Wolverine Worldwide’s two biggest brands, Saucony and Merrell, reported strong results for the fourth quarter and full year and are heading into 2026 with ambitions to grow beyond their performance roots.
Saucony posted a record year, Merrell extended its market share gains in hiking, and the parent company beat its own expectations across nearly every key metric.
“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,” said CEO Chris Hufnagel about the company’s turnaround on Thursday’s earnings call. “I’m pleased with our progress in transforming the company and encouraged by the momentum we’ve carried into 2026.”
Active Group Leads Turnaround
Revenue in the company’s active group, which includes Merrell, Saucony, Sweaty Betty, and Chaco, increased 12% to $373 million in the fourth quarter and by 13% to $1.4 billion for the full year.
By brand:
- Saucony Q4 revenue is $125.9 million, up 26.4% year-over-year (24.2% in constant currency); full-year revenue is $533.1 million, up 31.1% year-over-year (30.1% in constant currency).
- Merrell Q4 revenue is $173.1 million, up 5.9% year-over-year (4.6% constant currency); full-year revenue is $648.9 million, up 8.4% year-over-year (7.6% constant currency).
- Sweaty Betty Q4 revenue is $68.9 million, up 8.8% year-over-year (4.6% constant currency); full-year revenue is $192.8 million, down 3.1% year-over-year (down 6.1% constant currency).
Company-wide Results
Wolverine Worldwide‘s total revenue for the year was $1.874 billion, a 6.8% increase year-over-year (6% in constant currency) and above the company’s guidance range of $1.855 billion to $1.870 billion. Q4 revenue was $517.5 million, a 4.6% increase from the prior year.
Full-year gross margin expanded 300 basis points to 47.3%, driven by product cost savings and a shift toward more full-price sales, partially offset by higher tariff costs. Adjusted operating margin improved 170 basis points to 9%. Adjusted diluted earnings per share rose 53.4% to $1.35, compared to $0.88 in 2024. On a reported basis, diluted EPS more than doubled, from $0.55 to $1.14.
Net earnings attributable to Wolverine Worldwide were $95.8 million for the year, up from $45.2 million in 2024. The company ended the year with $206 million in cash, a $54 million increase, and reduced net debt by $81 million to $415 million.
DTC and Wholesale Results
Wholesale revenue increased 3% in Q4 on a constant currency basis, driven by international growth. U.S. wholesale was approximately flat as the Wolverine brand and the broader work group continue their marketplace reset.
DTC revenue improved in the fourth quarter, increasing 4%, with strength in EMEA and solid performance in the U.S. at Merrell and Saucony. The company’s 53rd fiscal week, an extra week compared to the prior year, provided a benefit that was largely concentrated in the DTC channel.
For the year, DTC revenue decreased 1.7% (3.1% in constant currency) to $475 million. In 2025, 75% of Wolverine Worldwide’s revenue came from wholesale and 25% from DTC.
Looking to 2026, CFO Taryn Miller said the company expects growth in both wholesale and DTC, with plans to open more of its own stores.
The company plans to continue its key city strategy for Merrell and Saucony, with Saucony planning to open a new pioneer store in Paris later this year, adding to locations in London and Tokyo. Merrell plans to add London and New York to its key city strategy, building on the flagship already operating in Tokyo’s Harajuku district.
Regional Performance
International revenue was $978.1 million for the full year, a 13.5% increase year-over-year. In Q4, international revenue was $277.4 million, a 9.8% increase.
In the U.S., Saucony had strong results in both performance and lifestyle, though U.S. lifestyle is expected to contract in 2026 as the company sees benefits from a period of expanded distribution and optimizes its door count.
Both Merrell and Saucony posted healthy international performance, particularly in EMEA. Hufnagel highlighted China and Asia Pacific as areas of growing strength for Saucony.
Saucony’s Record Year
Saucony’s 2025 was its best year on record, with growth across categories, channels, and regions. Performance, which makes up the majority of the business, was up more than 20% in Q4, while lifestyle grew faster. The brand’s “core four” performance franchises, the Ride, Guide, Hurricane, and Triumph, all contributed.
On the lifestyle side, the brand leaned into cultural moments. A December collaboration with rapper Westside Gunn, released at Art Basel in partnership with retailer Kith, featured the Pro Grid Triumph 4 and drove record traffic to saucony.com, selling out in minutes.
The headline launch heading into 2026 is the Endorphin Azura, a lightweight super trainer priced at $150. The shoe launched 25 days before the earnings call and has already exceeded sales forecasts on saucony.com, with strong retail sell-through both domestically and internationally.
“The shoe represents a meaningful incremental opportunity for the brand,” Hufnagel said, “and has been highly anticipated and well received by the market and consumers at this early stage.”
Three of the top five styles in the fourth quarter were Saucony “retro tech” styles, Hufnagel said, which speaks to the fashion and lifestyle set that the brand will continue to focus on in 2026.
“We are thinking about where the world moves next, and then the diversification of that product line,” Hufnagel said. “I’ll be very honest. We’re really lucky that Saucony is a 100-plus-year-old brand that has an amazing archive from which to pull to react to trends. Not all brands have that privilege, and we do.”
For 2026, Saucony expects low-to-mid-teens growth, fueled by the Azura launch, refreshes of all four core franchises, starting with the Ride 19, and continued marketing investment including new race sponsorships such as the Berlin 10K and Philadelphia Love Run Half Marathon. U.S. lifestyle is expected to operate in roughly 1,000 doors in the first half of 2026, down from the expanded footprint of the past two years.
Merrell: Market Share Gains, New Products
Merrell revenue grew 5% in Q4 with balanced gains across regions and channels. DTC returned to growth, up mid-single digits in the quarter, even as the brand reduced promotions. The brand took market share again in the U.S. hiking category.
The Moab Speed nearly doubled its sell-through year-over-year at U.S. retail in Q4. The Agility Peak 5 contributed growth in trail running, and the Wrap lifestyle collection and classic Jungle Moc both delivered solid results.
The Agility Peak 6, launched just weeks before the earnings call, is tracking ahead of expectations. A new style, the Speed Arc Peak, is slated for later in summer 2026, leveraging the brand’s “visually disruptive” speed arc technology.
For 2026, Merrell has secured title sponsorships for the Skyrunner World Series and U.S. national series and plans to launch a new global marketing platform that unifies its storytelling around the brand’s outdoor mission. The brand also celebrates its 45th anniversary this year.
Mid-single-digit revenue growth is expected in 2026, supported by new product launches and expanded DTC.
Sweaty Betty and Chaco
Sweaty Betty ended 2025 with a run of quarterly sequential improvement, growing 8.8% in Q4 on a reported basis. The UK business strengthened through increased product newness, outerwear strength and expanded international wholesale distribution. The brand also saw gains in brand health metrics, particularly with younger consumers.
The U.S. business remains in transition. After becoming overly promotional following Wolverine’s acquisition, the brand is pulling back to a more premium, full-price DTC model. That reset is expected to weigh on results in the near term. For 2026, Sweaty Betty is expected to decline low-single-digits overall, with EMEA DTC growth and expanding international distribution more than offset by the ongoing U.S. transition and the absence of the 53rd fiscal week.
The brand’s new “Born Sweaty” campaign launched just before the earnings call, and Hufnagel described it as a return to “distinctly sweaty Betty” storytelling rooted in the brand’s “rebellious roots.”
Chaco is part of the active group segment but was not broken out separately in the earnings release.
Work Group Declines
The Wolverine work group, which includes the Wolverine, Bates, HyTest and Harley-Davidson footwear brands, reported a decline in both the quarter and the full year. Revenue decreased 11.3% in Q4 to $134 million, and dropped 7.3% for the full year to $422.2 million.
The namesake Wolverine brand, which accounts for the majority of work group revenue, declined about 11% in Q4. Hufnagel acknowledged the brand’s turnaround has taken longer than expected, but cited encouraging signs, such as the Rancher collection and work boot market share growth in Q4.
For 2026, Wolverine brand revenue is expected to be approximately flat as the brand continues its marketplace recalibration. Work group revenue overall is also expected to be approximately flat.
Tariffs: A Growing Headwind
Wolverine Worldwide estimates an unmitigated 2026 tariff impact of approximately $60 million based on tariff rates that went into effect in August 2025.
Gross margin for 2026 is projected at approximately 46.0%, down 130 basis points from 2025. The tariff impact is expected to represent a roughly 300-basis-point headwind, partially offset by price increases, product cost savings and a continued shift toward full-price sales. Miller noted the impact will be more pronounced as the year progresses, with Q1 carrying an estimated 260 basis points of unmitigated tariff headwinds.
The company is monitoring policy changes but said it is not planning material changes to inventory purchasing practices at this time.
2026 Outlook
Wolverine Worldwide expects 2026 revenue in the range of $1.960 billion to $1.985 billion, representing approximately 5.2% growth at the midpoint. Adjusted diluted EPS is forecast at $1.35 to $1.50. The company is not assuming any future share repurchases in its outlook.
For Q1 2026, the company expects revenue of $445 million to $450 million, up approximately 8.5% year-over-year.
