The company hence raised its full-year 2026 outlook, citing a strong start to the year and progress across the business.
Wolverine Worldwide reported second-quarter (Q2) revenue of $506.4 million, up 6.8 per cent year on year, led by Merrell and Saucony.
International sales rose 10.9 per cent, while higher US tariffs pressured gross margin.
The company raised its 2026 revenue and earnings outlook, citing continued business momentum and stronger brand performance across markets.
Chris Hufnagel, president and chief executive officer, Wolverine Worldwide said, “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. We are 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 are raising our outlook for 2026.”
Merrell, Saucony lead brand performance
The Active Group generated revenue of $388.4 million, compared with $355.5 million in the prior year, a rise of 9.3 per cent, Wolverine said in its latest results release.
Work Group revenue was $105.8 million, down 1.6 per cent from $107.5 million. Other revenue was $12.2 million, up 8.9 per cent from $11.2 million.
By brand and channel, Merrell revenue rose 11.1 per cent to $175.5 million from $157.9 million. Saucony revenue increased 9.9 per cent to $158.6 million from $144.3 million.
Wolverine revenue was $39.6 million, up 6.6 per cent on both a reported and constant-currency basis. Sweaty Betty revenue declined 2.4 per cent to $40.3 million from $41.3 million.
International sales rise as tariffs weigh on margins
International revenue was $277.2 million, up 10.9 per cent from $250.0 million. Direct-to-consumer (DTC) revenue was broadly flat at $111.7 million, compared with $111.6 million, a year earlier.
Gross margin was 46.5 per cent, compared with 47.2 per cent in the prior-year quarter, with Wolverine attributing the 70-basis-point contraction mainly to higher US tariffs, partly offset by price increases and other tariff mitigation initiatives.
Operating expenses rose 2.6 per cent to $188.0 million from $183.3 million, while operating margin improved to 9.3 per cent from 8.6 per cent. Diluted earnings per share (EPS) were $0.37, up 15.6 per cent from $0.32.
On a non-GAAP basis, adjusted operating expenses were $184.9 million, up 2.4 per cent from $180.6 million, the company said. Adjusted operating margin improved to 10.0 per cent from 9.2 per cent, an 80-basis-point gain. Adjusted diluted EPS rose 14.3 per cent to $0.40 from $0.35.
Wolverine raises 2026 revenue and EPS outlook
For fiscal 2026, the company now expects revenue of about $1.980 billion to $2.000 billion, implying growth of approximately 5.6 per cent to 6.7 per cent from 2025.
The latest forecast compares with its previous revenue outlook of about $1.960 billion to $1.985 billion.
The company now expects gross margin of approximately 46.9 per cent, down 40 basis points compared with 2025, against a previous outlook of about 46.4 per cent.
It projects operating margin of approximately 9.5 per cent, up 150 basis points from 2025, and adjusted operating margin of approximately 9.9 per cent, up 90 basis points. Its earlier outlook was for operating margin of about 9.2 per cent and adjusted operating margin of about 9.5 per cent.
It raised its diluted EPS outlook to $1.48 to $1.58 from the previous range of $1.39 to $1.54, and lifted adjusted diluted EPS guidance to $1.55 to $1.65 from the previous range of $1.43 to $1.58.
Fibre2Fashion News Desk
