Q3 FY2026
Filed Nov 12, 2026Wolverine Worldwide reports Q3 2026 revenue of $505.4 million, up 7.5%, with GAAP diluted EPS of $0.78 and raises FY2026 outlook
Revenue grew 7.5% (7.7% constant currency), with Active Group up 9.9% and International up 11.7%. GAAP operating margin rose to 17.7% from 8.4%. The release attributes about 640 basis points of the Q3 margin gain to IEEPA tariff refunds of $35.3 million, a one-time item, so the underlying improvement is smaller than the headline. Revenue fell at Other, Wolverine and Sweaty Betty.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, Q3 2026GAAP | $505.4M | – | 7.5% |
| Revenue, Q3 2026, constant currencynon-GAAP | $506.3M | – | 7.7% constant currency |
| Cost of goods sold, Q3 2026GAAP | $229.3M | – | – |
| Gross profit, Q3 2026GAAP | $276.1M | – | – |
| Gross margin, Q3 2026GAAP | 54.6% | – | 710 bps |
| Selling, general and administrative expenses, Q3 2026GAAP | $186M | – | – |
| Environmental and other related costs (income), net of recoveries, Q3 2026GAAP | $400K | – | – |
| Operating expenses, Q3 2026GAAP | $186.4M | – | 1.5% |
| Operating expenses as a % of revenue, Q3 2026GAAP | 36.9% | – | – |
| Operating profit, Q3 2026GAAP | $89.7M | – | – |
| Operating margin, Q3 2026GAAP | 17.7% | – | 930 bps |
| Interest expense, net, Q3 2026GAAP | $4.8M | – | – |
| Other expense (income), net, Q3 2026GAAP | $200K | – | – |
| Total other expenses, Q3 2026GAAP | $5M | – | – |
| Earnings before income taxes, Q3 2026GAAP | $84.7M | – | – |
| Income tax expense, Q3 2026GAAP | $17.6M | – | – |
| Effective tax rate, Q3 2026GAAP | 20.7% | – | – |
| Net earnings, Q3 2026GAAP | $67.1M | – | – |
| Net earnings attributable to Wolverine World Wide, Inc., Q3 2026GAAP | $65.8M | – | – |
| Diluted earnings per share, Q3 2026GAAP | $0.78 | – | 160.0% |
| Adjusted operating expenses, Q3 2026non-GAAP | $186M | – | 3.2% |
| Adjusted operating margin, Q3 2026non-GAAP | 17.8% | – | 870 bps |
| Adjusted diluted earnings per share, Q3 2026non-GAAP | $0.79 | – | 119.4% |
| Constant currency adjusted diluted earnings per share, Q3 2026non-GAAP | $0.75 | – | 108.3% |
| Revenue, year-to-date 2026 (nine months)GAAP | $1.47B | – | – |
| Cost of goods sold, year-to-date 2026 (nine months)GAAP | $740.2M | – | – |
| Gross profit, year-to-date 2026 (nine months)GAAP | $729.2M | – | – |
| Gross margin, year-to-date 2026 (nine months)GAAP | 49.6% | – | – |
| Selling, general and administrative expenses, year-to-date 2026 (nine months)GAAP | $556.1M | – | – |
| Environmental and other related costs (income), net of recoveries, year-to-date 2026 (nine months)GAAP | $2.2M | – | – |
| Operating expenses, year-to-date 2026 (nine months)GAAP | $558.3M | – | – |
| Operating expenses as a % of revenue, year-to-date 2026 (nine months)GAAP | 38.0% | – | – |
| Operating profit, year-to-date 2026 (nine months)GAAP | $170.9M | – | – |
| Operating margin, year-to-date 2026 (nine months)GAAP | 11.6% | – | – |
| Interest expense, net, year-to-date 2026 (nine months)GAAP | $18.4M | – | – |
| Other expense (income), net, year-to-date 2026 (nine months)GAAP | −$600K | – | – |
| Total other expenses, year-to-date 2026 (nine months)GAAP | $17.8M | – | – |
| Earnings before income taxes, year-to-date 2026 (nine months)GAAP | $153.1M | – | – |
| Income tax expense, year-to-date 2026 (nine months)GAAP | $30.7M | – | – |
| Effective tax rate, year-to-date 2026 (nine months)GAAP | 20.0% | – | – |
| Net earnings, year-to-date 2026 (nine months)GAAP | $122.4M | – | – |
| Net earnings attributable to Wolverine World Wide, Inc., year-to-date 2026 (nine months)GAAP | $117.2M | – | – |
| Diluted earnings per share, year-to-date 2026 (nine months)GAAP | $1.40 | – | – |
| Net cash provided by (used in) operating activities, year-to-date 2026 (nine months)GAAP | $73.6M | – | – |
| Additions to property, plant and equipment, year-to-date 2026 (nine months)GAAP | −$7.7M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Active Group, Q3 2026No driver stated in the release. Constant currency change printed as 10.2%. | $387.8M | – | 9.9% |
| Work Group, Q3 2026No driver stated in the release. Constant currency change printed as 0.8%. | $106.9M | – | 0.9% |
| Other, Q3 2026No driver stated in the release. Constant currency change printed as (6.0)%. | $10.7M | – | (7.8)% |
| Merrell, Q3 2026No driver stated in the release. Constant currency change printed as 6.8%. | $178.2M | – | 6.5% |
| Saucony, Q3 2026No driver stated in the release. Constant currency change printed as 19.7%. | $158.9M | – | 19.4% |
| Wolverine, Q3 2026No driver stated in the release. Constant currency change printed as (4.1)%. | $43.5M | – | (4.1)% |
| Sweaty Betty, Q3 2026No driver stated in the release. Constant currency change printed as (6.5)%. | $41.4M | – | (7.0)% |
| International, Q3 2026No driver stated in the release. Constant currency change printed as 12.1%. | $271.2M | – | 11.7% |
| Direct-to-Consumer, Q3 2026No driver stated in the release. Constant currency change printed as 2.3%. | $109.1M | – | 2.2% |
FY2026 (52-week year) outlook
- Revenueapproximately $2.000 billion to $2.010 billion, growth of approximately 6.7% to 7.2% compared to 2025; constant currency growth approximately 5.9% to 6.4%; approximately 6.6% to 7.2% excluding the 53rd week in 2025
- Gross marginapproximately 48.7%, up 140 basis points compared to 2025, including an approximate 170 basis point benefit from IEEPA tariff refunds
- Tax rateapproximately 19.0%
- NoteOperating margin approximately 11.5%, up 350 basis points compared to 2025, including an approximate 170 basis point benefit from IEEPA tariff refunds
- NoteAdjusted operating margin approximately 11.8%, up 280 basis points compared to 2025, including an approximate 170 basis point benefit from IEEPA tariff refunds
- NoteDiluted EPS (GAAP) $1.88 to $1.92, including an approximate $0.32 benefit from IEEPA tariff refunds
- NoteAdjusted diluted EPS (non-GAAP) $1.95 to $1.99, including an approximate $0.32 benefit from IEEPA tariff refunds
- NoteNet earnings (GAAP) $160 million to $163 million; adjusted net earnings $166 million to $169 million
- NoteDiluted weighted average shares approximately 82.5 million
Capital returns
- Cash dividends paid, year-to-date 2026 (nine months): $25.3 million, compared with $25.0 million in the prior year period (cash flow statement).
- No share repurchases are printed in the release.
What drove it
- IEEPA tariff refunds: the company received refunds of $35.3 million, including interest, in Q3 2026. Of this, $32.6 million was recorded as a reduction to cost of goods sold, $1.3 million as a reduction to interest expense and $1.4 million as a reduction to inventory.
- The release states that the IEEPA refunds benefited gross margin, operating margin and adjusted operating margin by approximately 640 basis points each, and diluted EPS and adjusted diluted EPS by approximately $0.31 each, net of tax.
- Gross margin rose to 54.6% from 47.5%, and the release attributes the change in part to the IEEPA refunds described above.
- Revenue growth was led by Active Group (+9.9%), International (+11.7%) and Saucony (+19.4%). The release describes Merrell and Active Group as part of the two largest brands led performance, as quoted by the CEO.
- Revenue declined at Other (-7.8%), Sweaty Betty (-7.0%) and Wolverine (-4.1%).
- Interest expense, net fell to $4.8 million from $8.1 million.
- Stated outlook change: the release says the outlook includes the IEEPA refund benefit, which the previous outlook did not include, and that it reflects foreign currency impacts.
- Q3 2025 operating expenses included reorganization costs of $2.9 million and environmental costs of $0.5 million, per the reconciliation tables. Q3 2026 adjustments were $0.4 million of environmental costs.
Concerns
- Roughly 640 basis points of the Q3 gross, operating and adjusted operating margin improvement comes from one-time IEEPA tariff refunds, as the release itself states.
- The FY2026 gross margin and operating margin guidance each include an approximate 170 basis point IEEPA refund benefit, so the guide includes a non-recurring item.
- Revenue in Other, Sweaty Betty and Wolverine declined in Q3 2026. Direct-to-Consumer grew only 2.2% and Work Group 0.9%.
- Effective tax rate guidance was raised to approximately 19.0% from approximately 18.0%.
- Diluted share count guidance was raised to approximately 82.5 million from approximately 82.0 million.
- The release describes the environment as dynamic and refers to navigating conditions based on year-to-date results and expectations for the final quarter.
What to watch
- Q4 2026 results against the full-year revenue range of $2.000 billion to $2.010 billion.
- Whether the IEEPA refund benefit of approximately $0.32 per diluted share in FY2026 is the only driver of the margin and EPS guidance increase, using the company's own reconciliation.
- Revenue trends at Sweaty Betty, Wolverine and Other.
- Net Debt progression, following the $399 million Net Debt reported at October 3, 2026.
- Inventory levels against the reported $278.2 million.
- Effective tax rate of approximately 19.0% for FY2026.
Balance sheet and cash flow
- Cash and cash equivalents at October 3, 2026: $148.1 million, compared with $133.9 million at September 27, 2025. The release describes this as an increase of $14 million, or 10.6%.
- Inventories, net: $278.2 million, compared with $292.5 million. The release describes this as a decrease of $14 million, or 4.9%.
- Net Debt: $399 million. The release describes this as a decrease of $143 million, or 26.4%. The prior-period Net Debt figure is not printed as a line item.
- Long-term debt: $547.4 million, compared with $546.4 million.
- Borrowings under revolving credit agreements: nil at October 3, 2026 (printed as a dash), compared with $130.0 million at September 27, 2025.
- Total assets: $1,677.3 million, compared with $1,706.6 million.
- Stockholders' equity: $533.9 million, compared with $391.0 million.
- Net cash provided by operating activities, year-to-date 2026 (nine months): $73.6 million, compared with $(6.2) million. Changes in operating assets and liabilities were $(73.0) million, compared with $(97.4) million.
- Additions to property, plant and equipment, year-to-date 2026 (nine months): $(7.7) million, compared with $(13.9) million. Free cash flow is not printed in the release.
- Payments under revolving credit agreements (year-to-date): $(398.0) million; borrowings under revolving credit agreements: $323.0 million.
Analysis
Wolverine Worldwide reported third quarter 2026 revenue of $505.4 million, up 7.5% from $470.3 million, or 7.7% on a constant currency basis. Growth came mainly from Active Group, up 9.9% to $387.8 million, and International, up 11.7% to $271.2 million. Saucony rose 19.4% to $158.9 million and Merrell rose 6.5% to $178.2 million. Work Group grew 0.9%. Wolverine (-4.1%), Sweaty Betty (-7.0%) and Other (-7.8%) declined. Direct-to-Consumer grew 2.2% to $109.1 million. The release describes this as the eighth consecutive quarter of growth. It does not state drivers at the brand level.
Gross margin was 54.6%, compared with 47.5% a year earlier, an increase of 710 basis points. Operating margin was 17.7%, against 8.4%, and adjusted operating margin was 17.8%, against 9.1%. Diluted EPS was $0.78, against $0.30, and adjusted diluted EPS was $0.79, against $0.36. The company states that IEEPA tariff refunds of $35.3 million, including interest, benefited gross margin, operating margin and adjusted operating margin by approximately 640 basis points each, and EPS by approximately $0.31 each, net of tax. Of the refunds, $32.6 million reduced cost of goods sold. The reported margin improvement is therefore substantially driven by this one-time item, as the release itself notes.
Operating expenses rose 1.5% to $186.4 million, and SG&A was $186.0 million, against $183.1 million. Interest expense, net fell to $4.8 million from $8.1 million. The effective tax rate was 20.7%, against 20.5%. For the first nine months, revenue was $1,469.4 million, against $1,356.8 million, operating profit was $170.9 million, against $101.3 million, and diluted EPS was $1.40, against $0.76. Net cash from operations was $73.6 million, compared with $(6.2) million, and capital expenditure was $7.7 million, compared with $13.9 million.
The balance sheet strengthened. Cash rose to $148.1 million from $133.9 million, and the release reports Net Debt of $399 million, down $143 million or 26.4%. Revolving credit borrowings were nil at October 3, 2026, against $130.0 million a year earlier. Stockholders' equity rose to $533.9 million from $391.0 million. Dividends paid were $25.3 million year-to-date. No share repurchases are printed.
The company raised its FY2026 outlook. Revenue is now expected at approximately $2.000 billion to $2.010 billion, gross margin at approximately 48.7%, operating margin at approximately 11.5% and adjusted operating margin at approximately 11.8%. Diluted EPS is now guided at $1.88 to $1.92, and adjusted diluted EPS at $1.95 to $1.99. Each of these includes the IEEPA refund benefit. The effective tax rate guide moved to approximately 19.0% and the share count to approximately 82.5 million. The release states that the previous outlook did not include any IEEPA refund benefit. Investors should separate the refund from the operating improvement when reading the guide.
Management, verbatim
We delivered a strong third quarter performance, led by our two largest brands and disciplined execution across the business.
Chris Hufnagel, President and Chief Executive Officer, Wolverine Worldwide
This quarter, now our eighth consecutive quarter of growth, is further evidence that our transformation story is also a growth story – with continued earnings improvement and a healthier balance sheet providing us greater capacity to invest behind our brands and the opportunities we see ahead.
Chris Hufnagel, President and Chief Executive Officer, Wolverine Worldwide
While we continue to navigate a dynamic environment – based on our year-to-date results and our expectations for the final quarter of the year – we're raising our outlook for 2026.
Chris Hufnagel, President and Chief Executive Officer, Wolverine Worldwide
Not in the filing
stated, not guessed- Prior-year and prior-quarter comparatives for the year-to-date revenue change and the year-to-date growth rate are not printed.
- Prior-period Net Debt figure is not printed as a line item; only the change ($143 million, 26.4%) is given.
- Free cash flow is not printed; not computed.
- Share repurchases for the period are not printed.
- Segment-level operating income or margin is not printed.
- Prior-year or prior-quarter values for cost of goods sold, gross profit and SG&A changes are not printed as percentages.
- Previous outlook was not supplied as a separate document; the release prints prior-outlook figures, but vs_prior_guidance is left empty as no separate previous outlook was provided.
- Operating expenses guidance is not printed.
- Consensus estimates, analyst expectations and share-price reaction are not in the documents.
- Adjusted diluted EPS prior-year change is printed as 119.4%; no separate constant currency change is printed for GAAP EPS.
- Quarter-over-quarter (sequential) comparatives are not printed.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.