Wolverine World Wide Q3 Earnings Call Highlights

Key Points

• Wolverine raised its fiscal 2026 outlook after Q3 revenue increased 7.5% to $505 million and adjusted earnings excluding tariff refunds beat expectations at $0.48 per share. It now forecasts revenue of $2.00–$2.01 billion and adjusted earnings of $1.95–$1.99 per share.
• Saucony and Merrell led brand growth, with constant-currency revenue up 20% and 7%, respectively. That growth offset declines at Sweaty Betty and Wolverine, where U.S. resets, promotions and inventory actions weighed on sales.
• Q3 gross margin was 54.6%, including a substantial tariff-refund benefit; excluding refunds, it expanded 70 basis points to 48.2%. Net debt fell $143 million year over year to $399 million, while the company said lower debt could provide flexibility for share repurchases.

Wolverine World Wide NYSE: WWW raised its fiscal 2026 revenue and earnings outlook after third-quarter results exceeded its expectations, as growth at Saucony and Merrell helped offset declines at Sweaty Betty and its namesake Wolverine brand.

Revenue rose 7.5% to $505 million in the quarter, or 7.7% on a constant-currency basis. Adjusted diluted earnings were $0.79 per share, including a $0.31 benefit from IEEPA tariff refunds and related interest. Excluding that benefit, adjusted earnings rose 33% to $0.48 per share, above the company’s outlook of $0.42 to $0.45.

“Our brand-building model has proven to be effective, delivering eight consecutive quarters of top-line growth,” President and CEO Chris Hufnagel said. He added that consumer pressure persisted and the macroeconomic environment remained dynamic.

Higher Full-Year Outlook

Wolverine now expects fiscal 2026 revenue of $2 billion to $2.01 billion, up from its previous range of $1.98 billion to $2 billion. The new midpoint implies approximately 7% reported growth, or 6.9% growth on a constant-currency basis after adjusting for the 53rd week in 2025.

The company raised its adjusted earnings forecast to $1.95 to $1.99 per share from $1.55 to $1.65. The updated range includes an estimated $0.32 per-share benefit from tariff refunds and related interest received to date; it does not assume additional refunds.

Free cash flow is projected at $155 million to $170 million, compared with the prior outlook of $115 million to $130 million. CFO Taryn Miller attributed the increase to the refunds and related interest, as well as lower expected capital spending.

For the fourth quarter, Wolverine expects revenue of $531 million to $541 million and adjusted earnings of $0.52 to $0.56 per share. The earnings forecast includes approximately $0.01 per share from tariff refunds.

Saucony and Merrell Lead Growth

Saucony revenue increased 20% on a constant-currency basis, with double-digit growth across wholesale and direct-to-consumer channels and in both performance and lifestyle products. Miller said international wholesale growth was stronger than in the U.S., while direct-to-consumer sales grew in both regions.

Hufnagel said the Endorphin Azura remained on pace to become the biggest franchise launch in Saucony’s history. The brand plans to introduce a new Endorphin Zenith super shoe in 2027 and expand its key-city marketing strategy into the U.S. and Asia-Pacific.

Merrell revenue rose 7%, its ninth consecutive quarter of growth, with balanced gains across channels and regions. Hufnagel said the brand gained share in the U.S. hiking market, where the Moab and Moab Speed franchises contributed to growth. Merrell plans to introduce the Moab Speed 3 in the first quarter of 2027.

Hufnagel said some international shipments had shifted from the fourth quarter into the first quarter, without quantifying the impact. He also noted that Merrell was selling down the Moab Speed 2 ahead of the new model and facing a comparison with the extra week in 2025.

Resets Weigh on Other Brands

Sweaty Betty revenue fell 7%, with its ongoing U.S. reset accounting for roughly half the decline, according to Miller. A more promotional U.K. women’s activewear market also weighed on direct-to-consumer results. Hufnagel said the brand’s U.K. stores posted low-single-digit growth, while Asia-Pacific revenue more than quadrupled from a small base.

Revenue at the Wolverine brand declined 4% as the company worked to reduce slower-moving inventory, raise average selling prices and position the work-boot brand at more premium price points. The company now expects a low-single-digit full-year revenue decline for the brand, compared with its earlier forecast of approximately flat sales.

Wolverine maintained its full-year outlook for mid-teens growth at Saucony, mid-single-digit growth at Merrell and a low-single-digit decline at Sweaty Betty.

Margins and Balance Sheet

Third-quarter gross margin was 54.6%, including an approximately 640-basis-point benefit from tariff refunds. Excluding the refunds, gross margin expanded 70 basis points to 48.2%, as pricing, a higher mix of full-price sales and supply-chain efficiencies more than offset an approximately 170-basis-point unmitigated tariff headwind and modest freight pressure.

Miller said the company’s full-year gross margin forecast, excluding the refund benefit, stands at 47%, the high end of its long-term range. She described the improvement as structural but said it was premature to raise the long-term target, citing uncertainties including tariffs, freight and oil prices.

Net debt fell to $399 million, down $143 million from a year earlier. Asked about capital allocation, Miller said the company’s priorities remain investing in brands and capabilities, maintaining a strong balance sheet and paying its dividend. She said lower debt provides flexibility to consider additional returns to shareholders, including share repurchases.

About Wolverine World Wide (NYSE:WWW)

Wolverine World Wide, Inc. is a footwear and apparel company that designs, markets and distributes products through a portfolio of consumer and workwear brands. Its brands include Merrell, Saucony, Sweaty Betty, Wolverine, Chaco and Bates, with offerings that span outdoor, athletic, casual and occupational footwear, as well as apparel and accessories. Founded in 1883 in Rockford, Michigan, the company has expanded from its early roots in leather and footwear manufacturing into an international brand business.

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