Merrell and Saucony lead Wolverine Worldwide's 6.8 percent Q2 revenue growth

US footwear and apparel group Wolverine World Wide, Inc. (Wolverine Worldwide) has announced its financial results for the second quarter ended July 4, 2026 with revenue increase of 6.8 percent to 506.4 million dollars compared to the prior-year period, representing a 6.1 percent increase in constant currency.

The growth was driven by performance in the company's Active Group segment, led by footwear brands Merrell and Saucony.

Following the second-quarter results, the Rockford, Michigan-based company raised its full-year 2026 financial guidance for revenue, gross margin, operating margin, and earnings per share.

Chris Hufnagel, president and chief executive officer of Wolverine Worldwide, stated: “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. We're executing our strategies, elevating our brands, and driving consistent, profitable growth. Based on our strong start to the year and the progress we're seeing across the business, we're raising our outlook for 2026.”

Active Group leads brand performance

Segment revenue in the Active Group rose 9.3 percent to 388.4 million dollars, compared to 355.5 million dollars in the second quarter of 2025, or 8.5 percent in constant currency.

In individual brand performance Merrell revenue grew 11.1 percent to 175.5 million dollars, up 10.3 percent in constant currency, Saucony revenue increased 9.9 percent to 158.6 million dollars, representing 9 percent constant currency growth, Wolverine revenue gained 6.6 percent to 39.6 million dollars on both a reported and constant currency basis, while Sweaty Betty revenue declined 2.4 percent to 40.3 million dollars, down 2.7 percent in constant currency.

The Work Group segment reported a revenue decline of 1.6 percent to 105.8 million dollars, down 2.1 percent in constant currency. Other revenue contributed 12.2 million dollars, reflecting an 8.9 percent increase.

Geographically, international revenue increased 10.9 percent to 277.2 million dollars, or 9.6 percent in constant currency. Direct-to-consumer (D2C) sales remained stable at 111.7 million dollars, up 0.1 percent reported and down 0.1 percent in constant currency.

Tariff impact on gross margin

Gross margin for the second quarter stood at 46.5%, compared to 47.2% in the prior year. The 70 basis point decline primarily reflected the impact of higher US tariffs, which was partially offset by price increases and tariff mitigation efforts.

Operating margin expanded by 70 basis points to 9.3 percent, while adjusted operating margin reached 10 percent, up 80 basis points YoY. Diluted earnings per share (EPS) reached 0.37 dollars, up 15.6 percent from 0.32 dollars. Adjusted diluted EPS stood at 0.40 dollars, compared to 0.35 dollars in the prior-year period.

Updated full-year 2026 financial guidance

Wolverine Worldwide raised its full-year guidance. For fiscal year 2026, the group projects revenue in the range of 1.980 billion dollars to 2.000 billion dollars, representing reported growth of 5.6 percent to 6.7 percent, and constant currency growth of 5.6 percent to 6.6 percent excluding the 53rd week in 2025 (raised from 1.960 billion dollars to 1.985 billion dollars).

Gross margin is expected to be approximately 46.9 percent, down 40 basis points compared to 2025 (raised from 46.4 percent). Operating margin of approximately 9.5 percent, up 150 basis points YoY; adjusted operating margin of approximately 9.9 percent, up 90 basis points YoY (raised from 9.2 percent and 9.5 percent, respectively).

Diluted EPS is expected to range between 1.48 dollars to 1.58 dollars; adjusted diluted EPS of 1.55 dollars to 1.65 dollars (raised from 1.39 dollars to 1.54 dollars and 1.43 dollars to 1.58 dollars, respectively).