WWW - Wolverine World Wide: Sales Improvements Need To Start Showing Soon

2024-06-25 14:00:00 ET

Summary

• Wolverine World Wide has divested the Sperry brand and signed a new licensing partnership, progressing on the company's strategic turnaround.
• Despite impressively implemented cost control measures, EPS has continued to decline as WWW's brands have continued to show incredibly weak sales.
• The company's sales turnaround is progressing with new product launches and marketing campaigns, especially for Saucony, and WWW expects sales to gradually stabilize in FY2024.
• The valuation seems balanced, but highly leveraged by continued high debt and the incredibly volatile sales outlook as the sales turnaround could still well fail.

Wolverine World Wide, Inc. ( WWW ) has progressed on the company's plans for an operative turnaround. The company divested the Sperry brand in January and more recently signed a new licensing partnership. Also, the previously communicated cost control has now been increasingly implemented cutting costs. Still, investors need to be cautious around the turnaround's success as Wolverine's brands still show incredibly weak sales in Q1....

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