Wolverine Worldwide Stock Goes on A Run Thanks To Saucony & Merrell

Shares in Wolverine Worldwide (WWW) soared yesterday as the Michigan based footwear company beat analyst expectations for Q3 2024 thanks to stronger sales of Saucony & Merrell.

As challenging as the whole sneaker retail landscape is at the moment, if you’ve got brands like Saucony & Merrell in your arsenal, it might make things that little bit easier. Saucony for one have seen a big resurgence in recent years, tapping into the whole technical running trend as marathons have become more like a catwalk of expensive running trainers, tattoos & Italian pastries for the modern day “urbanites”. Shares in Wolverine Worldwide (WWW), owner of Saucony, soared yesterday as Q3 2024 sales beat not only analyst expectation but also their own. Total revenue for the quarter was $440 million which was down 16.6% from $528 million compared to the same period last year. Even though there was a decrease from last year, the results still beat analyst expectations of sales between $418.6 million & $423.8 million.

 

 

The technical trail shoe brand, Merrell, led the way with its on trend outdoors silhouettes with a 1.4% increase in sales, $159.2 million compared to $157 for the same period last year. Saucony sales did however take a slip at 10%, $104.8 million compared to $116.4 million for the same period last year. Wolverine’s international revenue was down 6.6% to $213.8 million compared to the same period last year and its direct-to-consumer revenue was also down 17.7% to $112.4 million.

Wolverine Worldwide raised its guidance for full fiscal 2024 and expects a total revenue now of between $1.73 billion to $1.74 billion compared to the previous guidance of $1.71 billion to $1.73 billion. Diluted earnings per share for the year are now expected to be in the range of $0.56 to $0.66 cents and adjusted diluted earnings per share in the range of $0.80 cents to $0.90 cents. This is comparative to the previous outlook for Wolverine Worldwide’s diluted earnings per share in the range of $0.53 cents to $0.63 cents and adjusted diluted EPS between $0.75 cents and $0.85 cents.

In the third quarter, we delivered better-than-expected revenue and earnings led by Merrell and Saucony outpacing our forecast as we continue to make progress on our plan to turnaround and transform the company for the future. We drove another quarter of record gross margin and more than doubled earnings versus last year. Moving forward with a stronger platform for growth with a rationalized portfolio of authentic brands positioned in attractive categories, a much healthier balance sheet with our restructuring and stabilization efforts largely behind us, and finally, a talented, aligned, and motivated team driving the business each day.

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