Q3 2025 Wolverine World Wide Inc Earnings Call Transcript
Key Points
- Wolverine World Wide Inc (WWW) exceeded expectations on both the top and bottom line, with revenue growing approximately 7% driven by Merrell and Saucony.
- Saucony achieved a 27% revenue growth in the third quarter, driven by strong performance in both the performance run and lifestyle categories.
- Merrell grew revenue by 5% in the third quarter, with strong market share gains in the hike category and successful product launches.
- Sweaty Betty showed signs of improvement with a 4% revenue decline, better than expected, and progress in its core EMEA market.
- The company reported a record gross margin of 47.5%, an increase of 240 basis points compared to the prior year, driven by product cost savings and lower promotional activity.
- The Wolverine brand and Work Group underperformed, with revenue down 8% and 3% respectively, and not meeting the company's expectations.
- The Work Group is expected to finish the year with a high single-digit decline in revenue compared to 2024.
- The company faces challenges with tariff impacts, estimating an unmitigated impact of approximately $65 million annually, affecting future margins.
- DTC revenue declined 5% compared to the prior year, primarily due to lower promotional activity in the US.
- The company is still working on improving execution in the Work Group and addressing inconsistent performance in the Wolverine brand.
Greetings, and welcome to the Wolverine Worldwide third quarter fiscal 2025 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Jared Filippone, Head of Investor Relations. Jared, you may begin.
Good morning, and welcome to our third quarter fiscal 2025 conference call. On the call today are Chris Hufnagel, President and Chief Executive Officer; and Taryn Miller, Chief Financial Officer.
Earlier this morning, we issued a press release announcing our financial results for the third quarter of 2025 and guidance for fiscal year 2025. The press release is available on many news sites and can be viewed on our corporate website at wolverineworldwide.com.
This morning's press release and comments made during today's earnings call include non-GAAP financial measures. These non-GAAP financial measures, including references to the ongoing business, were reconciled to the most comparable GAAP
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