Revenue increased 7.5 per cent year on year (YoY) to $505.4 million in the third quarter (Q3) ended October 3, 2026. Net earnings attributable to Wolverine World Wide surged to $65.8 million from $25.1 million a year earlier, while operating profit rose to $89.7 million from $39.6 million. Diluted earnings per share (EPS) increased to $0.78 from $0.30, and adjusted diluted EPS rose to $0.79 from $0.36. It delivered its eighth consecutive quarter of growth, underscoring how its transformation efforts are translating into sustained business expansion.
Wolverine World Wide has raised its FY26 outlook after third-quarter revenue rose 7.5 per cent to $505.4 million and net earnings attributable to the company reached $65.8 million.
Operating margin expanded to 17.7 per cent, aided by $35.3 million in IEEPA tariff refunds.
The footwear and apparel group now expects FY26 revenue of $2.00-$2.01 billion and adjusted diluted EPS of $1.95-$1.99.
“We delivered a strong third quarter performance, led by our two largest brands and disciplined execution across the business,” said Chris Hufnagel, president and chief executive officer, Wolverine Worldwide. “This quarter, now our eighth consecutive quarter of growth, is further evidence that our transformation story is also a growth story.”
Active Group and international sales drive growth
Active Group revenue rose 9.9 per cent to $387.8 million, while Work Group revenue edged up 0.9 per cent to $106.9 million. Other revenue declined 7.8 per cent to $10.7 million, Wolverine World Wide said in a press release.
Among brands, Saucony revenue climbed 19.4 per cent to $158.9 million and Merrell revenue increased 6.5 per cent to $178.2 million. Wolverine brand revenue fell 4.1 per cent to $43.5 million, while Sweaty Betty revenue declined 7 per cent to $41.4 million.
International revenue grew 11.7 per cent to $271.2 million, and direct-to-consumer revenue increased 2.2 per cent to $109.1 million. On a constant-currency basis, total revenue rose 7.7 per cent, with Active Group advancing 10.2 per cent and international sales increasing 12.1 per cent.
Tariff refunds lift margins and earnings
The gross profit increased to $276.1 million from $223.2 million, lifting gross margin by 710 basis points (bps) to 54.6 per cent. Operating margin expanded by 930 bps to 17.7 per cent, while adjusted operating margin rose by 870 bps to 17.8 per cent.
During the quarter, the company received $35.3 million in refunds, including interest, relating to tariffs paid under the International Emergency Economic Powers Act (IEEPA). The refunds added about 640 bps each to gross margin, operating margin and adjusted operating margin, and contributed approximately $0.31, net of tax, to both diluted and adjusted diluted EPS.
Cash and cash equivalents stood at $148.1 million as of October 3, compared with $133.9 million a year earlier. Inventory decreased 4.9 per cent to $278.2 million, while net debt fell 26.4 per cent to $399 million.
Wolverine lifts FY26 revenue and earnings outlook
For FY26, Wolverine now expects revenue of approximately $2.00-$2.01 billion, representing reported growth of about 6.7-7.2 per cent, compared with its earlier forecast of $1.98-$2.00 billion. Constant-currency revenue growth is projected at 5.9-6.4 per cent, or 6.6-7.2 per cent excluding the impact of the 53rd week in fiscal 2025.
The company expects gross margin of about 48.7 per cent, operating margin of about 11.5 per cent and adjusted operating margin of about 11.8 per cent. It forecast diluted EPS of $1.88-$1.92 and adjusted diluted EPS of $1.95-$1.99, including an estimated $0.32 benefit from IEEPA tariff refunds. The outlook also assumes an effective tax rate of about 19 per cent and diluted weighted average shares of approximately 82.5 million.
Fibre2Fashion News Desk (SG)
