Wolverine World Wide (WWW – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Sam Poser from Williams Trading remains neutral on the stock and has a $7.00 price target.
Sam Poser has given Wolverine World Wide (WWW) a Sell rating due to a variety of concerns, despite some positive developments in the company’s financials. While fourth-quarter sales and margins met expectations, and inventory and net debt were reduced more than anticipated, these factors were not enough to alleviate the underlying issues. The sale of Sperry to Authentic Brands Group and the ALDO Group for $130 million is seen as a beneficial step for reducing debt, but it does not address the fundamental challenges facing the company’s core brands and operations.
The central issue for WWW is the difficulty in revitalizing the Merrell and Saucony brands and stabilizing its Work businesses. Poser argues that while reducing debt is critical, WWW must prioritize brand integrity and appeal to ensure long-term viability. This necessitates a substantial decrease in sales for the fiscal year 2024 to rebuild brand strength, which is a risky strategy that could impact revenues. Furthermore, since the loss of Merrell’s leadership in 2007, the brand has struggled to maintain its unique appeal, and overall, the company’s performance has been lackluster since the acquisition of the PLG Group. With only Saucony showing potential amidst declining revenues and a slim EBIT margin, Poser remains skeptical about WWW’s ability to effectively turn around its business.
According to TipRanks, Poser is a 5-star analyst with an average return of 18.0% and a 54.47% success rate. Poser covers the Consumer Cyclical sector, focusing on stocks such as Dick’s Sporting Goods, Hibbett Sports, and Nike.
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Wolverine World Wide (WWW) Company Description:
Wolverine World Wide, Inc. engages in the design, manufacture and sale of branded casual, active lifestyle, work, outdoor sport, athletic, children’s and uniform footwear and apparel. It operates through the following segments: Wolverine Michigan Group and Wolverine Boston Group. The Wolverine Michigan Group consists of Merrell footwear and apparel, Cat footwear, Wolverine footwear and apparel, Chaco footwear, Hush Puppies footwear and apparel, Bates uniform footwear, Harley-Davidson footwear and Hytest safety footwear. The Wolverine Boston Group consists of Sperry footwear and apparel, Saucony footwear and apparel, Keds footwear and apparel, and the Kids footwear business, which includes the Stride Rite licensed business, as well as kids’ footwear offerings from Saucony, Sperry, Keds, Merrell, Hush Puppies and Cat. The company was founded by G. A. Krause in 1883 and is headquartered in Rockford, MI.
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