full-Year Revenue Growth
Fiscal 2025 revenue of $1.874 billion, up 7% reported and 6% on a constant currency basis (foreign currency benefit ~$14M). The 53rd week contributed ~70 basis points to revenue, concentrated in DTC.
Strong Margin Expansion
Full-year gross margin improved to 47.3%, up ~300 basis points year-over-year, driven by lower supply chain costs and a favorable mix toward full-price sales; full-year adjusted operating margin rose to 9.0%, up ~170 basis points.
Material EPS and Cash Flow Improvement
Adjusted diluted EPS increased 53% to $1.35 (from $0.88). Operating free cash flow was $126M (above $90M midpoint guidance), enabling net debt reduction of $81M to $415M and bank-defined leverage of ~2.0x.
Quarterly Outperformance vs. Guidance
Q4 revenue was $517M, above the guidance midpoint of $506M; reported Q4 growth +5% (constant currency +3%), with Active Group growth (Q4) +10% outperforming guidance.
Saucony Record Year and High Growth
Saucony delivered a record year (company noted a 30% increase vs. 2024) and Q4 revenue +24%; DTC for Saucony grew mid-teens in Q4. Management guides Saucony to low- to mid-teens growth in 2026.
Merrell Growth and Product Momentum
Merrell achieved high single-digit growth for the year and Q4 revenue +5%; DTC inflected to mid-single-digit growth in Q4. Key product franchises (Moab Speed 2, Moab 3, Agility Peak) showed strong sell-through and new launches (Agility Peak 6) tracking well.
Improved DTC Performance
Consolidated DTC revenue grew +4% in Q4 (benefiting from the 53rd week); Merrell and Saucony drove much of the DTC improvement with better holiday sell-through and return-to-growth in multiple regions.
Brand-Building Investments and Market Share Gains
Company increased marketing and brand-building (including major Saucony investments and Merrell sponsorships) while reporting market-share gains in key categories (e.g., Merrell in U.S. hike, Saucony in lifestyle).
Share Repurchase and Capital Allocation
Repurchased ~$15M of common stock in Q4 at an average price of $16.13 to offset dilution; ~$135M remains under current repurchase authorization; capital expenditures guided at ~$20M for 2026.
Prudent 2026 Financial Outlook
2026 revenue guidance of $1.96B–$1.985B (~5.2% growth at midpoint) with adjusted diluted EPS guidance $1.35–$1.50 and adjusted operating margin ~9.1%, reflecting revenue-led leverage despite tariff headwinds.
Negative Updates
Tariff Headwinds and Policy Uncertainty
Company estimates an unmitigated full-year 2026 tariff impact of approximately $60M (an incremental ~$50M vs. 2025) and expects tariffs to meaningfully pressure gross margin (guidance assumes ~300 basis points unmitigated impact), with policy uncertainty persisting.
Expected Gross Margin Compression in 2026
Gross margin guidance for 2026 is ~46.0%, down ~130 basis points vs. 2025, driven primarily by higher tariff costs partially offset by pricing, mix and mitigation actions.
Wolverine Brand Underperformance
Wolverine revenue declined ~11% in Q4 as the U.S. marketplace recalibration continues; management expects Wolverine to deliver flat revenue in 2026 and the brand reset to take several quarters.
Work Group Weakness
Work Group revenue declined 12% in Q4 (slightly better than expectations) and continues to lag the Active Group recovery.
Sweaty Betty U.S. Reset and Near-Term Headwind
Sweaty Betty grew mid-single digits in Q4 but the ongoing U.S. reset toward a more premium DTC model is a near-term headwind; Sweaty Betty revenue is expected to decline low single digits in 2026 (partly due to absence of the 53rd week).
53rd Week Comparison and FX Effects
The 53rd week in 2025 contributed ~70 basis points to revenue (concentrated in DTC) and its absence in 2026 is a headwind; foreign currency provided a $14M benefit for the year and $8M in Q4, masking some underlying organic trends.
Distribution/Execution Issues in U.S. Lifestyle Doors
Saucony's rapid U.S. lifestyle door expansion included some underperforming doors; management expects U.S. lifestyle to contract in 2026 due to lapping the prior door count and ongoing assortment/distribution rationalization.
Tariff Cadence Risk Across Quarters
Management expects tariff impacts to increase as the year progresses (Q1 unmitigated ~260 basis points to gross margin and full-year ~300 basis points), implying heavier margin pressure in later quarters if mitigation or rate relief does not occur.
Company Guidance
The company guided fiscal 2026 revenue of $1.96B–$1.985B (≈5.2% reported growth at the midpoint; ~$14M FX tailwind), noting the absence of the 53rd week is an ~70 bps headwind and that on a constant‑currency, 53rd‑week‑adjusted basis revenue is targeted to grow ~5.2% (revenue slightly more first‑half weighted with most FX benefit in Q1). By segment/brand, Active Group is expected to grow mid‑single digits, Work Group to be ~flat; Merrell mid‑single digits, Saucony low‑ to mid‑teens, Sweaty Betty down low‑single digits, and Wolverine ~flat. The guide assumes full‑year unmitigated tariff pressure of ~$60M (an incremental ~$50M vs 2025) and estimates gross margin of ~46% (down ~130 bps, with ~300 bps unmitigated tariff impact offset by pricing, mix and savings), adjusted operating margin ~9.1% (up ~10 bps), adjusted diluted EPS $1.35–$1.50 (vs $1.35 in 2025), operating free cash flow $105M–$120M with capex ≈$20M, interest & other ≈$23M, and an ~18% effective tax rate (no share repurchases assumed). First quarter 2026 guidance: revenue $445M–$450M (≈8.5% reported; ~5.1% constant currency), Q1 gross margin ~47.5% (down ~10 bps; ~260 bps unmitigated tariff impact), adjusted operating margin ~6.6% (up ~30 bps) and adjusted EPS $0.20–$0.22.Wolverine World Wide Financial Statement Overview
Summary
Financials show a clear recovery with improving profitability and strong recent free cash flow, but the balance sheet remains a constraint due to still-elevated leverage and a limited equity cushion. Results have also been volatile across the last several years, keeping the score mid-range.Income Statement
Profitability has improved meaningfully versus the loss-making period in 2022–2023: 2024 returned to positive earnings and 2026 shows stronger gross margin (about 47%) and improved net margin (about 5%). Revenue has rebounded in the latest annual period (2026 up materially vs. 2024), but results have been volatile with sharp revenue declines in 2022–2024 and negative EBIT/EBITDA in 2022–2023. Overall, the trajectory is improving, but the multi-year variability keeps the score in the mid-range.64
Positive
Balance Sheet
Leverage remains the key constraint: total debt is still sizable and debt-to-equity, while improving from very elevated levels in 2022–2024, is still above 1x in 2026. Equity has rebuilt versus 2023–2024 but remains relatively modest compared with assets, leaving less cushion if operating conditions weaken. The improving debt load and equity base are positives, but the capital structure is still more leveraged than ideal.48
Neutral
Cash Flow
Cash generation is a relative strength. Free cash flow is positive in the most recent years and surged in 2026, and free cash flow remains well-supported relative to reported earnings (free cash flow close to net income in 2024–2026). That said, cash flow has not been consistent across the cycle (notably negative operating and free cash flow in 2022), and operating cash flow relative to debt remains moderate, indicating debt paydown capacity is improving but not yet robust.71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.87B | 1.75B | 2.24B | 2.68B | 2.41B |
| Gross Profit | 886.70M | 781.50M | 872.50M | 1.07B | 1.03B |
| EBITDA | 180.20M | 130.50M | -46.20M | -171.00M | 207.30M |
| Net Income | 95.80M | 47.90M | -39.60M | -188.30M | 68.60M |
Balance Sheet | |||||
| Total Assets | 1.71B | 1.67B | 2.06B | 2.49B | 2.59B |
| Cash, Cash Equivalents and Short-Term Investments | 206.30M | 152.10M | 179.00M | 131.50M | 161.70M |
| Total Debt | 867.30M | 797.70M | 1.09B | 1.35B | 1.12B |
| Total Liabilities | 1.17B | 1.35B | 1.76B | 2.15B | 1.94B |
| Stockholders Equity | 408.00M | 307.30M | 278.60M | 320.60M | 629.60M |
Cash Flow | |||||
| Free Cash Flow | 125.50M | 159.90M | 107.20M | -215.40M | 69.20M |
| Operating Cash Flow | 140.00M | 180.10M | 121.80M | -178.90M | 86.80M |
| Investing Cash Flow | -13.90M | 86.80M | 171.60M | 54.60M | -437.30M |
| Financing Cash Flow | -73.80M | -299.20M | -246.30M | 107.10M | 169.30M |
Wolverine World Wide Technical Analysis
Negative
17.80
Price Trends
18.15
Negative
18.97
Negative
21.18
Negative
Market Momentum
-0.04
Positive
47.73
Neutral
23.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WWW, the sentiment is Negative. The current price of 17.8 is below the 20-day moving average (MA) of 18.06, below the 50-day MA of 18.15, and below the 200-day MA of 21.18, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 47.73 is Neutral, neither overbought nor oversold. The STOCH value of 23.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WWW.
Wolverine World Wide Risk Analysis
Wolverine World Wide disclosed 34 risk factors in its most recent earnings report. Wolverine World Wide reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Wolverine World Wide Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $340.51M | 9.84 | 8.67% | 2.08% | 4.13% | 53.56% | |
74 Outperform | $310.13M | 12.56 | 9.57% | 9.66% | -3.64% | -16.12% | |
62 Neutral | $4.29B | -57.09 | -5.19% | ― | <0.01% | -77.31% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $1.45B | 15.53 | 25.72% | 2.28% | 3.61% | ― | |
56 Neutral | $2.61B | 66.08 | 5.21% | 1.97% | 6.26% | -66.51% | |
49 Neutral | $380.31M | 39.24 | 3.33% | 2.11% | -2.83% | -86.19% |
* Consumer Cyclical Sector Average
WWW
Wolverine World Wide
17.80
3.81
27.24%
CROX
Crocs
85.38
-18.47
-17.79%
RCKY
Rocky Brands
45.65
27.49
151.34%
SHOO
Steven Madden
35.86
7.63
27.02%
WEYS
Weyco Group
32.48
1.14
3.64%
CAL
Caleres
11.22
-4.90
-30.40%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.