Wolverine World Wide, Inc.

What they do

The company designs, sources, markets, and licenses footwear and apparel under brands including Merrell, Saucony, Sweaty Betty, Chaco, Wolverine, Cat, Bates, Harley-Davidson, HYTEST, and Hush Puppies. Products are sold worldwide through owned operations, third-party distributors, licensees, and joint ventures. Revenue comes from wholesale, direct-to-consumer, international, licensing, and leather operations.

Revenue drivers

• Active Group — Q2 2026 revenue $388.4M, up 9.3% YoY; includes Merrell, Saucony, Sweaty Betty, and Chaco.
• Work Group — Q2 2026 revenue $105.8M, down 1.6% YoY; includes Wolverine, Cat, Bates, Harley-Davidson, and HYTEST.
• Saucony and Merrell — Q2 2026 combined revenue of $334.1M, with Saucony up 9.9% and Merrell up 11.1%; key growth drivers in Active Group.
• International and Direct-to-Consumer — International revenue was $277.2M (up 10.9%) and DTC was $111.7M (up 0.1%) in Q2 2026.

Recent performance

Q2 2026 revenue was $506.4M, up 6.8% YoY; diluted EPS was $0.37 (adjusted $0.40). Gross margin fell 70 bps to 46.5% due to higher U.S. tariffs, partly offset by price increases. H1 2026 revenue was $964.0M vs $886.5M in prior-year period. For full-year 2025 (ended Jan 3, 2026), revenue increased 6.8% to $1.874B, net income attributable to company was $95.8M, and diluted EPS was $1.14.

Strategy

Management is executing strategies to elevate brands, drive consistent profitable growth, and mitigate tariff impacts through price increases and other initiatives. They highlight progress in Sweaty Betty and Wolverine, and are raising the 2026 outlook based on strong performance. Focus includes brand investment, full-price sales mix, product cost savings, and international expansion.

Risks

• Brand image and consumer trends — Failure to respond to changing footwear/apparel trends could hurt demand and brand image.
• Foreign sourcing and tariffs — Substantial reliance on third-party manufacturers in Asia Pacific; tariffs and supply disruptions could raise costs.
• Foreign exchange fluctuations — International revenue (~52% of total) exposes results to currency swings; FX increased revenue by $14M in 2025 but is a risk.
• Inventory management — Inability to effectively manage inventory levels could lead to markdowns or excess stock.

Outlook

For fiscal 2026, management expects revenue of approximately $1.980B to $2.000B (5.6%-6.7% growth; ~5.6%-6.6% constant currency ex-53rd week). Gross margin ~46.9%, operating margin ~9.5%, and diluted EPS of $1.48-$1.58 (adjusted $1.55-$1.65). Outlook raised from previous guidance, reflecting strong year-to-date performance.