WWW Stock Forecast & Price Target

Wolverine World Wide Inc. is projecting significant growth for FY25, with expected revenues between $1.855 billion and $1.870 billion, reflecting a year-over-year increase of approximately 6.0% to 6.8%. The company anticipates a gross margin expansion to around 46.3%, which represents a 270 basis point improvement compared to the previous year, along with an operating margin rising to about 10.5%, up 60 basis points year-over-year. Notably, the Active Group segment, which includes brands like Merrell and Saucony, is anticipated to be a key driver of this revenue growth, contributing to a mid-teens year-over-year growth rate, underscoring the robust performance of Wolverine’s product pipeline and market positioning.

Wolverine World Wide Inc is facing significant financial challenges, notably indicated by the discrepancy between its declining inventory and sales growth rates, highlighting a potential issue with demand or overstocking. The ongoing struggles of the Work Group segment, compounded by expectations of a delayed recovery and reduced gross margin estimates for the following year, add further pressure to overall earnings projections. Additionally, declining revenues from direct-to-consumer channels and an unfavorable broader market environment related to tariffs and consumer sentiments contribute to the negative outlook on the company’s financial performance.