The Active Group led the performance with revenue increasing 16.2 per cent to $355.5 million, while the Work Group saw a modest 2.4 per cent growth. However, revenue in the ‘Other’ segment declined by 21.7 per cent.
Wolverine Worldwide has reported an 11.5 per cent YoY revenue rise to $474.2 million in Q2 FY25, led by Saucony and Merrell growth.
The gross margin improved to 47.2 per cent, and adjusted EPS more than doubled to $0.35.
Q3 revenue is expected between $450–$460 million.
The company withheld full-year guidance due to macro-economic uncertainties and potential tariff impacts.
Among key brands, Saucony surged 41.5 per cent YoY to $144.3 million and Merrell grew 10.7 per cent to $157.9 million. In contrast, the Wolverine and Sweaty Betty brands saw declines of 7.5 per cent and 6.1 per cent respectively, Wolverine Worldwide said in a press release.
The international revenue rose 15.7 per cent to $250 million, while direct-to-consumer (DTC) sales dipped slightly by 1.4 per cent to $111.6 million.
The company has reported significant improvement in gross margin, which expanded by 410 basis points (bps) to 47.2 per cent, thanks to a better sales mix, reduced promotions, and supply chain cost savings. Operating margin improved to 8.6 per cent, up 180 bps from the previous year. Adjusted diluted earnings per share more than doubled to $0.35, up from $0.15.
The inventory at the end of the quarter stood at $316 million, reflecting a 6.4 per cent increase. Net debt declined by approximately 14.8 per cent to $568 million.
“Our second quarter results exceeded our expectations, which led to the strongest revenue growth we’ve seen in several years. This growth, coupled with another quarter of record gross margin, helped more than double our earnings per share YoY,” said Chris Hufnagel, president and chief executive officer (CEO) at Wolverine Worldwide.
“We’re executing our new brand-building model at pace, and we’ve made meaningful strides in improving the profitability of the business, along with strengthening the balance sheet. I remain confident in the things we can control as we navigate continued uncertainties due to the global trade and consumer environment,” added Hufnagel. “We’re building a new company, and we’re driven by our vision to make every day better—focused squarely on our consumers and delivering value for our shareholders.”
For the third quarter (Q3) of FY25, Wolverine expects revenue between $450 and $460 million, representing growth of approximately 2.1 per cent to 4.4 per cent compared to Q3 2024 ongoing business revenue and constant currency growth of approximately 1.5 per cent to 3.8 per cent.
The gross margin is expected to be 47 per cent, up 170 bps compared to Q3 2024 gross margin. The operating margin to be approximately 7.3 per cent, down 70 bps compared to third quarter 2024 operating margin and adjusted operating margin to be approximately 8.3 per cent, up 60 bps compared to third quarter 2024 adjusted operating margin for our ongoing business.
The diluted earnings per share (EPS) in the range of $0.24 to $0.28 and adjusted diluted EPS in the range of $0.28 to $0.32. Diluted weighted average shares of approximately 81.3 million.
Due to macro-economic uncertainty and potential tariff impacts, Wolverine Worldwide has withheld its full-year 2025 guidance, added the release.
Fibre2Fashion News Desk (SG)
