Wolverine's (WWW) Q2 Revenue Outlook Upbeat on Brand Strength
Zacks Investment Research | Jun 08, 2021 01:06AM ET
Wolverine World Wide (NYSE:WWW), Inc. WWW has been benefiting from strength in its digital platforms and brands as well as innovative product offerings for sometime now. In latest developments, the company provided updates on key metrics for second-quarter 2021. Management highlighted that the company’s performance improved in the said quarter on progress in its largest brands and product innovation.
Wolverine further stated that it is continuously experiencing momentum and stronger-than-expected trends across roughly all its brands with Merrell, Saucony and Sperry leading the way. Also, order book has been improving since the end of the previous quarter with impressive gains in the company’s international business.
As a result, management currently anticipates second-quarter 2021 revenues to surpass the 2019 actuals. We note that Wolverine had generated revenues worth $568.6 million during the June quarter of 2019. The company also reaffirmed full-year revenue guidance of $2,240-$2,300 million, indicating growth of 25-28% from last year’s reported levels. Moreover, this view assumes no significant deterioration of market conditions with respect to the pandemic.
On its last earnings call, management had envisioned adjusted earnings per share in the band of $1.95-$2.10 for the current year. This outlook suggests meaningful growth from adjusted earnings per share of 93 cents (95 cents in constant currency) delivered in 2020.h3 What’s More?/h3
Wolverine’s e-commerce channel is its consistent key sales catalyst. The company is leveraging its digital capabilities to expedite information and product flow apart from strengthening the distribution centers. Notably, its e-commerce business grew 83.6% in the first quarter of 2021, buoyed by gains from its global digital strategy. Also, the company's direct-to-consumer channels are displaying continued progress.
The company capitalized on higher digital marketing investments to boost traffic and digital content as well as focus on better merchandising to optimize conversion. Management cited that it expects to integrate and launch various innovative technologies including a Merrell mobile app in the next few months. Encouragingly, the company targets achieving $500 million in digital revenues during 2021.
Coming to its brand performance, apart from Saucony and Merrell witnessing growth across all regions in the first quarter, its work business registered significant increases, led by Wolverine and Cat footwear. Also, the company’s work boot category appears impressive. Going forward, management is committed toward product innovations and introductions across its brand portfolio.
Get The News You Want
Despite a tough operating landscape, management believes that it is well positioned on the back of its business tailwinds and strategic initiatives. Incidentally, shares of this presently Zacks Rank #3 (Hold) have increased 10.2% over the past six months against the Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.