Wolverine Worldwide reported third‑quarter 2025 revenue of $470.3 million, up 6.8% year‑over‑year, and a gross margin of 47.5%, a 2.4‑percentage‑point lift from 45.1% in 2024. Operating margin expanded to 8.4% from 7.9% a year earlier, and GAAP diluted earnings per share were $0.30, slightly below the consensus estimate of $0.33. However, the company’s adjusted diluted EPS of $0.36 beat the $0.33 estimate by $0.03, reflecting the impact of a recent inventory accounting change from LIFO to FIFO that added $0.02 to adjusted earnings.
The Active Group drove the majority of the revenue growth, posting $352.8 million, a 10.7% increase, powered by Merrell’s $167.3 million and Saucony’s $133.1 million. In contrast, the Work Group revenue fell 2.9% to $105.9 million, and the Other segment declined 6.5% to $11.6 million. Brand‑level data show Sweaty Betty generated $44.5 million and Wolverine $45.3 million, but both brands experienced revenue declines of 3.9% and 8.2% respectively, underscoring headwinds in legacy product lines.
Margin expansion was largely attributable to supply‑chain cost initiatives, reduced promotional spend, and a modest price increase across the portfolio. The shift to FIFO inventory accounting also contributed a 50‑basis‑point boost to gross margin and a $0.02 lift to adjusted EPS, making direct year‑over‑year comparisons more complex. Operating expenses rose 12% to $183.6 million, yet the company maintained a healthy operating margin thanks to disciplined cost control and a favorable product mix.
Management guided full‑year 2025 revenue to $1.855 billion–$1.870 billion, slightly below the $1.87 billion consensus estimate, and adjusted profit guidance to $1.29–$1.34 per share, a touch below the $1.33 consensus. The company emphasized that the guidance reflects a cautious outlook for the final quarter, citing potential demand softness and the need to sustain investment in high‑margin brands. The guidance also signals confidence that the company can preserve margin expansion while navigating the inventory accounting transition.
Investors reacted to the guidance rather than the Q3 performance, focusing on the modest revenue and EPS outlook. Analysts noted that while the company beat adjusted earnings, the lower full‑year guidance dampened enthusiasm, leading to a muted market response. The guidance gap suggests management’s concern about near‑term demand uncertainty despite the strong Active Group momentum.
Chris Hufnagel, President and CEO, said, “We delivered a solid quarter with Merrell, Saucony, and Sweaty Betty all exceeding expectations. Our disciplined execution, coupled with another record gross‑margin quarter, delivered better‑than‑anticipated earnings per share.” He added that the company remains focused on executing its brand‑building model while navigating a dynamic environment and that the end of the year will test the resilience of its turnaround strategy.
Overall, Wolverine Worldwide’s Q3 results demonstrate that its core active‑wear brands are driving growth and margin expansion, but the company’s cautious full‑year outlook highlights lingering challenges in legacy segments and the impact of inventory accounting changes. The earnings beat on an adjusted basis underscores operational strength, while the guidance signals a measured view of the remaining quarter’s demand environment.
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