Wolverine World Wide — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the third quarter ended October 3, 2026, was $505.4 million, a 7.5% year-over-year increase compared to $470.3 million in the prior year period; constant currency revenue growth was 7.7%.
• Gross margin improved to 54.6% from 47.5% in the prior year, an increase of 710 basis points.
• Operating margin was 17.7% compared to 8.4% in the prior year, an increase of 930 basis points; adjusted operating margin was 17.8% compared to 9.1%.
• Diluted earnings per share (EPS) were $0.78, a 160.0% increase from $0.30 in the prior year; adjusted diluted EPS was $0.79, a 119.4% increase from $0.36.
• Constant currency adjusted diluted EPS was $0.75, a 108.3% increase from $0.36.
• Operating expenses were $186.4 million, up 1.5% from $183.6 million; adjusted operating expenses were $186.0 million, up 3.2% from $180.2 million.
• Net earnings attributable to Wolverine World Wide, Inc. for the quarter were $65.8 million compared to $25.1 million in the prior year.
• Cash and cash equivalents were $148 million, an increase of $14 million (10.6%) from the prior year period.
• Inventory was $278 million, a decrease of $14 million (4.9%) from the prior year period.
• Net debt was $399 million, a decrease of $143 million (26.4%) from the prior year period.
• IEEPA tariff refunds totaling $35.3 million benefited gross margin, operating margin, and adjusted operating margin by approximately 640 basis points each, and diluted and adjusted diluted EPS by approximately $0.31 each.

Guidance and Future Outlook:

• The company raised its full-year 2026 outlook, reflecting the impact of foreign currency and the benefit of IEEPA tariff refunds.
• Full-year 2026 revenue is expected to be approximately $2.000 billion to $2.010 billion, representing 6.7% to 7.2% growth compared to 2025; constant currency growth is expected to be 5.9% to 6.4%, or 6.6% to 7.2% excluding the impact of the 53rd week in 2025.
• Full-year 2026 gross margin is expected to be approximately 48.7%, up 140 basis points from 2025, including an approximate 170 basis point benefit from IEEPA tariff refunds.
• Full-year 2026 operating margin is expected to be approximately 11.5% (up 350 basis points from 2025) and adjusted operating margin approximately 11.8% (up 280 basis points from 2025), each including an approximate 170 basis point benefit from IEEPA tariff refunds.
• Full-year 2026 effective tax rate is expected to be approximately 19.0%.
• Full-year 2026 diluted EPS is expected to be in the range of $1.88 to $1.92, and adjusted diluted EPS in the range of $1.95 to $1.99, each including an approximate $0.32 benefit from IEEPA tariff refunds.
• Diluted weighted average shares are expected to be approximately 82.5 million.

Business Segments and Product Lines:

• Active Group revenue was $387.8 million, up 9.9% year-over-year (10.2% constant currency).
• Work Group revenue was $106.9 million, up 0.9% year-over-year (0.8% constant currency).
• Other segment revenue was $10.7 million, down 7.8% year-over-year (6.0% constant currency).
• Merrell revenue was $178.2 million, up 6.5% year-over-year (6.8% constant currency).
• Saucony revenue was $158.9 million, up 19.4% year-over-year (19.7% constant currency).
• Wolverine brand revenue was $43.5 million, down 4.1% year-over-year.
• Sweaty Betty revenue was $41.4 million, down 7.0% year-over-year (6.5% constant currency).
• International revenue was $271.2 million, up 11.7% year-over-year (12.1% constant currency).
• Direct-to-Consumer revenue was $109.1 million, up 2.2% year-over-year (2.3% constant currency).

Market and Competitive Landscape:

• The company reported its eighth consecutive quarter of growth, driven by its two largest brands and disciplined execution.
• The company operates in a dynamic environment while navigating global market conditions.
• Products are sold in approximately 170 countries and territories worldwide.

Risks and Challenges:

• Forward-looking statements involve risks including changes in general economic conditions, geopolitical conditions, and consumer spending confidence.
• Risks include increases or changes in duties, tariffs, quotas, or applicable assessments.
• Challenges include the inability to effectively compete in global footwear, apparel, and direct-to-consumer markets, or to maintain positive brand images and anticipate changing trends.
• Risks include inventory management, foreign currency exchange rate fluctuations, and supply chain disruptions.
• Potential risks include inflationary pressures, raw material costs, labor shortages, and facility closures at manufacturers.
• Risks related to direct-to-consumer operations, expansion into new markets, and seasonality/unpredictable weather conditions are noted.
• Legal compliance, litigation risks, cyberattacks, and stockholder activism are identified as potential risks.

Management Commentary and Tone:

• Chris Hufnagel, President and CEO, stated the company delivered a "strong third quarter performance" and described the transformation story as a "growth story."
• Management highlighted continued earnings improvement and a healthier balance sheet providing capacity to invest behind brands.
• Management expressed confidence in raising the 2026 outlook based on year-to-date results and expectations for the final quarter.

Other Key Points:

• The company received $35.3 million in refunds related to IEEPA tariffs paid, recorded as reductions to cost of goods sold, interest expense, and inventory.
• Fiscal 2026 is a 52-week year, while fiscal 2025 was a 53-week year, affecting annual comparisons.
• Non-GAAP financial measures exclude legal settlement costs, environmental and other related costs net of recoveries, reorganization costs, and financing transaction costs.
• The company paid $25.3 million in cash dividends year-to-date.
• Net cash provided by operating activities was $73.6 million year-to-date, compared to a use of $6.2 million in the prior year period.
• Net cash used in investing activities was $7.8 million year-to-date, compared to $12.9 million in the prior year period.
• Net cash used in financing activities was $121.2 million year-to-date, compared to a provision of $1.7 million in the prior year period.