Wolverine World Wide Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 14 May 2026: press release. Guidance figures: 6 raised, 3 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue rose 11.0% reported: Revenue was $457.6 million against $412.3 million a year earlier, up 11.0% reported and 7.3% in constant currency. Source
• Operating margin rose 230 basis points: Operating margin was 7.4% against 5.1%. Adjusted operating margin was 7.7% against 6.3%, up 140 basis points. Source
• Adjusted diluted EPS rose 31.6%: Adjusted diluted EPS was $0.25 against $0.19. Diluted EPS was $0.24 against $0.15, and constant currency adjusted EPS was $0.22. Source
• Diluted EPS guidance raised: Full-year diluted EPS expected at $1.39 to $1.54, against $1.31 to $1.46 previously. Adjusted diluted EPS expected at $1.43 to $1.58, against $1.35 to $1.50. Source
• Active Group led revenue growth: Active Group revenue was $371.6 million, up 13.7% reported and 9.3% in constant currency. Work Group was $75.7 million, up 1.2%; Other was $10.3 million, down 4.6%. Source
• Saucony and Merrell both grew: Saucony revenue was $155.9 million, up 20.1% reported and 15.2% in constant currency. Merrell was $169.7 million, up 12.7% reported and 8.7% in constant currency. Source
• Gross margin flat at 47.6%: Gross margin was 47.6%, unchanged from the prior year. Management cited a favorable mix toward full-price sales and recent price increases, offset by higher U.S. tariffs. Source

“I believe we're better brand builders today - led by Merrell and Saucony - with encouraging progress now evident across our broader portfolio.”

Chris Hufnagel, President and Chief Executive Officer

Guidance

What changed from last quarter

• Guidance raised: Gross margin guidance raised to about 46.4% from about 46.0%. Source
• Guidance raised: Operating margin guidance raised to about 9.2% from 8.8%; adjusted to about 9.5% from 9.1%. Source
• Guidance raised: Diluted EPS guidance raised to $1.39 to $1.54 from $1.31 to $1.46; adjusted to $1.43 to $1.58 from $1.35 to $1.50. Source
• Guidance raised: Diluted weighted average shares guidance raised to about 82.0 million from about 81.5 million. Source
• Guidance kept: Revenue guidance unchanged at $1.960 billion to $1.985 billion. Source
• Guidance kept: Effective tax rate guidance unchanged at about 18.0%. Source

Quarter results and profit

• Revenue rose 11.0% reported: Revenue was $457.6 million against $412.3 million a year earlier, up 11.0% reported and 7.3% in constant currency. Source
• Operating margin rose 230 basis points: Operating margin was 7.4% against 5.1%. Adjusted operating margin was 7.7% against 6.3%, up 140 basis points. Source
• Adjusted diluted EPS rose 31.6%: Adjusted diluted EPS was $0.25 against $0.19. Diluted EPS was $0.24 against $0.15, and constant currency adjusted EPS was $0.22. Source
• Net earnings attributable rose: Net earnings attributable to the company were $20.2 million against $12.1 million, on 81.7 million diluted shares against 80.8 million. Source

Full-year 2026 guidance

• Revenue guidance kept: Full-year revenue still expected at $1.960 billion to $1.985 billion, growth of 4.6% to 5.9% over 2025, with constant currency growth of 3.8% to 5.1%. Source
• Gross margin guidance raised: Full-year gross margin expected at about 46.4%, down 90 basis points from 2025, against a previous estimate of about 46.0%. Source
• Operating margin guidance raised: Full-year operating margin expected at about 9.2%, up 120 basis points, against 8.8% previously. Adjusted operating margin about 9.5%, against 9.1% previously. Source
• Diluted EPS guidance raised: Full-year diluted EPS expected at $1.39 to $1.54, against $1.31 to $1.46 previously. Adjusted diluted EPS expected at $1.43 to $1.58, against $1.35 to $1.50. Source
• Share count guidance raised: Diluted weighted average shares expected at about 82.0 million, up from about 81.5 million. Effective tax rate kept at about 18.0%. Source

“We're executing our strategies with pace, navigating a dynamic operating environment by leaning into what we do best”

Chris Hufnagel, President and Chief Executive Officer

Segments and regions

• Active Group led revenue growth: Active Group revenue was $371.6 million, up 13.7% reported and 9.3% in constant currency. Work Group was $75.7 million, up 1.2%; Other was $10.3 million, down 4.6%. Source
• International and direct-to-consumer sales: International revenue was $249.6 million, up 20.1% reported and 12.8% in constant currency. Direct-to-consumer was $99.3 million, up 3.0% reported and down 0.2% in constant currency. Source

Brands and product lines

• Saucony and Merrell both grew: Saucony revenue was $155.9 million, up 20.1% reported and 15.2% in constant currency. Merrell was $169.7 million, up 12.7% reported and 8.7% in constant currency. Source
• Wolverine and Sweaty Betty results: Wolverine revenue was $36.4 million, down 2.5%. Sweaty Betty was $38.6 million, up 1.5% reported and down 4.4% in constant currency. Source

Costs and operating expenses

• Operating expenses rose 5.0%: Reported operating expenses were $183.9 million, up 5.0%, or 40.2% of revenue against 42.5%. Adjusted operating expenses were $182.7 million, up 7.3%. Source
• Environmental costs were lower: Environmental and other related costs, net of recoveries, were $1.2 million against $3.1 million a year earlier. These costs are excluded from adjusted results. Source

Margins, pricing and tax

• Gross margin flat at 47.6%: Gross margin was 47.6%, unchanged from the prior year. Management cited a favorable mix toward full-price sales and recent price increases, offset by higher U.S. tariffs. Source
• Effective tax rate rose: Income tax expense was $5.2 million against $1.3 million, giving an effective tax rate of 18.8% against 8.9%. Source

Cash, debt and capital

• Net debt reduced by $85 million: Net debt was $519 million, down $85 million or 14.1% from a year earlier. Cash and cash equivalents were $120 million, up $13 million. Source
• Operating cash outflow and working capital: Net cash used in operating activities was $83.2 million against $83.8 million. Changes in operating assets and liabilities used $115.2 million against $102.2 million. Source
• Capital spending and dividends: Additions to property, plant and equipment were $1.7 million against $7.6 million. Cash dividends paid were $8.7 million against $8.5 million. Source

Inventory, receivables and payables

• Inventory up 0.4%: Inventory was $280 million, up $1 million or 0.4%. The balance sheet shows inventories, net of $280.3 million against $279.2 million. Source
• Receivables fell to $185.5 million: Accounts receivable, net were $185.5 million against $239.2 million a year earlier. Source
• Payables and accrued liabilities fell: Accounts payable and other accrued liabilities were $311.4 million against $372.0 million. Source

Risks management discussed

• Financial: Fiscal 2026 has 52 weeks against 53 in fiscal 2025, which management said will affect annual comparisons. Source
• External: Foreign exchange added $15.4 million to reported revenue and $0.03 to reported adjusted EPS in the quarter. Source

Earlier plans management reported on

• Ahead: Management said first quarter revenue, gross margin and EPS all exceeded its expectations. Source

Other quarters

• Q3 FY2026 earnings call
• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.