Wolverine raises 2026 outlook 9.8% as Saucony, Merrell drive growth

Wolverine World Wide raised its 2026 revenue and earnings guidance after second-quarter sales of $506.4 million beat estimates, sending shares up 9.8 percent.

"Our team delivered another good quarter, ahead of our expectations, led again by Merrell and Saucony, along with more progress in Sweaty Betty and Wolverine," Chris Hufnagel, president and chief executive officer at Wolverine Worldwide, said.

Q2 revenue rose 6.8 percent from $474.2 million a year earlier, topping the $502 million consensus. Adjusted diluted EPS of $0.40 beat the $0.38 estimate, while net income reached $31.2 million.

The company now expects fiscal 2026 revenue of $1.98 billion to $2.00 billion, up from a prior $1.96 billion to $1.985 billion range, with adjusted diluted EPS of $1.55 to $1.65. Shares traded at $20.85, up from $18.06 before the release.

Metric	Actual	Consensus	Beat/Miss
Revenue	$506.4M	$502M	+0.9%
Adjusted EPS	$0.40	$0.38	+5%

Merrell and Saucony led the quarter. Merrell revenue rose 11.1 percent to $175.5 million, while Saucony climbed 9.9 percent to $158.6 million, together driving the Active Group to $388.4 million, up 9.3 percent. Work Group revenue slipped 1.6 percent to $105.8 million, and Sweaty Betty fell 2.4 percent to $40.3 million.

International revenue rose 10.9 percent to $277.2 million, while direct-to-consumer sales were flat at $111.7 million. Gross margin contracted 70 basis points to 46.5 percent, which management attributed to higher US tariffs, partly offset by price increases and mitigation efforts.

Operating margin improved to 9.3 percent from 8.6 percent, and adjusted operating margin rose to 10.0 percent from 9.2 percent. For the full year, Wolverine lifted its operating margin outlook to about 9.5 percent from 9.2 percent and its gross margin view to about 46.9 percent from 46.4 percent.

On the earnings call, analysts pressed management on the running market's competitiveness and Saucony's outlook. Hufnagel said he remained "bullish on Saucony," citing broad-based global growth and a strong product pipeline, while CFO Taryn Miller said inventory levels and planned receipts were sufficient to support the higher revenue outlook.

The guidance raise signals management expects the momentum from Merrell and Saucony to hold through the second half. Investors will watch third-quarter results for evidence that margin gains persist as tariff costs and wholesale concentration remain the key risks.

This article is for informational purposes only and does not constitute investment advice.