Q2 2026 Wolverine World Wide Inc Earnings Call Transcript
Key Points
- Wolverine World Wide Inc (WWW) delivered better-than-anticipated revenue, growing 6% on a constant currency basis, and raised its full-year 2026 guidance.
- The company's two largest brands, Merrell and Saucony, continued to lead growth with revenue up 10% and 9% respectively, with Saucony's outlook raised to mid-teens growth.
- Adjusted earnings per share grew 14% year-over-year, reflecting strong SG&A leverage and disciplined cost management.
- The company achieved its seventh consecutive quarter of year-over-year growth, indicating consistent momentum and successful execution of its brand-building model.
- Wolverine World Wide Inc (WWW) strengthened its balance sheet, with net debt down $125 million year-over-year and an increased operating free cash flow outlook.
- Gross margin decreased 70 basis points year-over-year, pressured by an approximate 310 basis point unmitigated tariff headwind and elevated oil prices on freight costs.
- Sweaty Betty's revenue declined 3% in the quarter, reflecting the ongoing planned reset of its U.S. business, which continues to be a drag on overall performance.
- The Workgroup segment revenue declined 2% year-over-year, with the Wolverine brand's marketplace recalibration expected to cause near-term volatility and choppiness.
- Merrell's DTC revenue declined due to a deliberate shift in marketing investments toward upper-funnel brand-building activities, which pressured short-term direct-to-consumer results.
- The company faces ongoing uncertainty regarding tariffs, with guidance assuming existing rates remain in place for the balance of 2026 and excluding any potential refund on previously paid IEPA tariffs.
Greetings and welcome to the Wolverine Worldwide Second Quarter Fiscal 2026 Earnings Call.
At this time, all participants are in a listen-only mode.
A question-and-answer session will follow the formal presentation.
If you'd like to ask a question, please press star and the number one on your telephone keypad.
As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Jared Filippone, Head of Investor Relations. You may begin.
Good morning and welcome to our second quarter fiscal 2026 conference call.
On the call today are Chris Seth Nagel, 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 second quarter of 2026 and guidance for fiscal year 2026. The press release is available on many news sites and can be viewed on our investor relations website at investors.wolverineworldwide
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