Solid Print, Raise Est.; Is Our Group Close to the Bottom?

研报英文原文证据摘录

Solid Print, Raise Est.; Is Our Group Close to the Bottom?

discounting/re-setting at Sweaty Betty in the US (we estimate SB reset was 5- Market Cap. (mil) US$1,242.4

points); both Saucony and Merrell are seeing record levels of search interest as WWW Avg Daily Vol (000) 1,122

is redirecting marketing spend towards the upper funnel. Book Value/Share US$7.83

Price/Book 198%

Net Cash Per Share ¢(6.93)

• What did we learn from the call back? The $8M raise in EBIT for '26 comes from Debt to Total Capital 53.0%

$10M reduction in unmitigated tariffs, with $2M embedded for higher freight (starting Div (ann) US$0.40

to see some already now). Company is pleased with how Saucony has managed the Div Yield 2.58%

marketplace in Lifestyle--seeing momentum in sell through in both verticals, with strong Fiscal Year End Dec

demand in Europe. GM's at 46.4% for the year are now at the higher end of the 45-47%

range--management still sees opportunities with full price selling, costs savings and Price Performance - 1 Year

efficiencies. WWW is actively engaged with the tariff refund process ($36M in IEEPA paid USD

out); uses of cash will be intine with the typical capital allocation priorities (investment 35

in the business, debt paydown, buybacks). 30

• Raise est. For '26/'27, we model sales up 7%/5% and EPS at $1.60/$1.78 (EBIT margins 25

at 9.6%/9.8%, respectively). WWW did not buy back any shares in 1Q26 but still has 20

$135M on the buyback (10% of market cap)-we expect company to be acquisitive at

these levels. 15

RISKS TO ACHIEVEMENT OF PT & RECOMMENDATION 10

Consumer spending, wholesale partners’ appetite towards brands, inflation. May-25 Jul-25 Sep-25 Nov-25 Jan-26 Mar-26 May-26

Source: Bloomberg

COMPANY DESCRIPTION