Wolverine World Wide (WWW) Q2 2025 earnings summary

Executive summary

• Second quarter revenue grew 11.6% year-over-year to $474.2 million, driven by strong Active Group performance, especially Saucony (up 41.5–42%) and Merrell (up 10.7–11%), while Work Group and Sweaty Betty showed sequential improvement despite declines.

• Gross margin reached a record 47.2%, up 410 basis points year-over-year, attributed to healthier sales mix, lower promotional activity, and supply chain cost initiatives.

• Adjusted diluted EPS rose 133% to $0.35, more than doubling the prior year, with net earnings up 85.9–88.7% to $26.8–$29.0 million.

• Ongoing business results exclude the divested Sperry business and China joint ventures, with new global licensing agreements for kids' footwear and apparel.

• Management emphasized sustainable, profitable growth, brand building, and successful execution of a new brand model.

Financial highlights

• Q2 revenue was $474.2 million, up 11.5–11.6% year-over-year, exceeding guidance.

• Gross margin reached 47.2%, up 410 basis points year-over-year.

• Adjusted operating margin was 9.2%, up 290 basis points year-over-year.

• Adjusted diluted EPS was $0.35, up from $0.15.

• Net debt at quarter end was $568 million, down $99 million or 14.8–15% from last year.

Outlook and guidance

• Q3 revenue expected between $450–$460 million, up 2.1–4.4% year-over-year at midpoint.

• Gross margin expected at ~47%, up 170 basis points year-over-year.

• Adjusted operating margin expected at 8.3%, up 60 basis points; adjusted EPS $0.28–$0.32.

• No full-year 2025 outlook provided due to macroeconomic and tariff uncertainties.

• Management expects cash flow from operations to be sufficient for working capital and growth needs.