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Saucony, Merrell Again to Headline Wolverine’s Q3 Earnings Results

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Saucony, Merrell Again to Headline Wolverine’s Q3 Earnings Results

Analysts see continued growth at the Merrell and Saucony brands when Wolverine World Wide reports third quarter earnings Thursday.

Wolverine World Wide’s two active brands, Saucony and Merrell, are expected to lead third quarter earnings results, while its Sweaty Betty operation remains in reset mode.

“Our analyses indicate that Wolverine World Wide had a solid third quarter, led by robust trends at Saucony and Merrell. We thus forecast a 2-cent third quarter earnings per share (EPS) beat, and expect an in-line fourth quarter outlook,” said UBS analyst Mauriceo Serna.

Serna said there’s a chance for some upside on momentum from Saucony and Merrell that could drive a bigger beat and raise.

The UBS analyst said the firm’s Google analysis shows “broad-based momentum for Merrell” in the third quarter, with U.S. and U.K. searches up 14 percent year-over-year and 54 percent year-over-year, respectively. And for Saucony, U.K. searches rose 135 percent year-over-year for the same period. He said that industry data also shows that Saucony’s third quarter U.S. website visits were up 7 percent year-over-year, while European visits rose 66 percent. These data points “support continued momentum across [Wolverine’s] key Active brands and reinforce our conviction in [Wolverine’s] growth potential,” he said.

Serna said Saucony sales could be up 15 percent year-over-year to $153 million, adding that recent product innovation supports momentum. Recent launches include Endorphin Elite 3, Triumph 24, and Hurricane 26. Collaborations with Studio Nicholson, Engineered Garments, Minted New York, and Westside Gunn is expected to support lifestyle demand, he said.


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