Wolverine World Wide (WWW) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue rose 11% year-over-year to $457.6–$458 million, exceeding expectations, led by strong performances from Merrell and Saucony, and broad-based growth across regions and channels.

• Adjusted diluted EPS increased over 30% to $0.25, with net earnings up 66.9% to $20.2 million; profitability improved due to disciplined cost management and continued investment in talent, innovation, and marketing.

• All brands met or exceeded outlook, with Merrell up 12.7%–13.7%, Saucony up 15%–20.1%, Sweaty Betty up 1.5% (excluding U.S. reset, low single-digit growth), and Work Group up 1.2% or flat.

• Strategic initiatives advanced, including e-commerce modernization, AI integration, and SKU rationalization, positioning the company for sustained global growth.

• Management highlighted effective execution of strategies and resilience in a dynamic operating environment.

Financial highlights

• Q1 2026 revenue reached $457.6–$458 million (+11% YoY); gross margin held steady at 47.6% despite a 270 bps tariff headwind.

• Adjusted operating margin expanded by 140 bps to 7.7%; operating profit increased 61.4% to $33.9 million.

• Adjusted diluted EPS was $0.25 (+31.6%–32% YoY); diluted EPS was $0.24 (+60% YoY).

• Net debt at quarter-end was $519 million, down 14.1% or $85 million YoY; inventory stable at $280 million.

• Cash and cash equivalents at $119.6–$120 million, up 12.3% YoY.

Outlook and guidance

• FY2026 revenue expected at $1.96–$1.985 billion, up 4.6%–5.9% YoY, including a $14 million FX benefit.

• Gross margin guidance raised to 46.4%; adjusted operating margin to 9.5%; adjusted EPS to $1.43–$1.58.

• Q2 2026 revenue expected at $495–$500 million (+4.9% YoY); Active Group to grow high single digits, Work Group to be flat or decline slightly.

• Operating free cash flow projected at $105–$120 million; capex at $20 million.

• Effective tax rate expected at 18.0%.