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Wolverine Stock Gains 15% on Solid Earnings & Revenues in Q2
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Key Takeaways
WWW's Q2 revenues rose 11.5% to $474.2M, beating estimates and driven by key brand momentum.
Adjusted EPS of $0.35 beat the $0.23 estimate, more than doubling from $0.15 last year.
The gross margin hit a record 47.2%, aided by full-price sales, leaner inventory and supply-chain efficiency.
Wolverine World Wide, Inc. (WWW - Free Report) reported impressive second-quarter 2025 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Also, revenues and earnings grew year over year. As a result, its shares have gained 14.8% as of yesterday's closing.
The company reported strong second-quarter results, highlighted by robust double-digit revenue growth from its key brands, Merrell and Saucony, and a substantial year-over-year increase in earnings. Saucony posted record second-quarter revenues, while Merrell continued its momentum with its fourth consecutive quarter of growth.
Wolverine also delivered a record gross margin performance, driven by improved inventory management, a higher mix of full-price sales and operational efficiencies across the supply chain. Despite macroeconomic uncertainty and shifting trade dynamics, Wolverine’s focus on product innovation, disciplined brand-building and operational enhancements continues to position it for sustainable, profitable growth in a dynamic global market.
Wolverine World Wide, Inc. Price, Consensus and EPS Surprise
The company posted adjusted earnings of 35 cents a share, which beat the Zacks Consensus Estimate of 23 cents. The figure improved significantly from adjusted earnings of 15 cents in the prior-year quarter. At constant currency, the company’s earnings per share were 34 cents, up from earnings of 15 cents in the prior-year quarter.
Total revenues were $474.2 million, up 11.5% year over year on a reported basis and 10.3% on a constant-currency basis. Ongoing revenues of $474.2 million increased 11.6% on a reported basis and 10.4% on a constant-currency basis. The top line surpassed the Zacks Consensus Estimate of $450 million. Direct-to-consumer revenues on an ongoing basis were $111.6 million, down 1.4% year over year. WWW’s international business’ revenues increased 15.7% to $250 million.
Regarding segments, Active Group’s revenues increased 16.2% year over year to $355.5 million. However, the segment’s revenues surpassed the Zacks Consensus Estimate of $327.9 million. Revenues at Work Group increased 2.4% year over year to $107.5 million and beat the consensus estimate of $104 million. Revenues of the Other segment plunged 21.7% year over year to $11.2 million. Also, the metric lagged the consensus estimate of $14.1 million.
Brand-wise, Merrell’s revenues rose 10.7% year over year to $157.9 million. Saucony's revenues improved 41.5% to $144.3 million. Wolverine's revenues declined 7.5% to $37.1 million. Sweaty Betty generated revenues of $41.3 million, down 6.1% year over year. The Zacks Consensus Estimate for the brands’ revenues was pegged at $154.1 million for Merrell, $114.2 million for Saucony, $39.3 million for Wolverine and $39.6 million for Sweaty Betty.
Wolverine’s Margins & Costs
Adjusted gross profit was $224 million, up 22.3% year over year. The adjusted gross margin increased 410 basis points (bps) year over year to 47.2%. This resulted from a more favorable sales mix, reduced promotional activity and benefits from supply-chain cost-saving initiatives, with slight incremental impacts from U.S. tariffs.
Adjusted operating costs increased 15.7% to $180.6 million. Also, the metric, as a percentage of revenues, increased 290 bps to 9.2%.
WWW’s Other Financials
The company ended the quarter with cash and cash equivalents of $141 million, long-term debt of $563.5 million, and stockholders' equity of $357 million.
Net debt was $568 million at the end of the quarter, down 14.8% from the previous year. Inventory at the end of the quarter was $316 million, up 6.4% from the year-earlier quarter.
WWW Stock Past 3-Month Performance
Image Source: Zacks Investment Research
What Lies Ahead for Wolverine?
Following strong financial performance in the first half of 2025, the outlook for the third quarter reflects the company’s expectations for continued momentum across its operations. Revenues are projected to be $450-$460 million, suggesting growth of 2.1-4.4% from ongoing business revenues reported in third-quarter 2024. On a constant-currency basis, revenue growth is expected to be 1.5-3.8%.
Active Group revenues are expected to grow in a mid-single-digit percentage from the same period last year, while Work Group revenues are projected to decline year over year in a low-single-digit percentage. Adjusting for the previously mentioned $10 million timing shift from the third quarter into the second quarter, Active Group revenues are expected to grow in a high-single-digit percentage, and Work Group revenues are anticipated to be flat with the prior year.
The gross margin is expected to be 47%, an improvement of 170 basis points from the third quarter of 2024. The operating margin is anticipated to be 7.3%, a decline of 70 basis points from the prior year, while the adjusted operating margin is expected to be 8.3%, suggesting an improvement of 60 basis points from the third-quarter 2024 adjusted operating margin for the ongoing business.
Earnings per share are expected to be 24-28 cents. Adjusted earnings per share are projected to be 28-32 cents, whereas the company reported 29 cents in the same quarter of the previous year. Due to ongoing uncertainty surrounding tariffs and broader macroeconomic conditions, the company is not providing the 2025 guidance at this time.
In the past three months, shares of this Zacks Rank #1 (Strong Buy) company have surged 65.3% compared with the industry’s 20.5% growth.
The Zacks Consensus Estimate for Levi’s current fiscal-year earnings indicates growth of 4% from the year-ago actual. LEVI delivered a trailing four-quarter average earnings surprise of 25.9%.
Stitch Fix delivers customized shipments of apparel, shoes and accessories for women, men and kids. It has a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Stitch Fix’s fiscal 2025 earnings indicates an upsurge of 71.7% from the fiscal 2024 reported level. SFIX delivered a trailing four-quarter average earnings surprise of 51.4%.
Bath & Body Works offers a wide range of products, including soaps, lotions, fragrances, candles and other personal care items. It presently has a Zacks Rank of 2.
The Zacks Consensus Estimate for Bath & Body Works’ current fiscal-year earnings and sales indicates growth of 5.8% and 2.4%, respectively, from the year-ago actuals. BBWI delivered a trailing four-quarter average earnings surprise of 4.7%.
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Wolverine Stock Gains 15% on Solid Earnings & Revenues in Q2
Key Takeaways
Wolverine World Wide, Inc. (WWW - Free Report) reported impressive second-quarter 2025 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Also, revenues and earnings grew year over year. As a result, its shares have gained 14.8% as of yesterday's closing.
The company reported strong second-quarter results, highlighted by robust double-digit revenue growth from its key brands, Merrell and Saucony, and a substantial year-over-year increase in earnings. Saucony posted record second-quarter revenues, while Merrell continued its momentum with its fourth consecutive quarter of growth.
Wolverine also delivered a record gross margin performance, driven by improved inventory management, a higher mix of full-price sales and operational efficiencies across the supply chain. Despite macroeconomic uncertainty and shifting trade dynamics, Wolverine’s focus on product innovation, disciplined brand-building and operational enhancements continues to position it for sustainable, profitable growth in a dynamic global market.
Wolverine World Wide, Inc. Price, Consensus and EPS Surprise
Wolverine World Wide, Inc. price-consensus-eps-surprise-chart | Wolverine World Wide, Inc. Quote
Insight Into WWW’s Q2 Performance
The company posted adjusted earnings of 35 cents a share, which beat the Zacks Consensus Estimate of 23 cents. The figure improved significantly from adjusted earnings of 15 cents in the prior-year quarter. At constant currency, the company’s earnings per share were 34 cents, up from earnings of 15 cents in the prior-year quarter.
Total revenues were $474.2 million, up 11.5% year over year on a reported basis and 10.3% on a constant-currency basis. Ongoing revenues of $474.2 million increased 11.6% on a reported basis and 10.4% on a constant-currency basis. The top line surpassed the Zacks Consensus Estimate of $450 million. Direct-to-consumer revenues on an ongoing basis were $111.6 million, down 1.4% year over year. WWW’s international business’ revenues increased 15.7% to $250 million.
Regarding segments, Active Group’s revenues increased 16.2% year over year to $355.5 million. However, the segment’s revenues surpassed the Zacks Consensus Estimate of $327.9 million. Revenues at Work Group increased 2.4% year over year to $107.5 million and beat the consensus estimate of $104 million. Revenues of the Other segment plunged 21.7% year over year to $11.2 million. Also, the metric lagged the consensus estimate of $14.1 million.
Brand-wise, Merrell’s revenues rose 10.7% year over year to $157.9 million. Saucony's revenues improved 41.5% to $144.3 million. Wolverine's revenues declined 7.5% to $37.1 million. Sweaty Betty generated revenues of $41.3 million, down 6.1% year over year. The Zacks Consensus Estimate for the brands’ revenues was pegged at $154.1 million for Merrell, $114.2 million for Saucony, $39.3 million for Wolverine and $39.6 million for Sweaty Betty.
Wolverine’s Margins & Costs
Adjusted gross profit was $224 million, up 22.3% year over year. The adjusted gross margin increased 410 basis points (bps) year over year to 47.2%. This resulted from a more favorable sales mix, reduced promotional activity and benefits from supply-chain cost-saving initiatives, with slight incremental impacts from U.S. tariffs.
Adjusted operating costs increased 15.7% to $180.6 million. Also, the metric, as a percentage of revenues, increased 290 bps to 9.2%.
WWW’s Other Financials
The company ended the quarter with cash and cash equivalents of $141 million, long-term debt of $563.5 million, and stockholders' equity of $357 million.
Net debt was $568 million at the end of the quarter, down 14.8% from the previous year. Inventory at the end of the quarter was $316 million, up 6.4% from the year-earlier quarter.
WWW Stock Past 3-Month Performance
Image Source: Zacks Investment Research
What Lies Ahead for Wolverine?
Following strong financial performance in the first half of 2025, the outlook for the third quarter reflects the company’s expectations for continued momentum across its operations. Revenues are projected to be $450-$460 million, suggesting growth of 2.1-4.4% from ongoing business revenues reported in third-quarter 2024. On a constant-currency basis, revenue growth is expected to be 1.5-3.8%.
Active Group revenues are expected to grow in a mid-single-digit percentage from the same period last year, while Work Group revenues are projected to decline year over year in a low-single-digit percentage. Adjusting for the previously mentioned $10 million timing shift from the third quarter into the second quarter, Active Group revenues are expected to grow in a high-single-digit percentage, and Work Group revenues are anticipated to be flat with the prior year.
The gross margin is expected to be 47%, an improvement of 170 basis points from the third quarter of 2024. The operating margin is anticipated to be 7.3%, a decline of 70 basis points from the prior year, while the adjusted operating margin is expected to be 8.3%, suggesting an improvement of 60 basis points from the third-quarter 2024 adjusted operating margin for the ongoing business.
Earnings per share are expected to be 24-28 cents. Adjusted earnings per share are projected to be 28-32 cents, whereas the company reported 29 cents in the same quarter of the previous year. Due to ongoing uncertainty surrounding tariffs and broader macroeconomic conditions, the company is not providing the 2025 guidance at this time.
In the past three months, shares of this Zacks Rank #1 (Strong Buy) company have surged 65.3% compared with the industry’s 20.5% growth.
Other Stocks to Consider
Some other top-ranked stocks are Levi Strauss & Co. (LEVI - Free Report) , Stitch Fix (SFIX - Free Report) and Bath & Body Works, Inc. (BBWI - Free Report) .
Levi designs and markets jeans, casual wear and related accessories for men, women and children. It flaunts a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Levi’s current fiscal-year earnings indicates growth of 4% from the year-ago actual. LEVI delivered a trailing four-quarter average earnings surprise of 25.9%.
Stitch Fix delivers customized shipments of apparel, shoes and accessories for women, men and kids. It has a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Stitch Fix’s fiscal 2025 earnings indicates an upsurge of 71.7% from the fiscal 2024 reported level. SFIX delivered a trailing four-quarter average earnings surprise of 51.4%.
Bath & Body Works offers a wide range of products, including soaps, lotions, fragrances, candles and other personal care items. It presently has a Zacks Rank of 2.
The Zacks Consensus Estimate for Bath & Body Works’ current fiscal-year earnings and sales indicates growth of 5.8% and 2.4%, respectively, from the year-ago actuals. BBWI delivered a trailing four-quarter average earnings surprise of 4.7%.