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By Dhirendra Tripathi
Investing.com – Wolverine stock (NYSE:WWW) recouped its losses and was trading in the green Tuesday following the company’s $410 million deal to buy women’s activewear brand Sweaty Betty.
The deal is expected to add to earnings in the very first year.
The stock, after being down 0.5%, recovered some losses and was down 0.1% at 10:30 AM ET.
Growth of activewear has ballooned as the stretchy, performance apparel did double-duty as office attire for Zoom calls as well as loungewear.
The global activewear market is over $200 billion in revenue, according to Wolverine.
The shareholders selling out to Wolverine include private equity L Catterton, co-owned by billionaire and CEO of LVMH Bernard Arnault.
Sweaty Betty’s is focused solely on females and ecommerce sales contribute around 70% of its revenue.
The target company aims to end 2021 with $250 million in revenue.
Wolverine revised its outlook for 2021, pegging its revenue to come between $244 billion and $2.5 billion. It expects adjusted earnings per diluted share in the range of $2.24 to $2.34.
Sweaty Betty’s Chief Executive Officer Julia Straus will continue to lead the brand and will report to Wolverine President Brendan Hoffman.