On Jul 10, 2013, Zacks Investment Research upgraded
Wolverine World Wide Inc
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Wolverine came up with strong second-quarter 2013 results,
owing to the robust performance of its newly acquired brands. The
company's quarterly earnings of 46 cents a share zoomed past the
company's previous guidance range of 31 cents - 35 cents and
handily surpassed the Zacks Consensus Estimate of 34 cents.
Moreover, the quarterly earnings jumped 12.2% year over year.
Top line surged 88% year over year to $587.8 million, while
gross margin expanded 320 basis points to 41%, reflecting
increased contribution from high margin consumer direct
Based on its progress, the company raised its earnings per
share projection for fiscal 2013 to $2.60 - $2.75 from $2.50 -
$2.65. However, its sales guidance of $2.7 billion - $2.775
billion, up 6% to 8.9% year over year on a pro-forma basis was
Gross margin is expected to improve moderately in 2013 due to
the product mix shift toward high margin consumer direct business
and lower markdowns.
We remain upbeat on Wolverine's fundamentals and believe that
the strong performance of the company's brands is likely to boost
its profitability in the upcoming quarters.
Other Stocks to Consider
Besides Wolverine, the other stock in the consumer
discretionary sector worth considering includes
Brown Shoe Co. Inc
), which carries a Zacks Rank #1 (Strong Buy).
Big 5 Sporting Goods Corp.
Deckers Outdoor Corporation
), both carrying a Zacks Rank #2 (Buy) are also worth
BIG 5 SPORTING (BGFV): Free Stock Analysis
BROWN SHOE CO (BWS): Free Stock Analysis
DECKERS OUTDOOR (DECK): Free Stock Analysis
WOLVERINE WORLD (WWW): Free Stock Analysis
To read this article on Zacks.com click here.