Wolverine “looks promising” and keeps surprising market

Research analysts at Zacks expect “Wolverine's robust performance to continue going forward” after the apparel retailer Wolverine World Wide Inc. posted better-than-expected bottom line results in the past four quarters.

In one of their first notes to investors of 2014, Zacks’ analysts have highlighted that Wolverine has “secured a comparatively favourable position. With the company providing an upbeat guidance for 2013 and the economy showing signs of recovery.”

Wolverine´s capacity to surprise the market in the past three quarters have gained the company the praise of peers and analysts alike. The company posted a “positive earnings surprise” in words of Zacks’ team of 11.5 percent in the third quarter, 35.3 percent in the second quarter and 51.9 percent in the first quarter of 2013.

Wolverine´s strong performance gains market´s nods

Wolverine World Wide has been up 66.25 percent excluding dividends in the past year, or up 66.83 percent including dividends.

Wolverine's global net sales grew over two times in the third quarter, rose 88 percent in the second quarter and twofold in the first quarter of 2013, compared to the Q4 2012´s 60.5 percent sales improvement.

Confident in the strong performance seen in the last year to last in 2014, WWW’s management has raised its earnings guidance, bringing adjusted earnings per share to a range of 2.73-2.83 dollars, up from the earlier projection of 2.60-2.75 dollars.

”Revenues are expected to be in the band of 2.71-2.73 billion dollars, up 6.4 percent to 7.1 percent year-on-year on a pro-forma basis,” added analysts at Zacks. .

“Going forward, we believe Wolverine's operational efficiencies, its formidable 16-brand portfolio and leverage from the recent acquisitions well positioned it to generate healthy sales. Moreover, exclusive assortments remain popular among consumers and impart it a competitive edge,” reassure their trust in the stock from Zacks.