Core Insights - Wolverine World Wide, Inc. (WWW) reported strong third-quarter 2025 results, with both revenues and earnings exceeding expectations and showing year-over-year growth [1][2][10] Financial Performance - Adjusted earnings per share were 36 cents, surpassing the Zacks Consensus Estimate of 33 cents and improving from 28 cents in the prior-year quarter [4][10] - Total revenues reached $470.3 million, reflecting a 6.8% year-over-year increase on a reported basis and a 5.5% increase on a constant-currency basis, exceeding the Zacks Consensus Estimate of $463 million [5][10] - Direct-to-consumer revenues were $106.8 million, down 4.9% year over year, while international business revenues increased by 13.5% to $242.7 million [5] Segment Performance - Active Group revenues rose 10.7% year over year to $352.8 million, surpassing the Zacks Consensus Estimate of $343.5 million [6] - Work Group revenues declined 2.9% year over year to $105.9 million, falling short of the consensus estimate of $106.7 million [6] - Revenues from the Other segment fell 6.5% year over year to $11.6 million, also below the consensus estimate of $12.4 million [6] Brand Performance - Merrell's revenues increased by 5.1% year over year to $167.3 million, while Saucony's revenues surged 27% to $133.1 million [7] - Wolverine's revenues decreased by 8.2% to $45.3 million, and Sweaty Betty's revenues fell 3.9% to $44.5 million [7] Margins and Costs - Gross profit was $223.2 million, up 12.3% year over year, with gross margin expanding by 240 basis points to 47.5% due to supply-chain cost-saving initiatives and reduced promotional activity [8][10] - Adjusted operating costs increased by 9.1% year over year to $180.2 million, with the metric as a percentage of revenues rising by 150 basis points to 9.1% [8] Future Outlook - For fiscal 2025, revenues are projected between $1.86 billion and $1.87 billion, indicating growth of 6-6.8% from 2024 ongoing business [13] - The gross margin is expected to be 47.1%, reflecting an improvement of 280 basis points over 2024, with earnings per share projected at $1.08 to $1.13 [14]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $470 million, exceeding the guidance midpoint of $455 million, representing a 7% increase year-over-year [27][28] - Adjusted earnings per share (EPS) grew 29% to $0.36 compared to $0.28 in the prior year, reflecting disciplined execution and improved profitability [31][32] - Consolidated gross margin increased to 47.5%, up 240 basis points year-over-year, driven by product cost savings and lower promotional activity [31][32] Business Line Data and Key Metrics Changes - Saucony revenue increased by 27% in Q3, driven by strong growth in both performance run and lifestyle categories [29][30] - Merrell revenue grew by 5%, supported by market share gains in the hike category and strong sell-through at key accounts [30][17] - Sweaty Betty's revenue declined by 4%, but this was better than expected as the brand executed a clear strategy to reset its business [30][20] Market Data and Key Metrics Changes - Global wholesale revenue increased by 11%, with international wholesale up mid-teens and US wholesale up mid-single digits [28] - Direct-to-consumer (DTC) revenue declined by 5%, primarily due to lower promotional activity in the US, partially offset by international growth [28][30] - The Asia-Pacific region is expected to be the fastest-growing market for Saucony, with significant expansion plans in China [15][16] Company Strategy and Development Direction - The company aims to continue scaling its two largest brands, Merrell and Saucony, which are expected to represent nearly two-thirds of total revenue in 2025 [6][9] - A focus on responsible brand management and reducing promotional activity is emphasized to enhance brand positioning and sell-through rates [40] - The company is investing in product innovation and marketing to strengthen its brand portfolio and drive long-term growth [40][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy and path forward, despite challenges in the Workgroup segment [27][35] - The company anticipates revenue growth of approximately 6% for fiscal year 2025, with adjusted EPS expected to increase by about 50% compared to 2024 [9][34] - Management acknowledged the dynamic macro environment and evolving consumer preferences, emphasizing the need for agility and responsiveness [39][40] Other Important Information - The company changed its accounting policy for inventory from LIFO to FIFO, aligning all warehouse inventory under a consistent policy [4] - The impact of tariffs is being managed effectively, with expectations to offset the majority of unmitigated impacts in 2025 [33][34] Q&A Session Summary Question: Contribution of new distribution to Saucony's growth - Management indicated that about a third of Saucony's growth in the quarter came from new distribution [44] Question: Balance between lifestyle and performance footwear - Management noted that lifestyle footwear is growing faster than performance, but both segments are gaining share [46] Question: Expectations for Saucony's door count in 2026 - Management anticipates an increase in door count for Saucony in the first half of 2026, with a focus on responsible brand management [50][58] Question: Sell-through rates and performance by gender - Management reported strong performance in women's and kids' categories, with men's also performing well [87][90] Question: Merrell's distribution evolution - Management stated that Merrell's new door expansion will not be as aggressive as Saucony's, focusing instead on evolving existing distribution [96]

Core Insights - Wolverine World Wide (WWW) reported quarterly earnings of $0.36 per share, exceeding the Zacks Consensus Estimate of $0.33 per share, and showing an increase from $0.29 per share a year ago, resulting in an earnings surprise of +9.09% [1] - The company achieved revenues of $470.3 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.51% and up from $440.2 million year-over-year [2] - Wolverine has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Earnings Outlook - The future performance of Wolverine's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on recent earnings and future expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $518.74 million, and for the current fiscal year, it is $1.33 on revenues of $1.87 billion [7] Industry Context - The Shoes and Retail Apparel industry, to which Wolverine belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, which may impact stock performance [8] - Caleres Inc. (CAL), another company in the same industry, is expected to report quarterly earnings of $0.75 per share, reflecting a year-over-year decline of -39% [9]

Financial Performance - Q3 2025 - Adjusted revenue reached $470 million, exceeding guidance of $450 million to $460 million, representing a 6.9% year-over-year increase, or 5.5% on a constant currency basis[52] - Gross margin was 47.5%, a 240 bps increase year-over-year, surpassing the approximate guidance of 47.0%[52] - Adjusted operating margin was 9.1%, a 150 bps increase year-over-year, also exceeding the approximate guidance of 8.3%[52] - Adjusted EPS was $0.36, a 28.6% increase year-over-year, or 25.0% on a constant currency basis, outperforming the guidance of $0.28 to $0.32[52] - Inventory at the end of the quarter was $293 million, a decrease of approximately 0.7% compared to the prior year[58] - Net debt at the end of the quarter was $543 million, a decrease of approximately 3.6% compared to the prior year[59] FY25 Guidance - Revenue is projected to be between $1.855 billion and $1.870 billion, representing a 6.4% increase at the midpoint compared to the 2024 ongoing business, or 5.6% on a constant currency basis[61] - Gross margin is expected to increase by 280 bps compared to last year, reaching approximately 47.1%[61] - Adjusted operating margin is expected to increase by 160 bps compared to last year, reaching approximately 8.9%[61] - Adjusted EPS is projected to be between $1.29 and $1.34, representing a 50.0% year-over-year increase at the midpoint compared to $0.88 in 2024[61]

Revenue Performance - Total revenue for Q3 2025 was $470.3 million, representing a year-over-year increase of 6.8% compared to $440.2 million in Q3 2024[5] - Active Group revenue increased by 10.7% to $352.8 million, while Work Group revenue decreased by 2.9% to $105.9 million[5] - International revenue for Q3 2025 was $242.7 million, an increase of 13.5% compared to $213.8 million in Q3 2024[5] - Revenue for Q3 2025 was $470.3 million, a 6.8% increase from $440.2 million in Q3 2024[24] - Fiscal 2025 revenue guidance is projected to be between $1,855 million and $1,870 million, with a gross margin of 47.1%[34] Profitability Metrics - Gross margin improved to 47.5%, up 240 basis points from 45.1% in the prior year, driven by supply chain cost initiatives and lower promotional activity[5] - Gross profit increased to $223.2 million in Q3 2025, with a gross margin of 47.5%, compared to $198.7 million and 45.1% in Q3 2024[1] - Operating profit rose to $39.6 million in Q3 2025, resulting in an operating margin of 8.4%, up from $34.7 million and 7.9% in Q3 2024[1] - The operating margin for Fiscal 2025 is projected to be 8.9%, up from a reported margin of 7.8%[34] Earnings Per Share - Diluted earnings per share for Q3 2025 were $0.30, a 7.1% increase from $0.28 in Q3 2024[5] - Diluted earnings per share for Q3 2025 was $0.30, an increase from $0.28 in Q3 2024[1] - Adjusted diluted earnings per share for 2025 are projected to be in the range of $1.29 to $1.34[10] - Adjusted diluted EPS for Fiscal 2025 is expected to be between $1.29 and $1.34, reflecting a $0.21 adjustment from reported EPS of $1.08 to $1.13[34] Net Earnings - Net earnings attributable to Wolverine World Wide, Inc. were $25.1 million in Q3 2025, compared to $23.2 million in Q3 2024, reflecting a 8.2% increase[1] - For the quarter ended September 27, 2025, net earnings attributable to Wolverine World Wide, Inc. were $25.1 million, with diluted EPS of $0.30[39] - Year-to-date net earnings as of September 27, 2025, were $68.5 million, reflecting an increase of $2.8 million from adjustments[39] - Net earnings for Fiscal 2025 are forecasted to be between $109 million and $113 million, with adjustments accounting for $18 million[34] Balance Sheet and Debt - Inventory at the end of Q3 2025 was $293 million, down $2 million or approximately 0.7% from the prior year[6] - Net debt decreased to $543 million, down $20 million or approximately 3.6% compared to the prior year[6] - Total current assets decreased to $716.8 million as of September 27, 2025, from $771.5 million a year earlier[19] - Total liabilities decreased to $1,315.6 million in Q3 2025, down from $1,462.5 million in Q3 2024[19] - Cash and cash equivalents at the end of Q3 2025 were $133.9 million, a decrease from $140.2 million at the end of Q3 2024[21] Accounting Changes - The company has changed its inventory accounting method from LIFO to FIFO, which will impact future financial results[7] - The company has changed its inventory costing method from LIFO to FIFO, impacting financial results for fiscal years 2025, 2024, and 2023[38] Tax and Expenses - The effective tax rate for Q3 2025 was 20.5%, compared to 17.7% in Q3 2024[1] - Operating expenses as a percentage of revenue increased to 39.0% in Q3 2025 from 37.3% in Q3 2024[1] Non-GAAP Measures - The company believes that non-GAAP measures provide useful information for evaluating operating performance and trends[34] - Constant currency presentation is used to exclude the impact of foreign currency fluctuations, providing a clearer view of operational results[34]

Core Insights - Wolverine World Wide, Inc. reported solid financial results for Q3 ended September 27, 2025, with brands Merrell, Saucony, and Sweaty Betty exceeding expectations [1] - The company achieved a record gross margin quarter, contributing to better-than-anticipated earnings per share [1] Financial Performance - The financial results indicate a strong performance driven by disciplined execution across key brands [1] - The earnings per share surpassed market expectations, reflecting effective management and operational efficiency [1]

Core Insights - Wolverine World Wide, Inc. has been named the 2025 Company of the Year by Footwear News, highlighting its significant achievements in the footwear and apparel industry [1] - The recognition will take place at the Footwear News Achievement Awards on December 3 in New York City, indicating the company's prominent status within the industry [1] - This accolade comes two years after Wolverine Worldwide implemented a comprehensive strategy aimed at transforming the company, showcasing the effectiveness of its strategic initiatives [1]

Upgrades - Wells Fargo upgraded Glaukos (GKOS) to Overweight from Equal Weight with a price target of $120, up from $92, highlighting the potential of Epioxa as a significant growth driver [2] - RBC Capital upgraded Honeywell (HON) to Outperform from Sector Perform with a price target of $253, up from $235, citing a solid Q3 and the start of a breakup catalyst-rich phase [3] - Truist upgraded Booking Holdings (BKNG) to Buy from Hold with a price target of $5,750, up from $5,630, based on Asia's long-term travel outlook and steady global GDP growth [3] - JPMorgan upgraded Five Below (FIVE) to Overweight from Neutral with a price target of $186, up from $154, anticipating multi-year earnings growth supported by unit growth expansion [4] - Guggenheim upgraded Microsoft (MSFT) to Buy from Neutral with a price target of $586, believing the company will benefit from the artificial intelligence sector [5] Downgrades - Keefe Bruyette downgraded Berkshire Hathaway (BRK.A) to Underperform from Market Perform with a price target of $7,000, down from $735,000, due to concerns over Geico's underwriting margin and other economic pressures [5] - Morgan Stanley downgraded Harley-Davidson (HOG) to Underweight from Equal Weight with a price target of $25, down from $27, indicating a 10% downside potential [5] - RBC Capital downgraded Roper Technologies (ROP) to Sector Perform from Outperform with a price target of $539, down from $644, citing limited relative upside [5] - Jefferies downgraded Keysight Technologies (KEYS) to Hold from Buy with a price target of $180, down from $181, noting that the stock's valuation reflects its growth potential [5] - Williams Trading downgraded Wolverine World Wide (WWW) to Hold from Buy with a price target of $27, down from $30, expecting a deceleration in Saucony's sales growth [5]

Core Insights - Merrell and Gramicci have collaborated to launch the Moab 2 Siren x Gramicci, blending trail performance with bold style, set to launch on October 24, 2025 [1][2][4] Company Overview - Merrell, founded in 1981, is a leader in outdoor footwear, known for the Moab hiking boot, which is the best-selling hiking boot globally [3][5] - Gramicci, established in 1982, revolutionized outdoor apparel with innovations like the gusseted short and webbing belt, originating from California's climbing culture [3][6] Product Details - The Moab 2 Siren x Gramicci features a reinterpreted Siren Web upper and is built on the Moab 2 midsole and outsole, designed for versatility across various terrains [2][4] - The product will be available in two colorways: Dark Earth and Citron [2] Cultural Significance - The collaboration honors the legacies of both brands while redefining modern outdoor culture, emphasizing movement, freedom, and discovery [4][3]

Core Insights - Wolverine World Wide, Inc. is set to report its third quarter fiscal 2025 financial results on November 5, 2025, at approximately 6:30 a.m. ET [1] - Following the financial results announcement, the company will conduct a conference call at 8:30 a.m. ET to discuss the results and current business trends [1] Company Information - The conference call will be accessible to investors and analysts, with a dedicated phone line for participation [1]