Wolverine World Wide (WWW) AI Stock Analysis

• Market Cap: $1.50B
• Dividend Yield: 2.16%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 20.9
• Beta (1Y): 1.66
• Revenue Growth: -13.05%
• EPS Growth: N/A
• Country: US
• Employees: 3,100
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.18
• Shares Outstanding: 81,044,050
• 10 Day Avg. Volume: 1,391,680
• 30 Day Avg. Volume: 1,191,936
• PEG Ratio: 0.01
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.04
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 2.67
• Enterprise Value/Ebitda: 12.18
• 1Y Price Target: $19.63
• Price Target Upside: 5.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 68 Neutral
• Price Target: $16.50 ▼(-10.96%Downside)

Wolverine World Wide is experiencing strong financial performance with improved profitability and robust cash flow generation. However, high leverage and declining revenue remain significant risks. The stock exhibits bullish technical momentum, but valuation concerns and caution from the earnings call due to tariff uncertainties and guidance withdrawal temper the outlook.

Positive Factors

Brand Performance

The strength of Saucony and Merrell brands, with significant sales increases, contributes positively to the company's outlook.

Earnings and Price Targets

The U.S-China agreement to reduce tariffs on Chinese imports from 145% to 30% for 90 days has led to increased estimates and price targets for the stock.

Operational Efficiency

WWW's inventory levels are cleaner and the content has improved, indicating better operational efficiency.

Negative Factors

Merrell Brand Strategy

Merrell's allocation and distribution strategy still leaves much to be desired.

Revenue Guidance

FY25 revenue guidance was disappointing; The high end of revenue guidance was 1.8% below consensus estimates.

Uncertain Future Demand

The decision to withdraw FY25 guidance is prudent, as tariff driven uncertainty makes future demand difficult to measure.

Wolverine World Wide Business Overview & Revenue Model

Company Description

Wolverine 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 Money

Wolverine World Wide generates revenue primarily through the sale of its footwear, apparel, and accessories across multiple channels, including wholesale, direct-to-consumer, and licensing. The company's wholesale operations involve selling products to various retailers, department stores, and specialty stores globally. Its direct-to-consumer operations include e-commerce platforms and branded retail stores, enabling direct engagement with customers. Additionally, Wolverine World Wide earns revenue through licensing agreements, allowing other companies to produce and sell products under its brand names. Partnerships with retailers and strategic acquisitions also play a significant role in expanding its market presence and boosting its earnings.

Wolverine World Wide Financial Statement Overview

Summary

Wolverine World Wide shows improving profitability with recent net income and margin improvements. However, high leverage and declining revenue pose risks. The company’s strong cash flow generation provides a positive outlook, but the balance sheet's leverage is a concern that needs monitoring.

Income Statement

The gross profit margin has remained relatively stable with a slight improvement in the TTM period at 44.2%. The net profit margin improved to 4.1% in TTM from a loss position previously, indicating better cost management. Revenue growth has been negative over the last few periods, showing a decline from 2022 levels. However, the improvement in EBIT and EBITDA margins in TTM suggests operational efficiency gains.

Balance Sheet

The debt-to-equity ratio remains high at 2.77 in TTM, indicating significant leverage. Return on equity improved to 23.66% in TTM, driven by better net income. The equity ratio is low at 18.44%, reflecting a highly leveraged balance sheet with substantial liabilities relative to equity.

Cash Flow

Free cash flow has shown a positive trend with a growth rate of 2.39% in TTM. The operating cash flow to net income ratio is robust at 1.82, indicating strong cash generation relative to net earnings. The free cash flow to net income ratio of 1.51 further supports solid cash flow performance.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.77B	1.75B	2.24B	2.68B	2.41B	1.79B
Gross Profit	784.10M	781.50M	872.50M	1.07B	1.03B	735.60M
EBITDA	164.40M	130.50M	-46.20M	-137.30M	207.30M	-96.60M
Net Income	73.50M	47.90M	-39.60M	-189.10M	68.60M	-138.60M
Balance Sheet
Total Assets	1.68B	1.67B	2.06B	2.49B	2.59B	2.14B
Cash, Cash Equivalents and Short-Term Investments	106.50M	152.10M	179.00M	131.50M	161.70M	347.40M
Total Debt	860.10M	797.70M	1.09B	1.35B	1.12B	886.80M
Total Liabilities	1.36B	1.35B	1.76B	2.15B	1.94B	1.56B
Stockholders Equity	310.60M	307.30M	278.60M	339.00M	644.40M	573.00M
Cash Flow
Free Cash Flow	110.80M	159.90M	107.20M	-215.40M	69.20M	298.80M
Operating Cash Flow	133.50M	180.10M	121.80M	-178.90M	86.80M	309.10M
Investing Cash Flow	-6.50M	86.80M	171.60M	54.60M	-437.30M	6.10M
Financing Cash Flow	-185.70M	-299.20M	-246.30M	107.10M	169.30M	-154.00M

Wolverine World Wide Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WWW, the sentiment is Positive. The current price of 18.53 is above the 20-day moving average (MA) of 17.65, above the 50-day MA of 15.94, and above the 200-day MA of 17.55, indicating a bullish trend. The MACD of 0.49 indicates Positive momentum. The RSI at 62.11 is Neutral, neither overbought nor oversold. The STOCH value of 82.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WWW.

Wolverine World Wide Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CROX	77 Outperform	$5.78B	6.31	53.70%	―	2.09%	26.18%
SHOO	74 Outperform	$1.78B	10.59	19.51%	3.42%	10.17%	-4.71%
RCKY	71 Outperform	$166.76M	12.17	5.97%	2.77%	-2.01%	2.08%
WEYS	70 Outperform	$323.57M	11.13	11.76%	3.20%	-5.46%	-1.09%
WWW	68 Neutral	$1.50B	20.90	25.29%	2.16%	-13.05%	―
CAL	66 Neutral	$423.81M	5.24	13.67%	2.23%	-4.84%	-49.08%
Sector *	56 Neutral	HK$23.98B	4.08	-1.57%	6.81%	0.06%	-64.88%

Wolverine World Wide Corporate Events

Wolverine World Wide Shareholders Meeting Results Announced

On May 1, 2025, Wolverine World Wide held its Annual Meeting of Shareholders where four proposals were voted on. The shareholders elected two directors for terms expiring in 2028, approved executive compensation, ratified Ernst & Young LLP as the independent auditor for fiscal year 2025, and rejected a proposal on greenhouse gas emissions disclosures and targets.