Second quarter 2026
Filed Aug 13, 2026Wolverine Worldwide Reports Second Quarter 2026 Results
Total revenue increased 6.8%, led by Active Group growth of 9.3%, while GAAP operating margin expanded 70 basis points and diluted earnings per share increased 15.6%. The Company raised its full-year revenue, gross-margin, operating-margin, and diluted EPS outlooks.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total RevenueGAAP | $506.4 | – | 6.8% |
| Cost of goods soldGAAP | 271.1 | – | – |
| Gross profitGAAP | 235.3 | – | – |
| Gross MarginGAAP | 46.5% | – | (70) bps |
| Selling, general and administrative expensesGAAP | 187.4 | – | – |
| Environmental and other related costs (income), net of recoveriesGAAP | 0.6 | – | – |
| Operating ExpensesGAAP | $188.0 | – | 2.6% |
| Operating expenses as a % of revenueGAAP | 37.1% | – | – |
| Operating profitGAAP | 47.3 | – | – |
| Operating MarginGAAP | 9.3% | – | 70 bps |
| Interest expense, netGAAP | 7.1 | – | – |
| Other income, netGAAP | (0.6) | – | – |
| Total other expensesGAAP | 6.5 | – | – |
| Earnings before income taxesGAAP | 40.8 | – | – |
| Income tax expenseGAAP | 7.9 | – | – |
| Effective tax rateGAAP | 19.5% | – | – |
| Net earningsGAAP | 32.9 | – | – |
| Net earnings attributable to Wolverine World Wide, Inc.GAAP | $31.2 | – | – |
| Diluted Earnings Per ShareGAAP | $0.37 | – | 15.6% |
| Adjusted Operating Expensesnon-GAAP | $184.9 | – | 2.4% |
| Adjusted Operating Marginnon-GAAP | 10.0% | – | 80 bps |
| Adjusted Diluted Earnings Per Sharenon-GAAP | $0.40 | – | 14.3% |
| Constant Currency Diluted Earnings Per Sharenon-GAAP | $0.38 | – | 8.6% |
| Year-to-date RevenueGAAP | $964.0 | – | – |
| Year-to-date Gross profitGAAP | 453.1 | – | – |
| Year-to-date Gross marginGAAP | 47.0% | – | – |
| Year-to-date Operating expensesGAAP | 371.9 | – | – |
| Year-to-date Operating profitGAAP | 81.2 | – | – |
| Year-to-date Operating marginGAAP | 8.4% | – | – |
| Year-to-date Net earningsGAAP | 55.3 | – | – |
| Year-to-date Net earnings attributable to Wolverine World Wide, Inc.GAAP | $51.4 | – | – |
| Year-to-date Diluted earnings per shareGAAP | $0.61 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Active GroupMerrell and Saucony. | $388.4 | – | 9.3% |
| Work GroupNot disclosed. | $105.8 | – | (1.6)% |
| OtherNot disclosed. | $12.2 | – | 8.9% |
Fiscal year 2026 outlook
- Revenueapproximately $1.980 billion to $2.000 billion
- Gross marginapproximately 46.9%
- Tax rateapproximately 18.0%
- NoteRevenue growth of approximately 5.6% to 6.7% compared to 2025.
- NoteConstant currency revenue growth of approximately 4.9% to 5.9%.
- NoteConstant currency growth of approximately 5.6% to 6.6% excluding the impact of the 53rd week in 2025.
- NoteOperating margin of approximately 9.5%, up 150 basis points compared to 2025.
- NoteAdjusted operating margin of approximately 9.9%, up 90 basis points compared to 2025.
- NoteDiluted earnings per share in the range of $1.48 to $1.58.
- NoteAdjusted diluted earnings per share in the range of $1.55 to $1.65.
- NoteDiluted weighted average shares of approximately 82.0 million.
- NoteNet Earnings $125 - $133.
- NoteAdjusted Net Earnings $131 - $139.
- NoteNet Earnings used to calculate diluted earnings per share $121 - $130.
- NoteAdjusted Net Earnings used to calculate diluted earnings per share $127 - $136.
Capital returns
- Cash dividends paid were $17.0 year-to-date ended July 4, 2026, compared to $16.7 year-to-date ended June 28, 2025.
What drove it
- Merrell revenue was $175.5, compared to $157.9, an increase of 11.1%.
- Saucony revenue was $158.6, compared to $144.3, an increase of 9.9%.
- Wolverine revenue was $39.6, compared to $37.1, an increase of 6.6%.
- International revenue was $277.2, compared to $250.0, an increase of 10.9%.
- Price increases and other tariff mitigation initiatives partially offset the impact of higher U.S. tariffs on gross margin.
- The Company stated it is raising its outlook for 2026 based on its strong start to the year and progress across the business.
Concerns
- Work Group revenue was $105.8, compared to $107.5, a decrease of (1.6)%.
- Sweaty Betty revenue was $40.3, compared to $41.3, a decrease of (2.4)%.
- Gross margin was 46.5%, compared to 47.2% in the prior year, primarily reflecting the impact of higher U.S. tariffs.
- Direct-to-Consumer revenue was $111.7, compared to $111.6, an increase of 0.1%.
- Fiscal 2026 is a 52-week year and fiscal 2025 was a 53-week year, which the Company stated will affect annual comparisons.
- The outlook excludes any benefit from potential tariff refunds.
What to watch
- Full-year revenue outlook of approximately $1.980 billion to $2.000 billion.
- Full-year gross margin outlook of approximately 46.9%, down 40 basis points compared to 2025.
- Full-year operating margin outlook of approximately 9.5% and adjusted operating margin outlook of approximately 9.9%.
- Merrell, Saucony, Sweaty Betty, and Wolverine brand performance.
- The impact of higher U.S. tariffs and the Company's price increases and other tariff mitigation initiatives.
- Inventory, which was $269 million, a decrease of $55 million, or 17.0%.
Balance sheet and cash flow
- Cash and cash equivalents were $158.5 at July 4, 2026, compared to $141.0 at June 28, 2025.
- Inventories, net were $269.3 at July 4, 2026, compared to $324.5 at June 28, 2025.
- Net Debt was $443 million, a decrease of $125 million, or 22.0%.
- Borrowings under revolving credit agreements were $54.0 at July 4, 2026, compared to $135.0 at June 28, 2025.
- Long-term debt was $547.1 at July 4, 2026, compared to $563.5 at June 28, 2025.
- Net cash provided by operating activities was $3.4 year-to-date ended July 4, 2026, compared to net cash used in operating activities of $(39.2) year-to-date ended June 28, 2025.
- Additions to property, plant and equipment were $(4.1) year-to-date ended July 4, 2026, compared to $(11.0) year-to-date ended June 28, 2025.
- Net cash used in investing activities was $(4.6) year-to-date ended July 4, 2026, compared to $(11.9) year-to-date ended June 28, 2025.
- Net cash used in financing activities was $(46.3) year-to-date ended July 4, 2026, compared to net cash provided by financing activities of $35.3 year-to-date ended June 28, 2025.
- Cash and cash equivalents at end of the quarter were $158.5, compared to $141.0.
Analysis
Wolverine Worldwide delivered second-quarter revenue of $506.4, up 6.8% from $474.2. Active Group revenue increased 9.3% to $388.4, with Merrell revenue up 11.1% to $175.5 and Saucony revenue up 9.9% to $158.6. International revenue increased 10.9% to $277.2. These gains offset a 1.6% decline in Work Group revenue to $105.8, a 2.4% decline in Sweaty Betty revenue to $40.3, and Direct-to-Consumer revenue that increased 0.1% to $111.7.
Profitability improved below gross margin. Gross margin declined 70 basis points to 46.5%, which the Company attributed primarily to higher U.S. tariffs, partially offset by price increases and other tariff mitigation initiatives. Operating expenses increased 2.6% to $188.0, while operating expenses as a percentage of revenue declined to 37.1% from 38.7%. This produced GAAP operating margin of 9.3%, up 70 basis points, and adjusted operating margin of 10.0%, up 80 basis points.
GAAP net earnings attributable to Wolverine World Wide, Inc. were $31.2, compared to $26.8, and diluted earnings per share increased to $0.37 from $0.32. Adjusted diluted earnings per share rose to $0.40 from $0.35. Year-to-date operating cash flow was $3.4, compared to net cash used in operating activities of $(39.2), while capital expenditures were $(4.1), compared to $(11.0). Inventory was $269 million, down $55 million, or 17.0%, and net debt was $443 million, down $125 million, or 22.0%.
The Company raised fiscal 2026 revenue guidance to approximately $1.980 billion to $2.000 billion from the previous outlook of approximately $1.960 billion to $1.985 billion. It raised gross margin guidance to approximately 46.9% from approximately 46.4%, operating margin guidance to approximately 9.5% from approximately 9.2%, and adjusted operating margin guidance to approximately 9.9% from approximately 9.5%. Diluted EPS guidance increased to $1.48 to $1.58 from $1.39 to $1.54, while adjusted diluted EPS guidance increased to $1.55 to $1.65 from $1.43 to $1.58. The Company noted that the outlook reflects foreign currency, excludes any benefit from potential tariff refunds, and compares a 52-week fiscal 2026 with a 53-week fiscal 2025.
Management, verbatim
Our team delivered another good quarter, ahead of our expectations — led again by Merrell and Saucony — along with more progress in Sweaty Betty and Wolverine.
Chris Hufnagel, President and Chief Executive Officer of Wolverine Worldwide
We're executing our strategies, elevating our brands, and driving consistent, profitable growth. Based on our strong start to the year and the progress we're seeing across the business, we're raising our outlook for 2026.
Chris Hufnagel, President and Chief Executive Officer of Wolverine Worldwide
Not in the filing
stated, not guessed- Prior-quarter revenue, segment revenue, gross margin, operating income, net income, EPS, cash flow, and balance-sheet comparisons.
- Quarterly operating cash flow and quarterly investing cash flow.
- Free cash flow.
- Share repurchases or share-repurchase authorization.
- Fiscal 2026 operating-expense guidance.
- A previous quarterly outlook document for actual-versus-prior-guidance comparisons.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.