Wolverine Worldwide President and CEO Chris Hufnagel said the parent of the Merrell, Saucony, Sweaty Betty, and Wolverine brands exceeded expectations across all key metrics in the fourth quarter, finishing a solid year for the business.

Revenues for the fiscal fourth quarter increased 4.6 percent, or 3.1 percent in constant-currency (cc) terms, to $517.5 million, compared to $494.7 million in the prior-year Q4 period.

Active Group revenues, which includes Merrell, Saucony, Chaco, and Sweaty Betty, jumped 12.4 percent year-over-year (y/y) to $373 million in 2025.

Saucony brand revenue increased 26.4 percent to $125.9 million in the fourth quarter, representing growth of 24.2 percent in constant-currency (cc) terms. Company CFO Taryn Miller said the increase was driven by strong growth in both the U.S. and international markets.

Merrell brand revenue increased 5.9 percent in the quarter, or 4.6 percent in constant-currency (cc) terms. Miller said the increase for the period was “driven by strong wholesale performance in EMEA and in the U.S., supported by continued market share gains and its key city strategy.”

Sweaty Betty revenue increased 8.8 percent to $68.9 million in the fourth quarter, but that level of growth tapped into some upside from FX rate variances due to the weaker U.S. dollar. In constant-currency (cc) terms, Q4 sales rose 4.6 percent year-over-year, driven by growth in EMEA, DTC, and Wholesale.

Work Group revenues, which includes the Wolverine brand, and well as the Cat Footwear, Bates, Harley-Davidson brands, fell 11.3 percent (-11.7 percent cc) year-over-year to $134 million in Q4 2025.

Wolverine brand reportedly finished the year a little better than the company anticipated entering the fourth quarter, with revenue down 10.5 percent in both reported and cc terms to $55.8 million for the quarter.

Other revenue declined 9.2 percent in reported currency.

DTC (direct-to-consumer) sales grew 5.9 percent (+3.8 percent cc) year-over-year to $160.7 million in Q4 2025.

International sales increased 9.8 percent (+6.8 percent cc) year-over-year to $277.4 million in the fourth quarter.

“Our biggest brands are growing around the world, direct-to-consumer continues to improve, earnings per share increased meaningfully year-over-year, and I believe we’re finding our footing where we’ve underperformed,” Hufnagel summarized. “I’m pleased with our progress in transforming the company and encouraged by the momentum we’ve carried into 2026. We’re focused squarely on executing our brand-building model with pace and distinction—building awesome products, telling amazing stories, and driving the business each day.”

Editor’s Note: Article links for more detailed brand reporting from SGB Executive can be found at the bottom of this article.

Fourth Quarter Revenue Summary

Fourth Quarter Profitability & Expense Summary
Gross margin was 47.0 percent of revenue in the fourth quarter, compared to 43.6 percent in the prior-year Q4 period. The increase was said to be primarily due to the benefit of product cost savings, a favorable mix shift toward more full-price sales, and the positive impact from recent price increases, partially offset by higher U.S. tariffs.

Operating margin amounted to 9.4 percent of revenue in Q4, up 180 basis points from 7.6 percent in the prior-year Q4 period. Adjusted operating margin was 11.0 percent of revenue in Q4, compared to 9.9 percent in the year-ago period.

Diluted earnings per share amounted to 38 cents per share in the fourth quarter, compared to 28 cents per share in the 2024 Q4 period. Adjusted EPS was calculated at 45 cents per diluted share in Q4, compared to 40 cents per diluted share in the prior-year Q4 period.

Full Year Financial Summary

Balance Sheet Summary
(As of January 3, 2026 as compared to As of December 28, 2024)

  • Cash and cash equivalents were $206 million, an increase of $54 million, or 35.6 percent.
  • Inventory was $274 million, an increase of $26 million, or 10.7 percent.
  • Net Debt was $415 million, a decrease of $81 million, or 16.2 percent.

Capital Allocation
During the fourth quarter, the company repurchased approximately 0.9 million shares of its common stock for a total of approximately $15 million at a weighted average price paid per share of $16.13. As of January 3, 2026, the company had approximately $135 million remaining under its stock repurchase authorization.

Outlook
The company said its full-year fiscal 2026 outlook reflects the impact of foreign currency. Additionally, fiscal 2026 is a 52-week year and fiscal 2025 was a 53-week year, which will affect annual comparisons.

Company CFO Taryn Miller said that full-year 2026 revenue is expected to be in the range of $1.96 billion to $1.985 billion, representing reported growth of approximately 5.2 percent at the midpoint. This includes an estimated $14 million foreign currency benefit compared to the prior year.

Constant currency growth is expected in the range of approximately 3.8 percent to 5.1 percent, and constant-currency growth of approximately 4.5 percent to 5.8 percent excluding the impact of the 53rd week in 2025.

Active Group revenue is expected to be up in the high single digits in 2026 compared to full-year 2025.

Work Group revenue is expected to be down in the mid single digits in 2026 compared to full-year 2025.

“The absence of the 53rd week is expected to be an approximately 70-basis-point headwind to revenue growth, with the impact largely concentrated in our DTC business,” Miller added.

In terms of phasing for 2026, Miller said the company expects revenue growth to be slightly more first half-weighted with the majority of the foreign currency benefit expected in the first quarter, while the fourth quarter comparison reflects the absence of the 53rd week that benefited 2025.

She said the 2026 guidance reflects the continuation of the tariff rates that went into effect in August 2025.

“Based on that assumption, we now estimate the full year unmitigated impact from higher tariffs to be approximately $60 million or an incremental $50 million versus 2025. Any tariff rate reduction would impact the second half of the year,” she noted.

“Accordingly, if the recently announced 15 percent tariff rate were to be implemented and remain in place through the end of 2026, we estimate it would reduce the 2026 tariff impact by approximately $5 million to $7 million relative to our current guidance,” she added. “We are closely monitoring recent trade policy developments and we will evaluate potential changes as clarity improves.”

Gross margin is expected to be approximately 46.0 percent of sales, down 130 basis points compared to 2025. Miller said the decline is being driven by higher tariff costs, an estimated 300-basis-point unmitigated impact, partially offset by pricing and other mitigation actions, a favorable mix shift towards more full price sales and product cost savings.

Adjusted operating margin is expected to be approximately 9.1 percent of net sales, up 10 basis points compared to 2025, said to reflect the impact of higher tariffs on gross margin that is anticipated to be more than offset by operating leverage from revenue growth, cost discipline across the organization and continued efficiency improvements.

“We continue to make disciplined investments in our brands, primarily in marketing and key capabilities,” Miller added.

Interest and other expenses are projected to be approximately $23 million in 2026, down from $28 million in 2025 due to the reduction in net debt. The effective tax rate is projected to be approximately 18 percent for the year.

As a result, adjusted diluted earnings per share is expected to be in the range of $1.35 to $1.50 per share for 2026 compared to $1.35 in 2025.

Operating free cash flow is expected to be in the range of $105 million to $120 million for 2026, with approximately $20 million of capital expenditures.

Diluted weighted average shares of approximately 81.5 million.

First Quarter Outlook
First quarter 2026 revenue is expected to be in the range of $445 million to $450 million, representing reported growth of approximately 8.5 percent at the midpoint compared to the prior year. On a constant-currency basis, revenue is expected to increase 5.1 percent at the midpoint, with most of the full year foreign currency impact anticipated to occur in the first quarter.

Active Group revenue is expected to be up in the high-single digits y/y in the first quarter.

Work Group revenue is expected to be down in mid-single digits y/y in Q1 2026.

Gross margin in the first quarter is expected to be approximately 47.5 percent of sales, down 10 basis points compared to the 2025 Q1 period. This includes an approximate 260-basis-point unmitigated tariff impact. First quarter gross margin is expected to be higher than the full year average, as Q1 typically benefits from favorable channel mix, according to Miller.

“As the year progresses, tariff impacts are expected to become more pronounced, while the year-over-year benefit from mitigation actions implemented in the second half of last year anticipated to moderate,” the CFO detailed.

Adjusted operating margin is expected to be approximately 6.6 percent of net sales, an increase of 30 basis points compared to Q1 last year, as pricing, product cost savings, and SG&A leverage are anticipated to more than offset tariff headwinds.

Adjusted diluted earnings per share is expected to be in the range of 20 cents to 22 cents, compared to 19 cents in Q1 last year.

“In summary, 2025 was a year of meaningful progress,” Miller continued. “We delivered revenue growth, expanded margins, generated strong cash flow, and strengthened the balance sheet, while continuing to invest in our brand-building model and the capabilities that support consistent execution across the portfolio.We look ahead to 2026, we recognize the operating environment remains dynamic.”

Image courtesy Saucony / Wolverine Worldwide, Inc.

See below for article links for the Saucony, Merrell and Sweaty Betty brands with expanded, deeper coverage from SGB Executive:

EXEC: Saucony Tapped into Both Performance and Lifestyle Sales to Drive 2025

EXEC: Merrell Brand Celebrates 40 Years with a Solid 2025 but H2 Gain Lags H1 Growth

EXEC: Sweaty Betty International Expansion in 2025 Partially Offset by Reset in U.S. Market

EXEC: Wolverine Brand Expected to See Transition Year, Flat Sales in 2026