Wolverine World Wide Inc. (NYSE:WWW) shares climbed 8% in Thursday premarket trading after the footwear and apparel company reported second-quarter earnings and revenue above Wall Street expectations and raised its full-year 2026 guidance. Strong performances from Merrell and Saucony helped drive growth, while improvements in operating margin, inventory and debt provided further support.
Wolverine beats Q2 earnings and revenue forecasts
Wolverine World Wide reported adjusted earnings of $0.40 per share for the second quarter, exceeding the analyst consensus of $0.38.
Revenue reached $506.4 million, ahead of expectations of $501.69 million and representing a 6.8% increase from $474.2 million in the same quarter last year.
The stronger-than-expected performance continued the company’s positive start to 2026 and encouraged management to increase its expectations for the full year.
“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,” said Chris Hufnagel, President and Chief Executive Officer. “Based on our strong start to the year and the progress we’re seeing across the business, we’re raising our outlook for 2026.”
Merrell and Saucony lead revenue growth
Wolverine’s Active Group remained the primary engine of growth during the quarter, generating revenue of $388.4 million, up 9.3% from the previous year.
Merrell revenue increased 11.1% to $175.5 million, while Saucony delivered growth of 9.9% to $158.6 million.
International operations also performed strongly, with revenue climbing 10.9% year over year to $277.2 million.
Performance in the Work Group was softer, with revenue declining 1.6% to $105.8 million, partially offsetting the stronger momentum across the company’s active lifestyle brands.
Wolverine raises full-year 2026 guidance
Following the Q2 beat, Wolverine World Wide increased its financial outlook for 2026.
The company now expects adjusted earnings of between $1.55 and $1.65 per share. At $1.60, the midpoint of the range stands above the analyst consensus estimate of $1.56.
Full-year revenue is projected at between $1.98 billion and $2 billion, implying a midpoint of approximately $1.99 billion.
That compares with Wall Street’s consensus forecast of $1.988 billion, leaving the midpoint modestly ahead of current expectations.
The higher guidance reflects management’s confidence that momentum across Merrell, Saucony and other areas of the business can continue during the remainder of the year.
Tariffs weigh on gross margin
Despite stronger sales, Wolverine continued to face pressure from higher U.S. tariffs.
Gross margin declined by 70 basis points to 46.5%, primarily because of the increased tariff burden.
The company partially offset these pressures through higher prices and tariff mitigation initiatives.
Underlying operating profitability nevertheless improved, with adjusted operating margin expanding by 80 basis points to 10.0%.
The divergence between gross and operating margins suggests that improved cost management and operating efficiency helped compensate for some of the external pressure affecting product profitability.
Inventory and debt move sharply lower
Wolverine also made further progress strengthening its balance sheet and managing working capital.
Inventory fell 17.0% year over year to $269 million, potentially reducing markdown risk while giving the company greater flexibility in managing future demand.
Net debt declined 22.0% compared with the prior-year period to $443 million, reflecting continued improvement in the company’s financial position.
The combination of an earnings beat, accelerating growth at Merrell and Saucony, higher full-year guidance and reduced debt helped drive the positive market reaction. Investors will now be watching whether Wolverine can sustain its operating momentum while managing the continuing impact of U.S. tariffs on gross margins.
Wolverine World Wide stock price
