Wolverine World Wide, Inc. WWW received a price target cut due to continued softness surrounding the brands Sperry boat shoe segment.
Wedbush analyst Christopher Svezia maintains an Outperform rating and lowered his price target from $38 to $35.
Weak demand for Sperry's boat shoes may be weighing on Wolverine World Wide.
After conducting meetings with the president of Sperry, Tom Kennedy, and Wolverine World Wide CFO Michael Stornant, Svezia says demand for boat shoes may have been more tepid and is likely down double digits.
The analyst lowered his second-quarter sales estimates around $7 million, reflecting flat year-over-year growth but kept his EPS estimates unchanged.
“Management remains confident in the sales and margin outlook for 2H19 given on hand orders for Sperry boots and new Merrell product introductions, ecommerce growth and gains from Saucony Italy,” Svezia wrote in a note.
Svezia also said Wolverine World Wide management should reiterate its outlook, helped by share repurchases and expense discipline.
“While valuation is likely pricing in a softer 2Q with shares at a ~24% discount to historic levels, it may take until the 2Q print for investors to regain confidence,” Svezia said.
Wolverine World Wide shares were down 0.74% at $26.84 at time of publication.
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