Most consumer discretionary businesses succeed or fail based on the broader economy. Over the past six months, it seems like demand trends are working against their favor as the industry
has tumbled by 4.7%. This performance was disheartening since the S&P 500 gained 4.1%.
Shares of footwear conglomerate Wolverine Worldwide (NYSE:WWW)
jumped 5.3% in the afternoon session after new economic data showed unexpected strength in the U.S. economy. The positive sentiment across Wall Street came after a Commerce Department report showed U.S. retail sales rose a better-than-expected 0.6% in June, signaling resilient consumer spending despite concerns over tariffs. For a consumer discretionary company like Wolverine, which owns footwear and apparel brands such as Merrell, Saucony, and Hush Puppies, signs of a strong consumer are particularly encouraging. Robust consumer spending can translate directly into higher sales, supporting the stock's upward movement in line with the overall market trend. The positive data helped ease investor fears about a potential recession, boosting stocks across various sectors.
Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks.
But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.
Looking back on footwear stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Wolverine Worldwide (NYSE:WWW) and its peers.
A number of stocks fell in the afternoon session after the major indices pulled back (Nasdaq -1.3%, S&P 500 -1.1%) as Israel carried out significant strikes on Iranian nuclear and military sites. This development sent crude oil prices surging, as investors fear potential disruptions to global oil supply and a wider regional conflict.
Footwear conglomerate Wolverine Worldwide (NYSE:WWW) fell short of the market’s revenue expectations in Q1 CY2025 as sales rose 4.4% year on year to $412.3 million. Its non-GAAP EPS of $0.18 per share was 64.2% above analysts’ consensus estimates.
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025.
Wall Street has set ambitious price targets for the stocks in this article.
While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
The stocks featured in this article are seeing some big returns.
Over the past month, they’ve outpaced the market due to new product launches, positive news, or even a dedicated social media following.
A company with profits isn’t always a great investment.
Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
Footwear conglomerate Wolverine Worldwide (NYSE:WWW) reported Q1 CY2025 results exceeding the market’s revenue expectations, with sales up 4.4% year on year to $412.3 million. The company expects next quarter’s revenue to be around $445 million, close to analysts’ estimates. Its non-GAAP profit of $0.18 per share was 64.2% above analysts’ consensus estimates.
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
A company that generates cash isn’t automatically a winner.
Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
What a brutal six months it’s been for Wolverine Worldwide. The stock has dropped 27.2% and now trades at $12.09, rattling many shareholders. This was partly driven by its softer quarterly results and might have investors contemplating their next move.
