Wolverine World Wide shares rise on strong quarterly results

Wolverine World Wide Inc. shares climbed more than 5% in premarket trading on Wednesday after the footwear manufacturer posted quarterly results that exceeded market expectations.

The company reported adjusted earnings per share of $0.75 for the three months ended March 31, compared with a consensus estimate of $0.68 among analysts surveyed by Refinitiv. Revenue totaled $745.2 million, topping the $720 million forecast.

Gross margin expanded to 46.2%, up from 44.8% in the same period a year ago, as the company benefited from improved pricing and lower input costs. Operating income rose 12% year-over-year to $112.3 million.

Chief Executive Blake Krueger highlighted strong performance across the company’s brands, including Merrell, Sperry and Wolverine, driven by robust demand in both wholesale and direct-to-consumer channels. The company also reaffirmed its full-year guidance, citing confidence in sustained growth despite macroeconomic headwinds.

Shares of Wolverine World Wide were trading at $26.45 in premarket activity, up from Tuesday’s close of $25.10. The stock has gained roughly 12% over the past month, outperforming the broader footwear sector.

Analysts at Stifel reiterated a hold rating on the stock but raised their price target to $28 from $26, citing the company’s operational improvements and resilient brand portfolio. The stock’s recent rally follows a broader trend in consumer discretionary equities, which have seen increased investor interest amid easing inflation concerns.

Wolverine World Wide’s results underscore the resilience of branded footwear amid shifting consumer spending patterns, with the company positioning itself for steady growth in the quarters ahead.