Wolverine Stock Up 11% After Q4 Earnings & Sales Beat Estimates

Wolverine World Wide, Inc. WWW reported impressive fourth-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 strong fourth quarter, marked by broad-based brand momentum, improving direct-to-consumer trends and solid international growth, reinforcing confidence in its turnaround strategy. Strength in key brands, such as Saucony and Merrell, helped drive revenue growth. Product cost savings, better full-price selling and pricing actions supported meaningful margin expansion. 

The company also showed improved earnings leverage, reduced net debt and continued share repurchases, signaling financial discipline and balance sheet strength. An encouraging 2026 guidance pointing to revenue growth and operating margin expansion further boosted investor sentiment. As a result, WWW shares rose 10.8% yesterday.

Insight Into WWW’s Q4 Performance

The company posted adjusted earnings of 45 cents a share, which beat the Zacks Consensus Estimate of 44 cents. The figure improved 12.5% from adjusted earnings of 40 cents in the prior-year quarter. At constant currency, the company’s earnings per share were 45 cents, up from earnings of 40 cents in the prior-year quarter.

Total revenues were $517.5 million, up 4.6% year over year on a reported basis and 3.1% on a constant-currency basis. The top line surpassed the Zacks Consensus Estimate of $515 million. Direct-to-consumer revenues were $160.7 million, up 5.9% year over year, or 3.8% on a constant-currency basis. WWW’s international business revenues increased 9.8% to $277.4 million, or 6.8% in constant currency.

Regarding segments, Active Group’s revenues increased 12.4% year over year to $372.7 million. However, the segment’s revenues surpassed the Zacks Consensus Estimate of $361.6 million. Revenues at Work Group declined 11.3% year over year to $134 million and lagged the consensus estimate of $137.1 million. Revenues of the Other segment fell 9.2% year over year to $10.8 million. Also, the metric lagged the consensus estimate of $11.7 million.

Brand-wise, Merrell revenues rose 5.9% year over year to $173.1 million. Saucony revenues jumped 26.4% to $125.9 million. Wolverine revenues declined 10.5% year over year to $55.8 million. Sweaty Betty generated revenues of $68.9 million, up 8.8% year over year. The Zacks Consensus Estimate for revenues was pegged at $171.6 million for Merrell, $124.5 million for Saucony, $56.2 million for Wolverine and $62.1 million for Sweaty Betty.

Wolverine’s Margins & Costs

Gross profit was $243.3 million, up 12.8% year over year. We note that the gross margin increased 340 basis points (bps) year over year to 47%. The increase resulted from product cost savings, a favorable mix shift toward more full-price sales and the positive effects of recent price increases, partially offset by higher U.S. tariffs.

Adjusted operating costs increased 11.7% year over year to $186.6 million. Also, the metric, as a percentage of revenues, rose 110 bps to 11%.

Operating profit increased 29.4% year over year to $48.9 million. We note that the operating margin increased 180 basis points in 9.4%.

WWW’s Other Financials

The company ended the quarter with cash and cash equivalents of $206.3 million, long-term debt of $546.7 million, and stockholders' equity of $423.1 million.

Net debt was $415 million at the end of the quarter, down 16.2% from the previous year. Inventory at the end of the quarter was $274 million, up 10.7% from the year-earlier quarter.

In the fourth quarter, the company repurchased 0.9 million shares of its common stock for about $15 million, at a weighted average price of $16.13 per share. As of Jan. 3, 2026, approximately $135 million remained available under the company’s existing share repurchase authorization.

WWW’s Q1 Outlook

For the first quarter of 2026, revenues are expected to be $445-$450 million, indicating year-over-year growth of 8.5% at the mid-point, or 5.1% on a constant-currency basis. 

The gross margin is projected to be 47.5%. The adjusted operating margin is expected to be 6.6%. Adjusted EPS is guided to be 20-22 cents for the first quarter.

At the segment level, the Active Group is expected to grow in the low-double digits year over year in the first quarter and high-single digits on a constant-currency basis, while the Work Group is expected to decline year over year in the low-single digit and in the mid-single digit on a constant-currency basis.

What Lies Ahead for Wolverine?

The company’s 2026 outlook reflects the impact of foreign currency. In addition, 2026 is a 52-week year, whereas fiscal 2025 was a 53-week year, which will affect year-over-year comparisons.

For 2026, the company expects revenues of $1.960-$1.985 billion, indicating growth of 4.6-5.9% from that reported in 2025. On a constant-currency basis, revenues are expected to grow 3.8-5.1% or 4.5-5.8%, when excluding the impacts of the 53rd week in 2025.

Regarding segments, the Active Group is expected to grow year over year in the high-single digit and the mid-single digit on a constant-currency basis in fiscal 2026. The Work Group is expected to be flat year over year for on both reported and constant-currency basis.

Brand-wise, Merrell is expected to grow in the mid-single digit in 2026, on both reported and constant-currency basis. Saucony is projected to grow year over year in the mid-teens and low to mid-teens on a constant-currency basis. Wolverine is expected to be flat year over year on both reported and a constant-currency basis. Sweaty Betty is anticipated to decline year over year in the low-single digit on both reported and a constant-currency basis.

The gross margin is projected to be 46%, suggesting a decrease of 130 basis points from the 2025 actual. The operating margin is expected to be 8.8%, an increase of 80 basis points from that reported in 2025, while the adjusted operating margin is anticipated to be 9.1%, up 10 basis points from the prior year’s adjusted operating margin. Earnings per share are projected to be $1.31-$1.46, with adjusted earnings per share expected from $1.35 to $1.50.

WWW Stock Past 3-Month Performance

In the past three months, shares of this Zacks Rank #3 (Hold) company have gained 23.9% against the industry’s 0.3% decline.

Stocks to Consider

We have highlighted three better-ranked stocks, namely, Deckers Outdoor Corporation DECK, American Eagle Outfitters Inc. AEO and Boot Barn Holdings, Inc. BOOT.

Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Deckers’ current fiscal-year earnings and sales indicates growth of 8.5% and 8.9%, respectively, from the year-ago actuals. DECK delivered a trailing four-quarter average earnings surprise of 36.9%.

American Eagle is a specialty retailer of casual apparel, accessories and footwear. It currently sports a Zacks Rank of 1.

The Zacks Consensus Estimate for AEO’s current fiscal-year earnings and sales implies a decline of 20.7% and growth of 2.6%, respectively, from the year-ago actuals. American Eagle delivered a trailing four-quarter average earnings surprise of 35.1%.

Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently has a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for Boot Barn’s fiscal 2026 earnings and sales implies growth of 26% and 17.6%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 4.9%.

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

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