WWW Q1 Earnings Beat Estimates, Revenues Rise Y/Y, Stock Gains 10%

Core Insights - Wolverine World Wide, Inc. (WWW) reported strong first-quarter 2025 results, with revenues and earnings exceeding expectations and showing year-over-year growth [1][3] - The company's shares increased by 10.3% following the announcement of these results [1] Financial Performance - Adjusted earnings were 18 cents per share, surpassing the Zacks Consensus Estimate of 11 cents, and significantly up from 5 cents in the prior-year quarter [3] - Total revenues reached $412.3 million, a 4.4% increase year over year, and exceeded the Zacks Consensus Estimate of $395 million [3] - Direct-to-consumer revenues decreased by 9.4% year over year to $96.4 million, while international revenues increased by 16.4% to $207.8 million [3] Segment Performance - Active Group revenues rose by 12.7% year over year to $326.7 million, beating the consensus estimate of $298.2 million [4] - Work Group revenues fell by 17% year over year to $74.8 million, below the consensus estimate of $84.1 million [4] - Other segment revenues dropped by 28% year over year to $10.8 million, also lagging behind the consensus estimate of $13.1 million [4] Brand Performance - Merrell's revenues increased by 13.2% year over year to $150.6 million, while Saucony's revenues improved by 29.6% to $129.8 million [5] - Wolverine's revenues declined by 9.2% to $37.4 million, and Sweaty Betty's revenues fell by 15.9% to $38 million [5] Margins and Costs - Adjusted gross profit was $194.8 million, a 7.3% increase year over year, with an adjusted gross margin of 47.3%, up 80 basis points [6] - Adjusted operating costs rose by 4.9% to $170.2 million, with the metric as a percentage of revenues increasing by 100 basis points to 6% [6] Balance Sheet and Cash Flow - The company ended the quarter with cash and cash equivalents of $106.5 million and long-term debt of $565.8 million [7] - Net debt decreased by 12.1% year over year to $604 million, and inventory was down 23.6% to $271 million [7] Future Outlook - For the second quarter, the company expects revenues between $440 million and $450 million, indicating growth of 3.7-6% year over year [9] - Projected operating margin is 6.7%, with adjusted operating margin expected to be 7.2%, suggesting an increase of 90 basis points from the previous year [10] - Earnings per share are anticipated to be between 17 cents and 22 cents, with adjusted earnings per share expected between 19 cents and 24 cents [10]