Wolverine Worldwide reported third quarter results that surpassed expectations across its brand portfolio, demonstrating progress in the company’s turnaround efforts. Total revenue increased 6.8% to $470.3 million, and net earnings reached $25.1 million.
“We delivered a solid quarter with Merrell, Saucony and Sweaty Betty all exceeding expectations,” said Chris Hufnagel, president and CEO of Wolverine Worldwide, in a statement. “Our disciplined execution, coupled with another record gross margin quarter, delivered better-than-anticipated earnings per share.”
The active group, which includes Merrell, Saucony, and Chaco, generated $353 million in the third quarter, up 10.7% year-over-year. This segment has been central to Wolverine’s recovery strategy.
- Merrell, the company’s largest brand, reported revenue of $167.3 million, a 5.1% increase compared to the prior year. The outdoor brand continues to benefit from steady consumer demand for hiking and trail footwear.
- Saucony delivered the strongest performance of any brand in the portfolio, with revenue surging 27% to $133.1 million. The running brand has gained traction through product innovation and expanded distribution.
- Sweaty Betty, the activewear brand acquired in 2021, recorded revenue of $44.5 million, a 3.9% decline year-over-year.
- Chaco reported revenue of $45 million, down 3.9% year-over-year, as the sandal brand continues to face category headwinds.
The work group, which includes Wolverine and Bates, generated $106 million in revenue, a 2.9% decline from the previous year. The Wolverine brand’s revenue declined 8.2% to $45.3 million, while performance across other work brands remained relatively flat.
International Markets Drive Growth
International revenue reached $242.7 million, up 13.5% compared to the prior year, accounting for roughly half of total revenue. The company’s geographic diversification has helped offset softer performance in certain domestic categories.
Geographically:
- The U.S. accounts for 51% of total revenue.
- EMEA represents 30%.
- APAC contributes 9%.
- Canada makes up 5%.
- Latin America accounts for the remaining 5%.
Growth in international markets has been driven by expanded distribution, stronger brand awareness, and favorable currency impacts in certain regions. The EMEA region has been particularly strong for the Merrell and Saucony brands.
Trail running and hiking footwear have been standout categories for Merrell, while Saucony has seen growth in both performance running and lifestyle segments.
Tariffs and Financial Outlook
Gross margin reached a record level for the quarter at approximately 47.1%, up 280 basis points compared to the prior year. The improvement was driven by product cost savings, a higher mix of full-price sales, and timing benefits from tariff mitigation efforts.
However, the margin gain was partially offset by the impact of incremental U.S. tariffs, which continue to pressure the company’s cost structure. Wolverine has employed various strategies to mitigate tariff exposure, including shifting production sources and adjusting pricing where feasible.
The company expects ongoing tariff pressures in the coming quarters and has built these impacts into its updated guidance.
For full-year 2025, Wolverine Worldwide expects revenue of approximately $1.85 billion to $1.87 billion, a 6% to 6.8% increase compared to 2024 ongoing business.
Gross margin is projected at approximately 47.1%, up 280 basis points compared to 2024. Operating margin is expected to reach approximately 7.8%, up 220 basis points year-over-year, while adjusted operating margin is forecast at approximately 8.9%, up 160 basis points.
Diluted earnings per share are projected in the range of $1.08 to $1.13, with adjusted diluted earnings per share expected between $1.29 and $1.34. At the midpoint, this represents a 50.0% increase compared to $0.88 in 2024.
The outlook reflects expectations for continued growth in the active group, modest improvement in the work group, and ongoing investments in brand building and product innovation.
“While we are pleased with our progress, we recognize there is still more work to do,” Hufnagel said. “Our teams remain focused on executing our brand-building model at pace while navigating a dynamic environment. As we approach the end of a pivotal year for Wolverine Worldwide, I’m encouraged by the improvements we’ve made across the enterprise – new strategies, new talent, new capabilities, new processes, new culture – all aimed to help us build awesome products, tell amazing stories and drive the business in the relentless pursuit to make every day better and deliver value to our shareholders.”
Kate Robertson can be reached at kate@shop-eat-surf-outdoor.com.
