Market Overview

Wolverine World Wide Sees Price Target Cut Amid Weak Demand For Sperry Boat Shoes

Share:
Wolverine World Wide Sees Price Target Cut Amid Weak Demand For Sperry Boat Shoes

Wolverine World Wide, Inc. (NYSE: WWW) received a price target cut due to continued softness surrounding the brands Sperry boat shoe segment.

The Analyst

Wedbush analyst Christopher Svezia maintains an Outperform rating and lowered his price target from $38 to $35.

The Thesis

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.

Price Action

Wolverine World Wide shares were down 0.74% at $26.84 at time of publication.

Related Links:

Is Another Potential Acquisition Coming For Foot Locker? Analyst Looks At European Market

Footwear Expert: Tariffs Hurt Nike In A Different Manner Than You Think

Latest Ratings for WWW

DateFirmActionFromTo
Oct 2020KeyBancMaintainsOverweight
Oct 2020WedbushMaintainsOutperform
Sep 2020Piper SandlerMaintainsNeutral

View More Analyst Ratings for WWW
View the Latest Analyst Ratings

 

Related Articles (WWW)

View Comments and Join the Discussion!

Posted-In: Christopher Svezia Michael Stornant Sperry Tom KennedyAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
OCXBTIGInitiates Coverage On5.0
GCMGWilliam BlairInitiates Coverage On
PDCraig-HallumInitiates Coverage On41.0
CAPLWells FargoDowngrades
MMPWells FargoDowngrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com