How Merrell & Saucony Are Strengthening Wolverine's Brand Portfolio

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How Merrell & Saucony Are Strengthening Wolverine's Brand Portfolio

Wolverine World Wide, Inc. WWW continues to leverage the strength of its brand portfolio to support growth, with Merrell and Saucony remaining the primary engines of its brand-building strategy. First-quarter 2026 revenues rose 11%, driven largely by these two brands, underscoring the effectiveness of its investments in product innovation, marketing capabilities and consumer engagement initiatives.

Merrell remains a significant contributor to Wolverine's momentum, delivering 9% revenue growth during the first quarter on broad-based gains across geographies and product categories. The brand is evolving beyond its traditional hiking roots by expanding its trail-running offering through products such as Agility Peak 6 while extending established franchises like Moab into lifestyle segments. Enhanced storytelling, strategic collaborations and increased marketing investments, including the It Starts Outside campaign and Skyrunner Series sponsorship, are strengthening Merrell's global positioning.

Saucony continues to emerge as Wolverine's fastest-growing major brand, posting 15% revenue growth across regions, channels and categories. Innovation within the Endorphin franchise remains a key growth catalyst, with the newly launched Endorphin Azura becoming one of the brand's most significant product introductions. At the same time, collaborations, archival product launches and activations in influential cities are expanding Saucony's appeal beyond performance running, supporting rising consumer engagement and strengthening brand relevance globally.

Beyond individual brand momentum, Wolverine is executing several initiatives aimed at enhancing long-term brand equity. The company is advancing its key-city strategy, investing in e-commerce capabilities and integrating artificial intelligence into operations to improve speed, agility and decision-making. Management believes its portfolio is well-aligned with favorable consumer trends, particularly in performance running, outdoor recreation and women's activewear.

Wolverine expects Merrell to generate mid-single-digit growth in 2026, while Saucony is projected to deliver low to mid-teen growth. Supported by stronger marketplace management, a robust innovation pipeline and continued investment in demand creation, the company appears well-positioned to sustain brand momentum, expand profitability and drive long-term value creation.

WWW’s Price Performance, Valuation & Estimates

In the past six months, Wolverine’s stock has lost 7.4% compared with the Zacks Shoes and Retail Apparel industry’s 26.9% decline.

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From a valuation standpoint, the company trades at a trailing price-to-sales ratio of 0.72X, below the industry’s average of 1.34X. It has a Value Score of A. 

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The Zacks Consensus Estimate for WWW’s current and next financial years’ earnings implies year-over-year growth of 16.4% and 13.9%, respectively. Earnings estimates for 2026 and 2027 have been revised upward by 10 cents and 7 cents, respectively, over the past 60 days.

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Wolverine currently sports a Zacks Rank #1 (Strong Buy).

Other Key Picks

Some other top-ranked stocks are Tapestry, Inc. TPR, Genesco Inc. GCO and Designer Brands Inc. DBI.

Tapestry is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The company sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Tapestry’s current fiscal-year earnings and sales indicates growth of 36.3% and 13.8%, respectively, from the year-ago actuals. TPR delivered a trailing four-quarter average earnings surprise of 15.6%.

Genesco is a Nashville-based specialty retail and branded company. It sells footwear and accessories in retail stores. The company flaunts a Zacks Rank #1 at present. 

The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings indicates growth of 55.2% from the year-ago actual. GCO delivered a trailing four-quarter average earnings surprise of 3.8%.

Designer Brands designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. It currently carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales suggests growth of 137.5% and 0.5%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 112.8%.

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Wolverine World Wide, Inc. (WWW): Free Stock Analysis Report
 
Genesco Inc. (GCO): Free Stock Analysis Report
 
Tapestry, Inc. (TPR): Free Stock Analysis Report
 
Designer Brands Inc. (DBI): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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