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Investing.com - Stifel has raised its price target on Wolverine World Wide (NYSE:WWW) to $30.00 from $25.00 while maintaining a Buy rating following the company’s strong second-quarter performance. According to InvestingPro data, the stock has shown remarkable momentum with a 74% return over the past year, and 4 analysts have recently revised their earnings estimates upward for the upcoming period.
The footwear company exceeded expectations with a $28 million revenue beat and adjusted earnings per share that came in $0.12 above Stifel’s estimates. The firm noted that Wolverine’s guidance for the third quarter of $450-$460 million in revenue and $0.28-$0.32 in adjusted EPS appears conservative and may have room for upside. The company maintains strong fundamentals with a gross profit margin of 44.85% and has consistently paid dividends for 38 consecutive years, as highlighted in InvestingPro’s comprehensive analysis.
Key brands in Wolverine’s portfolio are showing significant strength, with Saucony, representing 23% of fiscal year 2024 revenue, growing 40% year-over-year on a constant currency basis. Merrell, which accounts for 34% of FY24 revenue, increased 9% year-over-year with market share gains and improving trends in the outdoor footwear market. These results contribute to the company’s solid financial health score of "GOOD" according to InvestingPro’s comprehensive evaluation system, which analyzes multiple financial metrics and growth indicators.
Gross margin performance is exceeding the company’s aspirational model of 45-47%, which Stifel believes provides cushion against potential tariff impacts. The firm views current estimates as likely to trend higher based on these results.
Stifel projects that Wolverine’s fiscal year 2027 earnings could reach $2 per share, based on $2.1 billion in revenue and low double-digit adjusted EBIT margins, supporting potential share price movement into the mid-$30s range.
In other recent news, Wolverine World Wide Inc . reported impressive second-quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.35, significantly outpacing the forecasted $0.23, which represents a 52.17% positive surprise. Revenue also exceeded projections, reaching $474 million compared to the anticipated $444 million. These results highlight Wolverine’s strong financial performance and operational efficiency. The company’s ability to outperform expectations may draw attention from investors and analysts alike. Although specific analyst upgrades or downgrades were not mentioned, the earnings beat could influence future evaluations. These developments underscore Wolverine’s recent success in navigating market challenges.
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