Tags: Wolverine | brands | shoe | WWW

Wolverine Brands Propel Global Shoe Growth

By    |   Wednesday, 16 Nov 2011 04:35 PM

Investors might have trouble getting excited about a shoe company, but Wolverine Worldwide (WWW) has a lot to make them take notice. The company propels its growth with a multiple brand strategy which has resulted in a global presence.

Besides the company's namesake brand of work shoes and boots, Wolverine owns and markets 10 other brands of footwear, including Hush Puppies, Merrill, Chaco and Sebago. The company also produces, markets and sells licensed footwear under the brands Cat, Harley Davidson and Patagonia.

The brands are divided into the groups of Outdoor, Heritage and Lifestyle for comparison and tracking purposes. Wolverine has a truly global approach to selling its products and the website notes sales operations in more than190 countries.

For the first three quarters of 2011 Wolverine reported revenues of $1 billion, up from $863 million for the same period last year. Net income for the nine months was $2.01 per share, up 26 percent from $1.59 earned in 2010. The consensus earnings estimate for the full year is $2.53 per share compared to the $2.17 earned in 2010.

Record profits

The third quarter net earnings of 82 cents per share was Wolverine's seventh consecutive quarter of record profits. The revenues generated in the quarter were the fifth straight with a record result.

The company is on a two-year roll of growth, yet the shares have underperformed peers and trade at a much lower valuation than prime competitor Deckers Outdoor (DECK). At $38 per share, WWW is trading at 13 times the projected 2012 earnings. DECK has a forward P/E of almost 20.

After the third quarter earnings release, the analysts at Argus Capital Partners upgraded WWW to buy from hold. Before the earnings release date, Sterne Agee analysts downgraded the stock to hold from buy.

The company next reports on Jan. 19.

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Investors might have trouble getting excited about a shoe company, but Wolverine Worldwide (WWW) has a lot to make them take notice. The company propels its growth with a multiple brand strategy which has resulted in a global presence. Besides the company's namesake brand...
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Wednesday, 16 Nov 2011 04:35 PM
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