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Investing.com - Williams Trading raised its price target on Wolverine World Wide (NYSE:WWW) to $25.00 from $21.00 while maintaining a Buy rating, citing increasing momentum within the company’s Active Group, particularly from Saucony and Merrell brands. The stock, currently trading at $21.80 with a market capitalization of $1.77 billion, has shown remarkable strength with a 54% gain over the past year. According to InvestingPro analysis, the stock’s RSI suggests it’s currently in overbought territory.
The research firm revised its fiscal year 2025 estimates above the FY25 guidance that Wolverine withdrew when it released first-quarter earnings in May. Williams Trading now expects FY25 Saucony revenue to increase 20.6%, exceeding the original low-double-digit growth guidance, while Merrell revenue is projected to grow 7.8%, surpassing the initial low-single-digit guidance. The company has maintained dividend payments for 38 consecutive years, demonstrating long-term financial stability.
In the first quarter of 2025, Merrell and Saucony had combined revenues representing 68% of total Wolverine World Wide revenue, an increase of 900 basis points from the same period in 2024. The research firm projects these two brands will account for 61.6% of total company revenue in fiscal year 2025.
Williams Trading noted that Wolverine is transitioning to a pull model for both Merrell and Saucony brands more quickly than previously anticipated, which is driving the improved outlook. The strength in these active brands is expected to more than offset weaker sales trends in Sweaty Betty and the Work Group compared to original guidance.
The firm also highlighted potential growth opportunities for Saucony through the introduction of an apparel line, while suggesting management needs to make decisions regarding how to proceed with the Sweaty Betty brand. With the next earnings report scheduled for August 6, 2025, investors can access comprehensive analysis and 12 additional exclusive insights through InvestingPro’s detailed research report, part of its coverage of over 1,400 US stocks.
In other recent news, Wolverine World Wide has reported first-quarter earnings and revenue for 2025 that exceeded expectations, with notable performances from its Saucony and Merrell brands. Saucony saw a sales increase of 29.6%, while Merrell’s sales grew by 13.2%, contributing to an overall revenue rise of 5.5%. Analysts from UBS, Argus, and Williams Trading have all expressed optimism about Wolverine’s future, with UBS raising its price target to $22 and maintaining a Buy rating, citing the company’s effective turnaround strategy and investment in its Active brands. Argus has also upgraded Wolverine’s stock rating to Buy, setting a price target of $20, due to the company’s successful sales initiatives and broader turnaround plans. Williams Trading, meanwhile, increased its price target to $21, noting the positive impact of a recent U.S.-China tariff reduction on the company’s outlook. Additionally, Wolverine World Wide has appointed Cheryl Abel-Hodges and Jack Boyle to its Board of Directors, effective July 1, 2025, bringing extensive retail experience to the company. These developments reflect Wolverine’s ongoing efforts to strengthen its market position and financial performance.
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