WWW Q3 Earnings & Sales Beat Estimates on Broad-Based Brand Momentum

Wolverine World Wide, Inc. WWW has reported impressive third-quarter 2025 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Also, revenues and earnings grew year over year.

The company delivered a solid quarter, with Merrell, Saucony and Sweaty Betty all exceeding expectations. Disciplined execution, coupled with another quarter of a record gross margin, resulted in better-than-anticipated earnings per share. While progress has been strong, the company acknowledges that further work is needed.

Wolverine continues to focus on executing its brand-building model while navigating a dynamic environment. As the company approaches the end of a pivotal year, new strategies and initiatives are driving the development of innovative products, strengthening brand storytelling and supporting sustained value creation for shareholders.

Insight Into WWW’s Q3 Performance

The company has posted adjusted earnings of 36 cents a share, which beat the Zacks Consensus Estimate of 33 cents. The figure improved from adjusted earnings of 28 cents in the prior-year quarter. At constant currency, the company’s earnings per share were 35 cents, up from earnings of 28 cents in the prior-year quarter.

Total revenues were $470.3 million, up 6.8% year over year on a reported basis and 5.5% on a constant-currency basis. Ongoing revenues of $470.3 million increased 6.9% on a reported basis and 5.5% on a constant-currency basis. The top line surpassed the Zacks Consensus Estimate of $463 million. Direct-to-consumer revenues on an ongoing basis were $106.8 million, down 4.9% year over year. WWW’s international business revenues increased 13.5% to $242.7 million.

Regarding segments, Active Group’s revenues increased 10.7% year over year to $352.8 million. However, the segment’s revenues surpassed the Zacks Consensus Estimate of $343.5 million. Revenues at Work Group declined 2.9% year over year to $105.9 million and lagged the consensus estimate of $106.7 million. Revenues of the Other segment fell 6.5% year over year to $11.6 million. Also, the metric lagged the consensus estimate of $12.4 million.

Brand-wise, Merrell’s revenues rose 5.1% year over year to $167.3 million. Saucony’s revenues jumped 27% to $133.1 million. Wolverine’s revenues declined 8.2% to $45.3 million. Sweaty Betty generated revenues of $44.5 million, down 3.9% year over year. The Zacks Consensus Estimate for revenues was pegged at $165.6 million for Merrell, $131 million for Saucony, $47.9 million for Wolverine and $43.1 million for Sweaty Betty.

Wolverine’s Margins & Costs

Gross profit was $223.2 million, up 12.3% year over year. We note that the gross margin increased 240 basis points (bps) year over year to 47.5%. This resulted from the benefits of supply-chain cost-saving initiatives, reduced promotional activity and favorable pricing actions, partially offset by the impacts of higher U.S. tariffs.

Adjusted operating costs increased 9.1% year over year to $180.2 million. Also, the metric, as a percentage of revenues, increased 150 bps to 9.1%.

WWW Stock Past 3-Month Performance

WWW’s Other Financials

The company ended the quarter with cash and cash equivalents of $133.9 million, long-term debt of $546.4 million, and stockholders' equity of $391 million.

Net debt was $543 million at the end of the quarter, down 3.6% from the previous year. Inventory at the end of the quarter was $293 million, down 0.7% from the year-earlier quarter.

What Lies Ahead for Wolverine?

The company’s 2025 outlook indicates the impacts of foreign currency fluctuations and the inclusion of a 53rd week in the fiscal year, both of which will influence annual comparisons. For fiscal 2025, revenues are projected between $1.86 billion and $1.87 billion, suggesting growth of 6-6.8% from the 2024 ongoing business and constant-currency growth of 5.1-6%. 

The gross margin is expected to be 47.1%, reflecting an improvement of 280 basis points over 2024. The operating margin is anticipated to reach 7.8%, up 220 basis points from the prior year, whereas the adjusted operating margin is forecast to be 8.9%, representing a 160-basis-point improvement over 2024’s adjusted operating margin.

Earnings per share are projected at $1.08 to $1.13, whereas adjusted earnings per share are estimated between $1.29 and $1.34.

In the past three months, shares of this Zacks Rank #3 (Hold) company have lost 18.2% compared with the industry’s 16.3% decline.

Stocks to Consider

Some better-ranked stocks are Boot Barn Holdings, Inc. BOOT, Urban Outfitters Inc. URBN and American Eagle Outfitters Inc. AEO.

Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Boot Barn’s fiscal 2026 earnings and sales implies growth of 20.5% and 16.2%, respectively, from the year-ago actuals. Boot Barn delivered a trailing four-quarter average earnings surprise of 5.4%.

Urban Outfitters is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home decor and gift items. It carries a Zacks Rank #2 (Buy) at present.

The Zacks Consensus Estimate for Urban Outfitters’ current fiscal-year earnings and sales indicates growth of 29.1% and 12.8%, respectively, from the year-ago actuals. URBN delivered a trailing four-quarter average earnings surprise of 24.8%.

American Eagle is a specialty retailer of casual apparel, accessories and footwear. It carries a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for American Eagle's current fiscal-year earnings and sales indicates declines of 36.2% and 1.5%, respectively, from the year-ago actuals. AEO delivered a trailing four-quarter average earnings surprise of 30.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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