Wolverine World Wide (WWW) Is Up 5.2% After Record Margins And Guidance Hike Has The Bull Case Changed?

• In its latest reported quarter, Wolverine World Wide generated US$470.3 million in revenue, up 6.9% year on year, with Merrell, Saucony and Sweaty Betty all beating expectations and delivering a record gross margin performance.
• The company also raised its full-year guidance more than any other footwear peer, highlighting stronger-than-expected momentum across its core brands and operations.
• Next, we’ll examine how this record gross margin quarter and upgraded guidance might influence Wolverine World Wide’s investment narrative.

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Wolverine World Wide Investment Narrative Recap

To own Wolverine World Wide, you need to believe its core performance brands can compound value through healthier margins, stronger digital engagement, and more balanced channels over time. The record gross margin quarter and raised guidance support that thesis in the near term, but the stock’s pullback is a reminder that heavy wholesale exposure and potential growth normalization remain important short term watchpoints rather than fully resolved risks.

The most relevant announcement here is the upgraded full year 2025 outlook to US$1.855–US$1.87 billion in revenue and US$1.08–US$1.13 in EPS. That uplift, driven largely by Merrell and Saucony momentum, reinforces earnings quality as a key catalyst, yet it also raises the bar for future quarters if wholesale demand softens or distribution led growth slows.

Yet, behind the strong guidance raise, the risk tied to Wolverine’s 75% reliance on wholesale distribution is something investors should be aware of...

Read the full narrative on Wolverine World Wide (it's free!)

Wolverine World Wide's narrative projects $2.2 billion revenue and $189.9 million earnings by 2028. This requires 6.3% yearly revenue growth and about a $106 million earnings increase from $83.9 million today.

Uncover how Wolverine World Wide's forecasts yield a $24.33 fair value, a 33% upside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community range widely from US$9 to over US$28,105, underlining just how far apart individual views can be. Against that backdrop, the recent record gross margin quarter and guidance upgrade give you concrete operating data to weigh alongside these diverse expectations when thinking about Wolverine’s potential performance.

Explore 6 other fair value estimates on Wolverine World Wide - why the stock might be a potential multi-bagger!

Build Your Own Wolverine World Wide Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Wolverine World Wide research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Wolverine World Wide research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Wolverine World Wide's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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