Wolverine World Wide Inc. (WWW, Financial) shares reached a new 52-week high of $22.60, marking a 151% increase year to date. This rally contrasts sharply with the 16.6% decline seen in the Retail Apparel industry. Wolverine also outperformed the broader Consumer Discretionary sector and the S&P 500, which posted gains of 10% and 26.1%, respectively.
The company's technical indicators remain strong, as its shares trade above the 200-day and 50-day simple moving averages, signifying a long-term bullish trend. In recent sessions, WWW traded above its 200-day SMA of $12.70 and 50-day SMA of $16.12, highlighting investor optimism in the brand's growth trajectory.
Wolverine anticipates stronger future sales driven by revitalized brand offerings from Merrell and Saucony, which have launched new products like the Moab Speed 2, Agility Peak 5, and the upcoming Speed Arc Collection in early 2025. These launches helped Merrell achieve a 1.4% year-over-year revenue increase in Q3. Saucony, meanwhile, expanded its distribution network to 900 additional lifestyle retail locations.
Sales through Wolverine's direct-to-consumer channel remain solid, with mid-single-digit growth supported by digital investment and improved inventory positioning. The company trimmed inventory by $49.4 million, or 49.4% year-over-year, to $285.5 million, enhancing cash flow and mitigating future markdown risks. Cost-saving initiatives also supported profitability, with gross margin increasing by 380 basis points to 45.3% and adjusted operating profit rising 28.7% year-over-year to $34.1 million.
