What Happened?
Shares of footwear conglomerate Wolverine Worldwide (NYSE: WWW) fell 28.1% in the morning session after the company reported third-quarter results and provided a full-year earnings forecast that fell short of what analysts had predicted. While the footwear company's third-quarter revenue and non-GAAP profit per share were above Wall Street's consensus estimates, investors focused on the future outlook. For the full-year 2025, Wolverine's adjusted earnings per share guidance was between $1.29 and $1.34. The midpoint of this range came in slightly below what analysts had forecasted. This weaker-than-expected guidance for future profitability appeared to overshadow the positive quarterly results, leading to the sharp decline in the stock price.
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What Is The Market Telling Us
Wolverine Worldwide’s shares are very volatile and have had 25 moves greater than 5% over the last year. But moves this big are rare even for Wolverine Worldwide and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 11.7% on the news that the company posted strong second-quarter financial results that surpassed Wall Street's expectations. The footwear company reported that its revenue climbed 11.5% to $474.2 million, beating analysts' forecasts. This growth was driven by its Active Group, where the Saucony brand's sales surged an impressive 41.5%. Profitability also saw a major boost, with earnings per share landing at $0.35, easily topping the consensus estimate of $0.24 and more than doubling the figure from the same quarter last year. The company attributed the improved gross margin to a better sales mix, less promotional activity, and benefits from supply chain cost initiatives. Additionally, Wolverine strengthened its balance sheet, cutting its net debt by nearly 15% compared to the prior year.
Wolverine Worldwide is down 28.9% since the beginning of the year, and at $16.07 per share, it is trading 50.4% below its 52-week high of $32.40 from August 2025. Investors who bought $1,000 worth of Wolverine Worldwide’s shares 5 years ago would now be looking at an investment worth $567.87.
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