Wolverine World Wide, Inc. WWW followed its second-quarter earnings beat by lifting fiscal 2026 expectations for revenues, gross margin, adjusted operating margin, adjusted earnings and operating free cash flow. Management cited stronger marketplace execution, supply-chain efficiencies and operating leverage in the higher outlook.
Merrell and Saucony remain central to that progress. Tariffs still pressure gross margin, however, so the raised outlook sets a higher bar for execution through the second half.
Wolverine World Wide, Inc. Price, Consensus and EPS Surprise
Wolverine World Wide, Inc. price-consensus-eps-surprise-chart | Wolverine World Wide, Inc. Quote
WWW's Q2 Beat Set the Stage for Higher Guidance
Second-quarter revenues rose 6.8% to $506.4 million, above management's $495-$500 million outlook. Adjusted earnings came to 40 cents per share, topping the prior 35-38-cent range and increasing 14.3% year over year.
Adjusted operating margin expanded 80 basis points to 10%. The improvement came even as gross margin declined 70 basis points to 46.5%, as revenue growth and disciplined operating expense management helped offset tariff pressure.
Wolverine Lifts Revenue and EPS Expectations
Fiscal 2026 revenue guidance increased to $1.98-$2 billion from $1.96-$1.985 billion. The updated range implies reported revenue growth of about 6.2% at the midpoint.
Adjusted earnings guidance rose to $1.55-$1.65 per share from $1.43-$1.58. Wolverine also raised its Active Group constant-currency revenue outlook to high-single-digit growth from mid-single digits.
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WWW Targets More Margin Leverage Despite Tariffs
Full-year gross-margin guidance increased to approximately 46.9% from 46.4%, while adjusted operating-margin guidance moved to about 9.9% from 9.5%. Management tied the gross-margin revision to stronger marketplace execution, supply-chain efficiencies and modestly lower tariffs.
The outlook assumes existing tariff rates remain in place for the rest of 2026 and excludes any refund related to roughly $36 million of previously paid IEEPA tariffs. The second quarter carried an approximately 310-basis-point unmitigated tariff impact, making mitigation important to reaching the higher margin targets.
Saucony Gives Wolverine a Bigger Growth Engine
Saucony revenues increased 9% in constant currency to $158.6 million in the second quarter, building on 40% growth a year earlier. Management raised the brand's fiscal 2026 outlook to mid-teens growth as Saucony gained share at U.S. run specialty and expanded consumer interest internationally.
Deckers Outdoor Corporation DECK reported a 7.7% increase in HOKA brand net sales for the quarter ended June 30, 2026. NIKE, Inc. NKE reported fiscal fourth-quarter revenues down 1% for the period ended May 31, 2026, illustrating uneven growth across major athletic-footwear players.
WWW's Higher Cash Flow Outlook Strengthens the Plan
Operating free cash flow guidance increased to $115-$130 million from $105-$120 million, while capital expenditures remain expected at approximately $20 million. That gives Wolverine more room to fund growth priorities while continuing to repair the balance sheet.
Net debt fell $125 million year over year to $443 million, inventory declined 17% to $269.3 million and revolver borrowings dropped to $54 million from $135 million. Management expects cash generation to support further debt reduction alongside investment in brands and capabilities.
WWW's Ratings Echo the Improving Earnings Trend
The raised outlook makes Wolverine's second-half setup more constructive, but execution remains central. Brand growth must keep translating into operating leverage while tariff mitigation and supply-chain actions support the higher margin targets.
WWW currently carries a Zacks Rank #2 (Buy), with a Value Score of A, Growth Score of A, VGM Score of A and Momentum Score of B. These Style Scores complement the Zacks Rank across value, growth and momentum characteristics, with A or B scores viewed favorably alongside top Zacks Ranks. The combination supports a positive near-term profile without guaranteeing performance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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