Wolverine World Wide(WWW) - 2025 Q2 - Quarterly Results

Financial Highlights Wolverine Worldwide exceeded Q2 2025 expectations with 11.5% revenue growth, record 47.2% gross margin, and strong EPS gains Q2 2025 Performance Summary Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Y/Y Change | Constant Currency Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $474.2M | $425.2M | 11.5% | 10.3% | | Active Group Revenue | $355.5M | $305.9M | 16.2% | 14.3% | | Saucony Revenue | $144.3M | $102.0M | 41.5% | 40.0% | | Gross Margin | 47.2% | 43.1% | +410 bps | - | | Operating Margin | 8.6% | 6.8% | +180 bps | - | | Adjusted Operating Margin | 9.2% | 6.3% | +290 bps | - | | Diluted EPS | $0.32 | $0.17 | 88.2% | - | | Adjusted Diluted EPS | $0.35 | $0.15 | 133.3% | - | - The significant improvement in gross margin was attributed to a healthier sales mix, reduced promotional activity, and benefits from supply chain cost initiatives[5] Balance Sheet and Inventory - Inventory at the end of Q2 2025 was $316 million, an increase of approximately 6.4% compared to the prior year[6] - Net debt was reduced by $99 million, or 14.8%, year-over-year to $568 million at the end of the quarter[6] Business Outlook The company projects Q3 2025 revenue growth and adjusted diluted EPS, but withholds full-year guidance due to market uncertainties Third Quarter 2025 Outlook Q3 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Revenue (in millions) | $450M - $460M | | Revenue Growth (Ongoing Business) | 2.1% to 4.4% | | Gross Margin | Approx. 47.0% | | Operating Margin | Approx. 7.3% | | Adjusted Operating Margin | Approx. 8.3% | | Diluted EPS | $0.24 - $0.28 | | Adjusted Diluted EPS | $0.28 - $0.32 | Full-Year 2025 Outlook - The company is not providing a full-year 2025 outlook due to uncertainty around tariffs and related macro-economic conditions[8] Consolidated Financial Statements (Unaudited) This section presents unaudited consolidated financial statements for Q2 2025, highlighting net earnings of $26.8 million and total assets of $1,808.5 million Consolidated Condensed Statements of Operations Q2 2025 Statement of Operations Highlights (in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $474.2 | $425.2 | | Gross Profit | $224.0 | $183.2 | | Operating Profit | $40.7 | $29.1 | | Net Earnings Attributable to WWW | $26.8 | $14.2 | | Diluted EPS | $0.32 | $0.17 | Consolidated Condensed Balance Sheets Balance Sheet Highlights as of June 28, 2025 (in millions) | Account | June 28, 2025 | June 29, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $141.0 | $148.3 | | Inventories, net | $316.0 | $297.1 | | Total current assets | $801.2 | $790.8 | | Total assets | $1,808.5 | $1,796.3 | | Borrowings under revolving credit | $135.0 | $225.0 | | Long-term debt | $563.5 | $579.7 | | Total liabilities | $1,451.5 | $1,525.9 | | Stockholders' equity | $357.0 | $270.4 | Consolidated Condensed Statements of Cash Flows Year-to-Date Cash Flow Highlights (in millions) | Cash Flow Activity | YTD Ended June 28, 2025 | YTD Ended June 29, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(39.2) | $(10.5) | | Net cash (used in) provided by investing activities | $(11.9) | $89.9 | | Net cash provided by (used in) financing activities | $35.3 | $(117.6) | | Decrease in cash and cash equivalents | $(11.1) | $(36.3) | Non-GAAP Financial Measures and Reconciliations This section details the company's non-GAAP financial measures, including adjusted and constant currency results, with reconciliations to GAAP for Q2 and Q3 2025 guidance - The company uses non-GAAP measures like "adjusted" financial results and "ongoing business" results to enhance comparability. "Adjusted" results exclude items such as reorganization costs and environmental costs, while "ongoing business" excludes the financial results of the divested Sperry business[9] - Constant currency information is presented to exclude the impact of foreign currency exchange rate fluctuations, calculated by converting current period results using prior period exchange rates[9] Q2 2025 Reconciliation Tables Q2 2025 Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS | Description | GAAP Basis | Adjustments | Divestitures | As Adjusted | | :--- | :--- | :--- | :--- | :--- | | EPS - Fiscal 2025 Q2 | $0.32 | $0.03 | — | $0.35 | | EPS - Fiscal 2024 Q2 | $0.17 | $(0.03) | $0.01 | $0.15 | Q2 2025 Reconciliation of Reported Operating Margin to Adjusted Operating Margin | Description | GAAP Basis | As Adjusted | | :--- | :--- | :--- | | Operating Margin - Fiscal 2025 Q2 | 8.6% | 9.2% | | Operating Margin - Fiscal 2024 Q2 | 6.8% | 6.3% | Q3 2025 Guidance Reconciliation Tables Q3 2025 Guidance Reconciliation | Metric | GAAP Basis | Adjustments | As Adjusted | | :--- | :--- | :--- | :--- | | Operating Margin | 7.3% | 1.0% | 8.3% | | Diluted EPS | $0.24 - $0.28 | $0.04 | $0.28 - $0.32 |