Wolverine World Wide, Inc. raised its earnings and sales guidance for the year after reporting second-quarter results exceeded expectations due to continued robust gains at Merrell and Saucony. Adjusted EPS in the second quarter grew 14.3 percent on a 6.8 percent revenue gain, with sales expanding 11 percent at Merrill and 9.9 percent at Saucony.

Sales in the quarter of $506.4 million beat Wall Street’s consensus estimate of  $501.69 million. Adjusted EPS of 40 cents topped the consensus estimate of 38 cents.

“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 of Wolverine Worldwide. “We’re 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’re raising our outlook for 2026.”

Gross margin was 46.5 percent compared to 47.2 percent in the prior year, primarily reflecting the impact of higher U.S. tariffs, partially offset by price increases and other tariff mitigation initiatives.

Balance Sheet  (July 4, 2026 as compared to June 28, 2025)

  • Cash and cash equivalents were $159 million, an increase of $18 million, or 12.4 percent.
  • Inventory was $269 million, a decrease of $55 million, or 17.0 percent.
  • Net Debt was $443 million, a decrease of $125 million, or 22.0 percent.

Full-Year 2026 Outlook

The company’s outlook reflects the impact of foreign currency and excludes any benefit from potential tariff refunds. Additionally, fiscal 2026 is a 52-week year and fiscal 2025 was a 53-week year, which will affect annual comparisons.

For fiscal year 2026, the company currently expects:

  • Revenue to be approximately $1.980 billion to $2.000 billion, representing growth of approximately 5.6 percent to 6.7 percent compared to 2025, constant currency growth of approximately 4.9 percent to 5.9 percent, and constant currency growth of approximately 5.6 percent to 6.6 percent excluding the impact of the 53rd week in 2025. This compares to the previous outlook for revenue of approximately $1.960 billion to $1.985 billion.
  • Gross margin to be approximately 46.9 percent, down 40 basis points compared to 2025. This compares to the previous outlook for gross margin of approximately 46.4 percent.
  • Operating margin to be approximately 9.5 percent, up 150 basis points compared to 2025, and adjusted operating margin to be approximately 9.9 percent, up 90 basis points compared to 2025. This compares to the previous outlook for operating margin of approximately 9.2 percent and adjusted operating margin of approximately 9.5 percent.
  • Effective tax rate to be approximately 18.0 percent, unchanged from the previous outlook.
  • Diluted earnings per share in the range of $1.48 to $1.58 and adjusted diluted earnings per share in the range of $1.55 to $1.65. This compares to the previous outlook for diluted earnings per share in the range of $1.39 to $1.54 and adjusted diluted earnings per share in the range of $1.43 to $1.58.
  • Diluted weighted average shares of approximately 82.0 million, unchanged from the previous outlook.

Image courtesy Merrell