Wolverine World Wide Q2 Earnings Call Highlights

Wolverine World Wide NYSE: WWW reported second-quarter fiscal 2026 results that exceeded its outlook, led by continued growth at its Merrell and Saucony brands, while raising its full-year revenue, margin, earnings and operating free-cash-flow guidance.

Revenue totaled $506 million, up 7% from a year earlier on a reported basis and 6% on a constant-currency basis. Adjusted diluted earnings per share rose 14% to $0.40, above the company’s prior outlook of $0.35 to $0.38. Adjusted operating margin expanded 80 basis points year over year to 10%.

President and Chief Executive Officer Christoph Hufnagel said the company’s results tracked ahead of expectations as its brand-building strategy supported consumer interest, market-share gains and seven consecutive quarters of year-over-year growth.

Merrell and Saucony Drive Active Group Growth Active Group revenue increased 8% on a constant-currency basis in the quarter. Merrell revenue grew 10%, while Saucony revenue increased 9% on top of 40% growth in the prior-year quarter.

Merrell posted growth across all regions, with particularly strong international gains, according to Hufnagel. In the U.S. hike category, the brand gained triple-digit basis points of market share and had three styles among the top 10. Its Moab 3 and Moab Speed 2 franchises each generated double-digit growth, while its Agility Peak 6 trail-running franchise also grew double digits globally compared with the comparable first season of its predecessor. The company said Merrell’s direct-to-consumer revenue declined during the quarter because it deliberately shifted marketing spending toward upper-funnel brand-building activity. Hufnagel said the company expects the move to support both wholesale and direct-to-consumer performance over the longer term. Merrell’s lifestyle business represented less than one-quarter of total brand sales, Hufnagel said during the question-and-answer session. The company sees an opportunity to expand the brand’s outdoor-lifestyle business, especially with women, while maintaining its position in performance outdoor products.

Saucony recorded growth across both performance and lifestyle running, as well as in wholesale and direct-to-consumer channels. The company cited strong trends in Europe, particularly from its key-city strategy in London, Berlin and Paris, which includes race sponsorships, community activations and retail efforts. In U.S. run specialty, Saucony gained market share during the quarter. Hufnagel said the brand ranked among the five most-worn brands at the Boston and London marathons this spring, including second among women at the Boston Marathon. New products included the Endorphin Elite 3, Triumph 24 and Hurricane 26. The company raised its full-year Saucony outlook to mid-teens growth, from a prior low- to mid-teens range. Hufnagel said the brand’s growth has become more diversified across regions, channels and product categories. Saucony also plans to test a women’s apparel capsule, developed with Sweaty Betty’s product team, in stores and online early next year.

Sweaty Betty and Work Group Show Early Progress Sweaty Betty revenue declined 3% in the quarter, reflecting its ongoing reset of the U.S. business. Excluding the effect of that reset, the brand grew about 3%, Hufnagel said. U.K. direct-to-consumer revenue increased by the mid-single digits, while international wholesale revenue rose by strong double digits. Hufnagel said Sweaty Betty has expanded beyond leggings into categories including bottoms, mid-layers and outerwear....