Piper Jaffray Cuts Price Target on Wolverine World Wide (WWW) Following Pre-Announcement

Piper Jaffray reiterated a Neutral rating on Wolverine World Wide (NYSE: WWW), and cut the price target to $26.00 (from $27.00), following the company's pre-announcement last night. The announcement comes ahead of a competitor conference scheduled for today, and showed that sales growth underperformed expectations handily but management reiterated its EPS range of $0.47-$0.49 EPS.

Analyst Erinn Murphy commented, "We are updating our earnings model following WWW's preannouncement last night which was released ahead of management's presentation at a competitor conference slated for today. Bottom line, sales growth underperformed expectations handily but management reiterated its EPS range of $0.47-$0.49 EPS. To wit, reported net sales will be down (5%)-(4%) vs. guidance for +LSD reported. We were already below consensus looking for +0.8% growth to consensus' +2% Q3 sales growth. FX, store closures and the Patagonia exit were highlighted in the press release as factors that weighed on sales but these are all factors that have been known. As such, the core businesses were softer than plan during the Sept quarter and are adjusting our estimates accordingly. While we are maintaining our Q3 EPS, our Q4 EPS moves from $0.41 to $0.37 (consensus: $0.42). We no longer believe mgmt's former FY15 sales guidance is achievable."

For an analyst ratings summary and ratings history on Wolverine World Wide click here. For more ratings news on Wolverine World Wide click here.

Shares of Wolverine World Wide closed at $27.24 yesterday.

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