Wolverine World Wide's (WWW) Saucony and Merrell brands are showing strong momentum and market-share gains while maintaining pricing discipline, positioning the company for durable growth even as broader athletic footwear sentiment stays weak, UBS Securities said.

Saucony grew sales 10% in the quarter, building on more than 40% growth a year earlier, with gains in the US Run Specialty channel achieved while maintaining a disciplined promotional strategy, according to the note Thursday.

Merrell grew 11% and gained more than 100 basis points of market share in its core US hiking category. The company also raised its gross margin guidance by 50 basis points. UBS said the increase was mainly driven by stronger demand, full-price selling and supply-chain efficiencies.

UBS raised its fiscal 2026 to 28 EPS estimates by 4% to 6%, with fiscal 2026 EPS increased 4% to $1.65 on stronger growth and slightly better sales growth. It raised its fiscal 2027 and 2028 EPS estimates by 6% and 5%, respectively, reflecting the flow-through from a higher fiscal 2026 base and gross-margin expansion.

UBS reiterated its buy rating on the stock and lifted its price target to $31 from $29.

Shares of Wolverine World Wide were up more than 5% in Friday afternoon trading.

Price: 20.90, Change: +1.02, Percent Change: +5.13