WWW Stock Forecast & Price Target

Wolverine World Wide Inc. demonstrated significant revenue growth in its Active Group segment, with Saucony's revenue rising 42% year-over-year and a gross margin expansion of 560 basis points. The company's Q2 operating margin improved to 9.2%, outperforming consensus estimates and contributing to an upward revision of the FY25 revenue estimate to $1.86 billion, reflecting a 6.2% year-over-year increase. Improved gross margins, driven by a favorable sales mix and supply chain efficiencies, further substantiate a positive financial outlook as revenue estimates for FY26 have been raised due to anticipated higher Active revenue.

Wolverine World Wide Inc faces significant financial headwinds, including an estimated tariff impact of approximately $20 million for FY25, which indicates ongoing susceptibility to increased trade costs despite a reduction from prior estimates. The company’s Direct-to-Consumer (DTC) segment experienced a 1.4% decline in revenue in Q2, suggesting persistent challenges in achieving growth despite management's optimistic view on sequential improvement. Moreover, Q3 revenue guidance points to a modest sequential slowdown, compounded by risks such as brand image translation issues, cost pressures affecting operating margins, and broader macroeconomic uncertainties that could impede future profitability.