Wolverine World Wide NYSE: WWW reported a stronger-than-expected start to fiscal 2026, with management pointing to momentum at Merrell and Saucony, improved operating discipline and continued progress on its brand-building strategy.
President and Chief Executive Officer Chris Hufnagel said the first quarter “exceeded our expectations across all key financial metrics.” Revenue rose 11% on a reported basis and 7% on a constant currency basis, driven by the company’s two largest brands. Merrell revenue increased 9%, while Saucony grew 15%.
Chief Financial Officer Taryn Miller said first-quarter revenue totaled $458 million, above the high end of the company’s outlook. Foreign currency provided a $15 million benefit. Wholesale revenue increased 10% from the prior year, while direct-to-consumer revenue was approximately flat, with management citing continued improvement in the mix of full-price sales.
Adjusted diluted earnings per share rose 32% year over year to $0.25, above the company’s prior outlook of $0.20 to $0.22. Adjusted operating margin expanded 140 basis points to 7.7%, while gross margin was flat at 47.6%. Miller said tariff mitigation actions and a better full-price sales mix offset a 270-basis-point unmitigated tariff headwind. Net debt was $519 million, down $85 million from a year earlier.
Merrell and Saucony Lead Portfolio Growth
Hufnagel said Merrell continued to focus on “modernizing the outside” through more athletic, style-led and versatile footwear. The brand grew revenue 9% in the quarter, including solid growth across most regions and categories. He highlighted the Agility Peak 6 trail running launch, ongoing strength in the Moab Speed 2 and Moab 3 franchises, and lifestyle products such as the Wrap collection.
Merrell also launched a new brand platform, “It Starts Outside,” and Hufnagel said the campaign helped generate strong year-over-year increases in brand search interest. In the question-and-answer session, he said the U.S. hike category improved to 6% growth in the first quarter after being flat in the fourth quarter of 2025, while Merrell gained share in 12 of the last 13 quarters.
Saucony revenue increased 15% in the first quarter, reaching what Miller called a record level for the brand. Hufnagel said growth was broad-based across regions, channels and categories, with both performance and lifestyle contributing. He cited the launch of the Endorphin Azura, which he said became the top seller for Saucony on saucony.com and at wholesale, as well as the Endorphin Pro 5.
Hufnagel described Saucony as positioned at the intersection of performance running and lifestyle running. In response to an analyst question, he said brand heat was coming from both sides of the business and pointed to collaborations, key city investments and record Google search interest. Miller said Saucony faces its toughest year-over-year comparison in the second quarter, partly due to a $4 million order timing shift and U.S. lifestyle distribution expansion in the prior year, but reiterated the full-year expectation for low- to mid-teens growth.
Sweaty Betty Reset and Wolverine Work Boot Progress
Sweaty Betty revenue declined 4% in the quarter, which management attributed to the planned reset of its U.S. business toward a more premium direct-to-consumer model. Excluding that U.S. reset, Hufnagel said the brand delivered low single-digit growth. The brand’s U.K. direct-to-consumer business grew for the second consecutive quarter, while strategic retail and partner distribution across Europe and Asia Pacific grew more than 60%.
The Wolverine brand declined 3% from the prior year but delivered sequential improvement in line with expectations. Hufnagel said the brand gained share for the second consecutive quarter in the U.S. work boot market. He cited new product innovation, expanded western and wedge boot assortments, and marketing tied to Paramount+ series “Landman,” the Houston Rodeo and a limited-edition Metallica boot supporting skilled trades students through Project Bootstrap.
Guidance Maintained for Revenue, Raised for Profitability
Wolverine reiterated its fiscal 2026 revenue outlook of $1.96 billion to $1.985 billion, representing reported growth of about 5.2% at the midpoint. On a constant currency basis and excluding the effect of the 53rd week in 2025, the company also expects revenue growth of about 5.2% at the midpoint.
The company maintained its brand outlooks: mid-single-digit growth for Merrell, low- to mid-teens growth for Saucony, a low-single-digit decline for Sweaty Betty and approximately flat revenue for Wolverine. Active Group revenue is expected to grow mid-single digits, while Work Group revenue is expected to be approximately flat.
Wolverine raised its gross margin outlook to approximately 46.4% from 46%, adjusted operating margin to approximately 9.5% from 9.1%, and adjusted diluted EPS to a range of $1.43 to $1.58 from the prior range of $1.35 to $1.50. The company continues to expect operating free cash flow of $105 million to $120 million and capital expenditures of about $20 million.
Miller said the updated profitability outlook reflects lower expected tariff costs, partially offset by higher freight surcharges tied to elevated oil prices. The guidance assumes the current incremental 10% tariff rate remains through July and then returns to IEPA levels. Wolverine now estimates the 2026 unmitigated tariff impact at about $50 million, down from a prior estimate of about $60 million. The guidance does not include any benefit from IEPA tariff refunds; Miller said the company paid approximately $36 million in IEPA tariffs and is “actively engaged in the refund process.”
Second-Quarter Outlook and Management Commentary
For the second quarter, Wolverine expects revenue of $495 million to $500 million, representing reported growth of about 4.9% at the midpoint and constant currency growth of 4.5%. Active Group revenue is expected to grow high single digits, while Work Group revenue is expected to decline low single digits. Adjusted EPS is expected to be $0.35 to $0.38, compared with $0.35 in the prior-year quarter.
Management said the company is remaining cautious given a dynamic operating environment. Miller cited pressure from Middle East distributor cancellations and inflationary considerations for the consumer. Hufnagel said the order book supports the full-year outlook, while noting the company is watching the consumer closely.
Hufnagel also discussed efforts to make the business less promotional and more premium in direct-to-consumer channels. He said Wolverine is shifting marketing investment higher in the funnel, emphasizing awareness and long-term brand building rather than near-term conversion alone. He said the approach may pressure short-term DTC results but is “the absolute right thing to do for the business for the long term.”
“We’re encouraged by our Q1 performance, which reinforces our belief that the business is operating from a stronger foundation,” Miller said. Hufnagel added that while the company is encouraged by progress, “we’re still not satisfied,” saying management sees more opportunity ahead for the company, its brands and shareholders.
About Wolverine World Wide NYSE: WWW
Wolverine World Wide, Inc NYSE: WWW is a global footwear and apparel company headquartered in Rockford, Michigan. The company designs, manufactures and markets a diversified portfolio of casual, active and performance lifestyle brands. Wolverine World Wide's offerings span multiple price points and consumer segments, with products that include outdoor and trail footwear, running shoes, casual sneakers, boat shoes, work boots and related apparel and accessories.
Key brands in Wolverine World Wide's portfolio include Merrell, an outdoor performance footwear brand; Saucony, known for running shoes and athletic gear; Sperry, which popularized boat shoes; Hush Puppies, a casual and comfort‐oriented line; and Keds, a heritage sneaker label.
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