WWW Earnings Prediction
The chart below shows how WWW performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WWW sees a +12.39% change in stock price 10 days leading up to the earnings, and a -1.72% change 10 days following the report. On the earnings day itself, the stock moves by -5.83%. This data can give you a slight idea of what to expect for the next quarter's release.
WWW Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
440.20M
-16.58%
3.53%
Gross Margin
45.25%
10.85%
5.01%
Operating Margin
6.07%
226.34%
-20.13%
Net Margin
5.52%
222.81%
50.41%
EPS
0.28
154.55%
64.71%
No Data Available
WWW Earnings Analysis
Wolverine World Wide, Inc. Corporation (WWW.N) Earnings Conference Call
Positive
Record Gross Margin Achievement: 1. Record Gross Margin: The company achieved a record gross margin of 45.3% in Q3 2024, an increase of 380 basis points compared to the previous year, reflecting improved sales mix and cost-saving initiatives.
Revenue Surpasses Forecast: 2. Revenue Exceeds Expectations: Third quarter revenue for ongoing business reached $440 million, exceeding the outlook by $20 million, driven by increased demand in the active group and favorable foreign currency effects.
Debt Reduction Achievement: 3. Significant Debt Reduction: Net debt decreased to $563 million, down approximately $100 million from the previous quarter and $370 million from the prior year, indicating strong balance sheet improvement.
Earnings Per Share Increase: 4. Earnings Growth: Adjusted diluted earnings per share improved to $0.29 in Q3 2024, more than doubling from the previous year, showcasing effective cost management and operational efficiency.
Inventory Reduction Success: 5. Inventory Optimization: Inventory levels were reduced by approximately 40% year-over-year to $286 million, demonstrating effective inventory management and planning.
Negative
Revenue Decline Analysis: 1. Revenue Decline: Third quarter revenue for ongoing business declined 7% year-over-year, with a significant drop from $1.99 billion in 2023 to an expected $1.73 billion to $1.745 billion in 2024, representing a decline of 12.8% at the midpoint.
Work Group Revenue Decline: 2. Work Group Shortfall: The work group segment experienced an 11% decline in revenue for the quarter, which was worse than the expected high single-digit decline, primarily due to supply chain disruptions and shipping delays.
Revenue Decline Analysis: 3. Saucony Performance Drop: Saucony's revenue fell by 10% in the third quarter, indicating ongoing challenges despite some demand momentum, particularly in e-commerce and U.S. wholesale.
Inventory Management Challenges: 4. Inventory Management Issues: Although inventory levels were down approximately 40% year-over-year, the company still faced challenges in managing excess inventory, particularly in the work group segment, which affected product availability.
Active Group Revenue Decline: 5. Negative Guidance for Active Group: The active group revenue is expected to decline by mid-teens percentage year-over-year, indicating continued struggles in this segment despite some positive trends in other areas.
WWW FAQs
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WWW Earning Call Sentiment
Wolverine World Wide, Inc. (WWW) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
WWW.N
-0.39%Positive
The earnings call summary shows strong improvement in operating and gross margins, debt reduction, and optimistic EPS guidance. Despite a revenue decline, the company's strategic focus on brand positioning and sourcing diversification is positive. The Q&A reveals positive sentiment from analysts, particularly regarding brand growth and margin improvements. The lack of specific guidance for 2025 and unclear responses are minor concerns. Given the company's small-cap status, the positive factors are likely to result in a stock price increase of 2% to 8% over the next two weeks.
