Second Look: Wolverine World Wide rises

Shares of footwear maker Wolverine World Wide Inc. rose on Thursday, a day after shares fell 10 percent on a downgrade that came despite strong first-quarter results.

On Wednesday, the Rockford, Mich., maker of Merrell, Hush Puppies and Patagonia footwear said first-quarter earnings rose 6 percent, helped by strong international sales, and raised fiscal-year guidance.

However, shares fell 10 percent as an analyst downgraded the stock due to its share price and belief that sales were decelerating.

In a note to investors, Citi Investment Research analyst Kate McShane said Wolverine was trading at a 9 percent premium to its peers. She said sales are difficult to predict since retailers are increasingly ordering closer to the time they actually sell products and are at risk to cancel orders amid a weak economic environment.

She downgraded the company to "Hold" from "Buy."

On Thursday, Morgan Joseph & Co. analyst Jeffrey Blaeser was a bit more positive, but also rates Wolverine a "Hold."

"While we believe Wolverine's diverse business mix somewhat shields it from potential U.S. weakness, macro-economic conditions remain a concern and could continue to limit top-line growth," he wrote in a client note.

Shares rose 84 cents, or 3 percent, to $28.54. The stock ha traded between $19.85 and $31.21 over the past year.