Wolverine World Wide Q2 Earnings Call Highlights

Wolverine World Wide NYSE: WWW reported second-quarter fiscal 2026 results that exceeded its outlook, led by continued growth at its Merrell and Saucony brands, while raising its full-year revenue, margin, earnings and operating free-cash-flow guidance.

Revenue totaled $506 million, up 7% from a year earlier on a reported basis and 6% on a constant-currency basis. Adjusted diluted earnings per share rose 14% to $0.40, above the company’s prior outlook of $0.35 to $0.38. Adjusted operating margin expanded 80 basis points year over year to 10%.

President and Chief Executive Officer Christoph Hufnagel said the company’s results tracked ahead of expectations as its brand-building strategy supported consumer interest, market-share gains and seven consecutive quarters of year-over-year growth.

Merrell and Saucony Drive Active Group Growth

Active Group revenue increased 8% on a constant-currency basis in the quarter. Merrell revenue grew 10%, while Saucony revenue increased 9% on top of 40% growth in the prior-year quarter.

Merrell posted growth across all regions, with particularly strong international gains, according to Hufnagel. In the U.S. hike category, the brand gained triple-digit basis points of market share and had three styles among the top 10. Its Moab 3 and Moab Speed 2 franchises each generated double-digit growth, while its Agility Peak 6 trail-running franchise also grew double digits globally compared with the comparable first season of its predecessor.

The company said Merrell’s direct-to-consumer revenue declined during the quarter because it deliberately shifted marketing spending toward upper-funnel brand-building activity. Hufnagel said the company expects the move to support both wholesale and direct-to-consumer performance over the longer term.

Merrell’s lifestyle business represented less than one-quarter of total brand sales, Hufnagel said during the question-and-answer session. The company sees an opportunity to expand the brand’s outdoor-lifestyle business, especially with women, while maintaining its position in performance outdoor products.

Saucony recorded growth across both performance and lifestyle running, as well as in wholesale and direct-to-consumer channels. The company cited strong trends in Europe, particularly from its key-city strategy in London, Berlin and Paris, which includes race sponsorships, community activations and retail efforts.

In U.S. run specialty, Saucony gained market share during the quarter. Hufnagel said the brand ranked among the five most-worn brands at the Boston and London marathons this spring, including second among women at the Boston Marathon. New products included the Endorphin Elite 3, Triumph 24 and Hurricane 26.

The company raised its full-year Saucony outlook to mid-teens growth, from a prior low- to mid-teens range. Hufnagel said the brand’s growth has become more diversified across regions, channels and product categories. Saucony also plans to test a women’s apparel capsule, developed with Sweaty Betty’s product team, in stores and online early next year.

Sweaty Betty and Work Group Show Early Progress

Sweaty Betty revenue declined 3% in the quarter, reflecting its ongoing reset of the U.S. business. Excluding the effect of that reset, the brand grew about 3%, Hufnagel said. U.K. direct-to-consumer revenue increased by the mid-single digits, while international wholesale revenue rose by strong double digits.

Hufnagel said Sweaty Betty has expanded beyond leggings into categories including bottoms, mid-layers and outerwear. The company also completed four store refits under the brand’s new store design during the year to date.

Work Group revenue declined 2%, a result that Chief Financial Officer Taryn Miller said was modestly ahead of expectations. Within the group, the Wolverine work boot brand grew revenue by the high single digits and gained market share for a third consecutive quarter.

Wolverine cited double-digit retail growth in franchises including Trade Wedge and Loader II, as well as Rancher and Wheatland western boots. The company said it is still recalibrating retail assortments and inventory levels, which could create near-term volatility. Hufnagel said the brand is pursuing a more disciplined distribution strategy while increasing consumer-focused marketing, including collaborations with Metallica Scholars and the Paramount+ series “Landman.”

Margins Improve Despite Tariff Pressure

Consolidated gross margin was 46.5%, down 70 basis points from a year earlier but 10 basis points above the company’s expectations. Miller said gross margin faced an approximately 310-basis-point unmitigated tariff headwind, along with a modest freight-cost impact from higher oil prices. Mitigation actions offset most of the tariff pressure.

The company’s operating-margin improvement reflected revenue growth and expense discipline. Miller said the updated profitability outlook is primarily driven by structural improvements, including healthier inventories, increased full-price selling, product design optimization and supply-chain efficiencies, rather than changes in tariff assumptions.

Net debt fell $125 million year over year to $443 million. Inventory was down about 17% from the prior year, reflecting both receipt timing and efforts to improve inventory management, Miller said. She added that current inventory and planned second-half receipts are expected to support the company’s increased revenue outlook.

Full-Year Outlook Raised

Wolverine World Wide raised its fiscal 2026 revenue outlook to $1.98 billion to $2 billion, compared with its prior range of $1.96 billion to $1.985 billion. At the midpoint, the outlook represents reported revenue growth of approximately 6.2%. On a constant-currency basis, excluding the impact of a 53rd week in 2025, the company expects growth of approximately 6.1%.

• Active Group revenue is expected to increase by high single digits, compared with prior guidance for mid-single-digit growth.
• Work Group revenue is expected to be approximately flat from 2025.
• Merrell is expected to grow by mid-single digits.
• Sweaty Betty is expected to decline by low single digits.
• Wolverine is expected to be approximately flat year over year.
• Gross margin is expected to reach approximately 46.9%, up from prior guidance of 46.4%.
• Adjusted operating margin is forecast at approximately 9.9%, compared with prior guidance of 9.5%.
• Adjusted diluted EPS is projected at $1.55 to $1.65, up from $1.43 to $1.58 previously.
• Operating free cash flow is expected to total $115 million to $130 million, compared with prior guidance of $105 million to $120 million.

For the third quarter, the company expects revenue of $495 million to $500 million, or approximately 6.5% constant-currency growth at the midpoint. It forecast adjusted diluted EPS of $0.42 to $0.45, compared with $0.36 in the prior-year period.

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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