Latest news with #WolverineWorldWide
Yahoo
6 days ago
- Business
- Yahoo
This Stock's Unusually Active Options Should Have Investors Running to Buy
I'm obsessed with sports-related stocks. Always have been. I've followed Nike (NKE) for several decades. There's no business I won't watch if it's even remotely involved in sports & leisure pursuits. It's been a while since I've covered a sports-related stock. The last was in late May with Amer Sports (AS) and On Holding (ONON). Before that, it was probably in January. It doesn't happen often. Learn How This Options Strategy Generates Income and Limits Losses Zeta Global (ZETA) Attracts Bullish Traders as AI Marketing Gains Traction GS Iron Condor Could See a 33% Return in 3 Weeks Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. So, today, as I considered a subject for my commentary, Wolverine World Wide (WWW), the Michigan-based maker of Saucony running shoes and Merrill hiking shoes, among others, stood out like a sore thumb. Yesterday, it had two unusually active call options, resulting in above-average options volume of 6,707, nearly three times its 30-day average. WWW first started transforming its business in 2022 by announcing its intention to divest brands such as Keds and its Wolverine Leathers business. It sold the former in February 2023 and the latter a few months later in August 2023. Other brands sold included Sperry business, which was sold in January 2024. Focusing on Saucony and Merrill, the transformation continues, with significant progress being made. With its shares down 17% in the past five years, a floor price appears to have been set around $10 or $11, so the downside isn't significant for making a bet on the lifestyle company. Here's why yesterday's two unusually active call options make sense. As I said, WWW had two unusually active call options in Wednesday trading (see below). Both have a decent amount of time for the bet to play out. Neither is excessively expensive. I prefer one over the other. I'll get to the reasons why in a bit. In the meantime, I'll consider the state of the business. The company reported Q1 2025 results in early May. Overall, sales increased by 5.5% compared to last year. Excluding currency, they rose by 6.7%. More importantly, its Active Group, which includes Saucony, Merrill, Sweaty Betty, and Chaco brands, generated 71% of its revenue in 2024 and saw sales rise by nearly 14% in the first quarter, excluding the impact of currency fluctuations. Almost all of the Active Group's gains were from Saucony (up 31.3%) and Merrill (up 14.4%). From this perspective, the move to focus on the two brands looks to be paying dividends for Wolverine. Further, the company's profitability in the quarter was much better than a year ago. Its adjusted gross margin of 47.3% was 80 basis points higher than in the first quarter of 2024. Its adjusted operating margin was 6.0%, 100 basis points higher. As a result of the margin improvements, its earnings per share increased by 260% to $0.18 from $0.05. 'Merrell and Saucony fueled our growth with double-digit revenue increases, and we more than tripled our earnings year-over-year, again delivering a record gross margin performance. We've worked to reinvent Wolverine Worldwide for the future–focusing squarely on awesome product, amazing stories, and driving the business,' stated CEO Chris Hufnagel in the company's Q1 2025 press release. How does the quarter stack up against previous first quarters? In terms of margins, reasonably well. Its 47.3% gross margin in Q1 2025 was the highest over the past decade, according to S&P Global Market Intelligence. However, its EBIT margin in this year's first quarter was 6.1%, which is better than it has been in recent years, but down from 11.5% in Q1 2018 and 11.0% in Q1 2021. The headwinds faced, stemming from a shaky consumer and potential tariffs—since it manufactures most of its products through third parties in the Asia Pacific region—suggest that achieving double-digit EBIT margins may not be feasible in the near term. So, Wolverine's valuation is somewhat hamstrung in terms of multiple expansion along with higher profits. According to Barchart data, nine analysts are covering WWW stock. Of those, all but one rate it a Strong Buy (4.78 out of 5), with a mean target price of $20.55, which is higher than its current trading price. In 2025, analysts expect the company to earn $1.05 per share and $1.28 in 2026. It trades at 17.1 times its 2025 estimate and 14.0 times its 2026 estimate. Over the past decade, its forward EPS multiple has ranged from a low of 7.56 times in Q4 2022 to a high of 19.49 times in Q1 2021. So, it's neither cheap nor expensive, which suggests the analysts see the company continuing to improve profitability, leading to a higher multiple in the future. Remember, one of its best first quarters in the past decade for EBIT margin was in 2021, when WWW stock was trading at almost 20 times forward EPS. If it doubles its EBIT margins in 2026, it will surely be a $30 stock by then, perhaps even higher. It traded in the mid-$40s in May 2021. It can get there again. Betting on Wolverine isn't a slam dunk by any means. The tariff question remains a significant uncertainty for the entire global apparel and footwear industry. It's impossible to know if the White House will ever solidify its trade plans for long enough so companies can make long-term plans. That said, I think there's enough meat on the bone to suggest that Wolverine is on the upside of resolving its past business issues, making it an attractive value play for risk-tolerant investors. Which brings me back to the two unusually active call options from yesterday. While the Sept. 19 $20 call is cheaper with a $1.15 ask price, the Dec. 19 $22.50 call has twice the days to expiration, for only $5 more. Sure, it's further OTM (out of the money)—20.7% compared to 10.8% for the $20 call—but the additional time makes it worthwhile. In the end, whether you bet on the $22.50 or $20 call, the worst-case scenario is that you lose $120. I like the risk/reward proposition here. On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
7 days ago
- Business
- Yahoo
Decoding NIKE's High P/E Ratio: Bargain Buy or Overpriced Risk?
NIKE Inc. NKE remains fundamentally strong, backed by its decisive actions to reposition itself for sustainable and profitable long-term growth. However, the company's current forward 12-month price-to-earnings (P/E) multiple of 31.58X raises concerns about whether the stock's valuation is justified. This multiple is higher than the Zacks Shoes and Retail Apparel industry average of 24.76X, making the stock appear relatively high price-to-sales (P/S) ratio of NIKE, a Beaverton, OR-based global leader in athletic footwear, apparel, equipment and sports-related accessories, adds to investor unease, especially considering its low Value Score of D, which suggests that it may not be a strong value proposition at current levels. The company has a forward 12-month P/S ratio of 2X compared with the industry's 1.74X. Image Source: Zacks Investment Research At 31.58X P/E, the Swoosh brand owner is trading at a much higher valuation than its competitors. Its competitors, such as adidas ADDYY, Skechers SKX and Wolverine World Wide WWW, are delivering solid growth and trade at more reasonable multiples. adidas, Skechers and Wolverine have forward 12-month P/E ratios of 22.16X, 16.82X and 14.89X — all significantly lower than NIKE. At such levels, NKE's valuation seems out of step with its growth trajectory, especially given the recent decline in its stock stock's elevated valuation reflects high investor expectations for growth. However, compared with the above-mentioned competitors, NIKE looks increasingly vulnerable in an environment wherein market participants are growing cautious about overpriced Consumer Discretionary stocks. NKE's ability to meet or exceed these lofty expectations is crucial in justifying its premium shares have witnessed a remarkable slowdown since the start of 2024, driven by operational challenges, highlighted by sluggish lifestyle segment sales, issues in Greater China and reduced digital sales. NKE shares have slumped 18.9% in the year-to-date period, almost similar to the broader industry's 18.5% decline. The stock has underperformed the Consumer Discretionary sector's rally of 8.1% and the S&P 500's growth of 2.8% in the same performance is notably weaker than that of its competitors, adidas and Skechers, which have declined 4.9% and 6.6%, respectively, in the year-to-date period. However, NIKE outperformed Wolverine's decline of 22.1% in the same period. Image Source: Zacks Investment Research At the current price of $61.42, the NKE stock trades 35.2% below its 52-week high of $94.74. The current stock price is 17.5% above its 52-week low mark of $52.28. NKE trades below its 200-day moving average, indicating a bearish sentiment. Image Source: Zacks Investment Research Investors are growing increasingly cautious about NIKE's performance as the company struggles with persistent weakness in its core lifestyle segment. Sales of iconic footwear lines such as the Air Force 1, Dunk and Jordan 1 have declined more sharply than the overall business, signaling a broader shift in consumer preferences and a potential erosion of brand NIKE is working to reinvigorate these franchises through NIKE Digital and new product designs, the recovery has been slow, and the initiatives are yet to offset the ongoing declines. These necessary but disruptive adjustments are creating short-term pressure, with third-quarter fiscal 2025 revenues down 9% year-over-year on a reported basis, raising questions about portfolio stability and brand NIKE's Greater China segment, once a key engine of growth, has turned into a significant drag. In third-quarter fiscal 2025, reported revenues from the region dropped 17% year over year, weighed down by macroeconomic softness, intensifying domestic competition and a heavily promotional retail environment. Both major channels, NIKE Direct and Wholesale, recorded declines of 11% and 18%, ongoing investments in grassroots sports initiatives and innovation, the short-term picture remains difficult, with the fiscal fourth-quarter revenues expected to drop more than 22%, compounding concerns about the company's ability to sustain growth across key international to the bearish sentiment is a downbeat fourth-quarter fiscal 2025 outlook, with management guiding a mid-teen percentage decline in revenues. The dip is expected to be led by shipment timing issues in North America, adverse currency movements, and the anticipated impacts of new tariffs on Chinese and Mexican also expects a significant 400-500-basis-point contraction in the gross margin, reflecting restructuring costs and persistent pricing pressure. Although the company is actively managing expenses, SG&A costs are forecast to rise in the low to mid-single digits, squeezing operating profitability. Coupled with geopolitical tensions, currency volatility and softening consumer demand, these headwinds have deepened investor skepticism about NIKE's near-term earnings visibility and its ability to navigate a rapidly evolving competitive landscape. The Zacks Consensus Estimate for NKE's fiscal 2025 earnings per share has shown an uptrend in the past seven days, rising by a penny. The consensus mark for fiscal 2026 moved up by a penny in the last seven fiscal 2025, the Zacks Consensus Estimate for NKE's sales and EPS implies 10.7% and 45.8% year-over-year declines, respectively. The consensus mark for fiscal 2026 sales and earnings indicates 1.3% and 12.1% year-over-year growth, respectively. (See the Zacks Earnings Calendar to stay ahead of market-making news.) Image Source: Zacks Investment Research NIKE's premium valuation, coupled with decelerating growth, raises valid concerns for investors. The company's cautious guidance offers limited visibility into its recovery trajectory, particularly amid persistent headwinds in its lifestyle product segment and ongoing pressures in Greater China. These uncertainties make it difficult to assess the timing and strength of a potential rebound. As a result, a cautious stance is shareholders may choose to liquidate positions, while prospective investors may prefer to wait for clearer signs of stabilization before committing to this Zacks Rank #5 (Strong Sell) can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIKE, Inc. (NKE) : Free Stock Analysis Report Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report Wolverine World Wide, Inc. (WWW) : Free Stock Analysis Report Adidas AG (ADDYY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-06-2025
- Business
- Yahoo
Authentic brings Sperry back to UK and Ireland
This story was originally published on Fashion Dive. To receive daily news and insights, subscribe to our free daily Fashion Dive newsletter. Authentic Brands Group signed a new deal with Gardiner Bros to reintroduce the Sperry brand to the U.K. and Ireland, according to a Tuesday release. Under the agreement, Gardiner Bros will serve as the official distributor of Sperry footwear for men and women. This is Sperry's first licensee in the U.K. and Ireland since Authentic's acquisition of the brand in 2024, according to a spokesperson. Also Tuesday, Authentic announced the appointment of former Amazon exec Tim Derner as global head of its marketplaces division. Dener was most recently director of Amazon Fashion and Luxury Stores. Sperry's previous parent company, Wolverine World Wide, distributed the brand in the U.K. and Ireland through a deal with Fabulous Footwear. The Sperry brand has longstanding market appeal in the region, and the deal with Gardiner Bros brings Sperry back to a market where it holds 'strong awareness and affinity,' Authentic said in the release. In addition, Ben Gardiner, chief product officer at Gardiner Bros, said boat shoes 'are having a real resurgence.' The move builds on Authentic's continuing global expansion. In May, the company announced that it would bring its Rockport brand to the U.K. and Ireland through a men's and women's footwear distribution deal with Chapters Brand Group. The company also extended its Boardriders Japan license in June and announced a South Africa partnership for its Ted Baker brand in December. Last year, Authentic hired its first general manager for Africa. The company also brought in its first Australia-based employee to be the new head of Australia and New Zealand. Meanwhile, Derner, who started his role on June 2, is expected to help push Authentic's global distribution strategy, particularly in terms of 'strengthening partnerships, accelerating brand reach and driving incremental value across platforms,' per the release. While at Amazon, he worked with Authentic to 'significantly expand the online presence and retail sales' of brands including Reebok, Brooks Brothers, Eddie Bauer and Aéropostale in Amazon stores. In his new role, Derner will report to newly appointed president Matt Maddox. 'Marketplaces are a critical engine for long-term brand growth,' said Maddox. 'Tim's track record of building high-performing teams and scaling digital marketplaces worldwide makes him the ideal leader to deepen our capabilities in this space. His appointment marks a significant step in making this channel a cornerstone of our global distribution strategy.' Derner's former employer Amazon was one of the investors, alongside Authentic, in the January acquisition of the Neiman Marcus Group by Saks Global, parent company of Saks Fifth Avenue. Authentic also launched a joint venture with Saks Global in October 2024 called Authentic Luxury Group, which was created to explore licensing opportunities and drive growth for Saks Global as well as Authentic-owned brands including Barneys New York, Judith Leiber, Hervé Léger and Vince. Recommended Reading Rebag joins forces with Luxury Stores at Amazon Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-06-2025
- Business
- Yahoo
Wolverine Worldwide Earns Great Place To Work Certification™
ROCKFORD, Mich., June 17, 2025--(BUSINESS WIRE)--Wolverine World Wide, Inc. (NYSE: WWW) today announced it is a Great Place To Work® Certified™ company, underscoring its commitment to prioritizing employee experience and cultivating an amazing company culture across its U.S. operations. This year 88% of U.S.-based Wolverine Worldwide employees said the Company is a great workplace, 33 percentage points higher than the average company. The Great Place To Work Certification distinguishes employers that prioritize employee experience, based on employees' survey feedback on trust, camaraderie, and appreciation in the workplace. "Being a Certified great workplace is a testament to the culture we've built together at Wolverine Worldwide," said Chris Hufnagel, President and Chief Executive Officer of Wolverine Worldwide. "This recognition validates the amazing spirit of our team – a team that's committed to fulfill our vision to Make. Every Day. Better. and to create not just a great place to work, but a place where people can grow, lead, and leave a lasting impact." Wolverine Worldwide scored particularly higher than the industry average in team, camaraderie, hospitality and justice categories: 91% of respondents believe management promotes inclusive behavior, avoids discrimination, and is committed to fair treatment of its employees. 87% of respondents have a sense of enjoyment in the workplace thanks to a hospitable work environment, freedom to express themselves, and sense of community among team members. 87% of respondents feel a sense of pride in their team's accomplishments and are willing to give extra for the benefit of their team. "By successfully earning this recognition, it is evident that Wolverine Worldwide stands out as one of the top companies to work for, providing a great workplace environment for its employees," said Sarah Lewis-Kulin, the Vice President of Global Recognition at Great Place To Work. Being Certified by Great Places to Work comes on the heels of Wolverine Worldwide being recognized by Forbes as one of America's Dream Employers and America's Best Midsize Employers, and by Inspiring Workplaces as one of the Most Inspiring Workplaces in North America. These achievements are credited to Wolverine Worldwide's prioritization of creating great workspaces and launching employee resource groups (ERGs) to foster connectivity among team members. Since 2023, Wolverine Worldwide has upgraded its global workspaces to attract and retain top-tier talent, including: Renovating 40,000-square feet at its global headquarters in Rockford, MI, to create a new headquarters for its Merrell and Saucony brands (May 2025) Opening a new 11,000-square-foot Innovation Hub in Boston, MA (November 2024) Opening new Office Space in Zhuhai, China (October 2024) Opening new Office Space in Hong Kong (September 2024) Renovating its European Headquarters in King's Place, London (June 2023) On-site amenities offered at its global headquarters include subsidized daycare and early education center for children, fitness centers including personal training and group classes taught by certified personal trainers, hiking and nature trails, subsidized cafeteria, and dog daycare options. In 2024, Wolverine Worldwide launched ERGs to connect team members centered around a shared interest. The voluntary, employee-led groups promote inclusivity, build community, and provide personal and professional support to its members. Current ERGs include: PRIDE, Wolverine Military and Veterans, Wolverine United, Wolverine Young Professionals, Womxn's Resource Community, and Working Moms. For more information on careers at Wolverine Worldwide, visit: ABOUT WOLVERINE WORLDWIDE Founded in 1883, Wolverine World Wide, Inc. (NYSE:WWW) is one of the world's leading designers, marketers, and licensors of branded casual footwear and apparel, performance outdoor and athletic footwear and apparel, kids' footwear, industrial work boots and apparel, and uniform footwear. The Company's portfolio includes Merrell®, Saucony®, Sweaty Betty®, Hush Puppies™, Wolverine®, Chaco®, Bates®, HYTEST®, and Stride Rite®. Wolverine Worldwide is also the global footwear licensee of the popular brands Cat® and Harley-Davidson®. Based in Rockford, Michigan, for more than 140 years, the Company's products are carried by leading retailers in the U.S. and globally in approximately 170 countries and territories. For additional information, please visit our website, ABOUT GREAT PLACE TO WORK CERTIFICATION™ Great Place To Work® Certification™ is the most definitive "employer-of-choice" recognition that companies aspire to achieve. It is the only recognition based entirely on what employees report about their workplace experience – specifically, how consistently they experience a high-trust workplace. Great Place to Work Certification is recognized worldwide by employees and employers alike and is the global benchmark for identifying and recognizing outstanding employee experience. Every year, more than 10,000 companies across 60 countries apply to get Great Place To Work-Certified. ABOUT GREAT PLACE TO WORK® As the global authority on workplace culture, Great Place To Work® brings 30 years of groundbreaking research and data to help every place become a great place to work for all. Their proprietary platform and For All™ Model helps companies evaluate the experience of every employee, with exemplary workplaces becoming Great Place To Work Certified™ or receiving recognition on a coveted Best Workplaces™ List. View source version on Contacts Emma Wach, (630) 390-8474 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
17-06-2025
- Business
- Business Wire
Wolverine Worldwide Earns Great Place To Work Certification™
BUSINESS WIRE)-- Wolverine World Wide, Inc. (NYSE: WWW) today announced it is a Great Place To Work® Certified™ company, underscoring its commitment to prioritizing employee experience and cultivating an amazing company culture across its U.S. operations. This year 88% of U.S.-based Wolverine Worldwide employees said the Company is a great workplace, 33 percentage points higher than the average company. The Great Place To Work Certification distinguishes employers that prioritize employee experience, based on employees' survey feedback on trust, camaraderie, and appreciation in the workplace. 'Being a Certified great workplace is a testament to the culture we've built together at Wolverine Worldwide,' said Chris Hufnagel, President and Chief Executive Officer of Wolverine Worldwide. 'This recognition validates the amazing spirit of our team – a team that's committed to fulfill our vision to Make. Every Day. Better. and to create not just a great place to work, but a place where people can grow, lead, and leave a lasting impact.' Wolverine Worldwide scored particularly higher than the industry average in team, camaraderie, hospitality and justice categories: 91% of respondents believe management promotes inclusive behavior, avoids discrimination, and is committed to fair treatment of its employees. 87% of respondents have a sense of enjoyment in the workplace thanks to a hospitable work environment, freedom to express themselves, and sense of community among team members. 87% of respondents feel a sense of pride in their team's accomplishments and are willing to give extra for the benefit of their team. 'By successfully earning this recognition, it is evident that Wolverine Worldwide stands out as one of the top companies to work for, providing a great workplace environment for its employees," said Sarah Lewis-Kulin, the Vice President of Global Recognition at Great Place To Work. Being Certified by Great Places to Work comes on the heels of Wolverine Worldwide being recognized by Forbes as one of America's Dream Employers and America's Best Midsize Employers, and by Inspiring Workplaces as one of the Most Inspiring Workplaces in North America. These achievements are credited to Wolverine Worldwide's prioritization of creating great workspaces and launching employee resource groups (ERGs) to foster connectivity among team members. Since 2023, Wolverine Worldwide has upgraded its global workspaces to attract and retain top-tier talent, including: Renovating 40,000-square feet at its global headquarters in Rockford, MI, to create a new headquarters for its Merrell and Saucony brands (May 2025) Opening a new 11,000-square-foot Innovation Hub in Boston, MA (November 2024) Opening new Office Space in Zhuhai, China (October 2024) Opening new Office Space in Hong Kong (September 2024) Renovating its European Headquarters in King's Place, London (June 2023) On-site amenities offered at its global headquarters include subsidized daycare and early education center for children, fitness centers including personal training and group classes taught by certified personal trainers, hiking and nature trails, subsidized cafeteria, and dog daycare options. In 2024, Wolverine Worldwide launched ERGs to connect team members centered around a shared interest. The voluntary, employee-led groups promote inclusivity, build community, and provide personal and professional support to its members. Current ERGs include: PRIDE, Wolverine Military and Veterans, Wolverine United, Wolverine Young Professionals, Womxn's Resource Community, and Working Moms. For more information on careers at Wolverine Worldwide, visit: Founded in 1883, Wolverine World Wide, Inc. (NYSE:WWW) is one of the world's leading designers, marketers, and licensors of branded casual footwear and apparel, performance outdoor and athletic footwear and apparel, kids' footwear, industrial work boots and apparel, and uniform footwear. The Company's portfolio includes Merrell®, Saucony®, Sweaty Betty®, Hush Puppies™, Wolverine®, Chaco®, Bates®, HYTEST®, and Stride Rite®. Wolverine Worldwide is also the global footwear licensee of the popular brands Cat® and Harley-Davidson®. Based in Rockford, Michigan, for more than 140 years, the Company's products are carried by leading retailers in the U.S. and globally in approximately 170 countries and territories. For additional information, please visit our website, Great Place To Work® Certification™ is the most definitive 'employer-of-choice' recognition that companies aspire to achieve. It is the only recognition based entirely on what employees report about their workplace experience – specifically, how consistently they experience a high-trust workplace. Great Place to Work Certification is recognized worldwide by employees and employers alike and is the global benchmark for identifying and recognizing outstanding employee experience. Every year, more than 10,000 companies across 60 countries apply to get Great Place To Work-Certified. ABOUT GREAT PLACE TO WORK® As the global authority on workplace culture, Great Place To Work® brings 30 years of groundbreaking research and data to help every place become a great place to work for all. Their proprietary platform and For All™ Model helps companies evaluate the experience of every employee, with exemplary workplaces becoming Great Place To Work Certified™ or receiving recognition on a coveted Best Workplaces™ List.
