WWW Stock Forecast & Price Target

Wolverine World Wide Inc. is poised to experience an increase in gross margin to approximately 46.3%, reflecting a 270 basis point improvement year over year, alongside an anticipated operating margin of 10.5%, which signifies a 60 basis point rise. For FY25, the company expects to generate revenues between $1.855 billion and $1.870 billion, marking a projected growth rate of 6.0% to 6.8% year over year, driven significantly by its Active Group segment, particularly through brands such as Merrell and Saucony. Additionally, the positive performance is supported by a robust product pipeline and strategic market positioning, further enhancing the company's earnings potential and outlook.

Wolverine World Wide Inc. faces a negative outlook due to an overall decline in Direct-to-Consumer (DTC) revenues, which fell by 4.9% year-over-year, signaling possible diminished demand across its brand portfolio. Additionally, despite a modest reduction in estimated tariff impacts for FY25, the forecasted gross margin of 45%-46% for next year is below previous consensus expectations, indicating increasing pressure on earnings estimates. Furthermore, challenges within the Work Group segment, which is anticipated to experience a high single-digit decline year-over-year, suggest that the company's recovery efforts are progressing more slowly than initially expected, complicating the turnaround trajectory.