Wolverine Eyes Growth - Analyst Blog
July 15 2011 - 10:52AM
Zacks
Wolverine World Wide
Inc. (WWW) is eyeing to emerge as the
world leader in premier footwear and apparel industry. The company
to increase the visibility and sales of its multiple brands has
appointed Nicholas T. Long to the company's board. Nicholas Long is
the Chief Executive Officer of MillerCoors, a leading beverage
company.
Nicholas carries vast experience at
different senior roles in global operations and strategic
marketing. Further, he will be enriching and developing the
customer relationships of Wolverine with his marketing
expertise.
Additionally, Wolverine announced a
quarterly dividend of 12 cents a share. The announced dividend will
be paid on November 1, 2011 to shareholders of record as of October
3, 2011.
Earlier, the company posted strong
second-quarter 2011 results that topped the Zacks expectation on
the heels of double-digit growth witnessed across its brands. The
company also reiterated its outlook for fiscal 2011 on the back of
better-than-expected results.
The quarterly earnings of 48 cents
a share outpaced the Zacks Consensus Estimate of 46 cents and grew
23.1% from 39 cents earned in the prior-year quarter.
Wolverine, the seller of products
under Harley-Davidson Footwear, Hush Puppies, Merrell and other
brands, declared that its total revenue for the quarter climbed
20.1% to $310.1 million from the prior-year quarter, handily
beating the Zacks Consensus Estimate of $294 million.
The company’s multi-brand
portfolio, multi-distribution channel strategy and higher prices
remain its key growth drivers.
Rockford, Michigan-based Wolverine
enjoyed increased momentum in fiscal 2010 that continues into
fiscal 2011. Moreover, we believe that the company remains well
positioned to increase its market share on the strength of its
brand portfolio. The Merrell brand has been the key growth driver
in the past decade, and we expect it to catalyze future growth.
Currently, we maintain a long-term
‘Neutral’ rating on the stock. Moreover, Wolverine, which competes
with Timberland Co. (TBL), Deckers Outdoor
Corporation (DECK) and Skechers USA Inc.
(SKX), holds a Zacks #2 Rank, which translates into a short-term
‘Buy’ recommendation.
DECKERS OUTDOOR (DECK): Free Stock Analysis Report
SKECHERS USA-A (SKX): Free Stock Analysis Report
TIMBERLAND CO A (TBL): Free Stock Analysis Report
WOLVERINE WORLD (WWW): Free Stock Analysis Report
WOLVERINE WORLD (WWW): Free Stock Analysis Report
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