Core Insights - Tom Kennedy, a longtime executive at Wolverine Worldwide, has retired after 10 years with the company, having served in various leadership roles since 2015 [1][2] - Justin Cupps has been appointed as the new president of Wolverine Worldwide's Work Group, overseeing several brands including Wolverine, Bates, and Merrell Work [3][4] - Wolverine Worldwide reported a 6.8% increase in total revenue for Q3 2025, reaching $470.3 million, compared to $440.2 million in the same period last year [6] Leadership Changes - Tom Kennedy retired in October 2023, having most recently served as president of the Work Group and held key roles including global president of Sperry [1][2] - Justin Cupps brings nearly 30 years of experience from brands like Under Armour and Adidas, and previously led a $1.25 billion portfolio at EssilorLuxottica [5][6] - CEO Chris Hufnagel expressed confidence in Cupps' ability to drive growth and innovation within the Work Group [4][10] Financial Performance - Wolverine Worldwide's Q3 2025 net earnings were $25.1 million, an increase from $23.2 million in the same period last year, with diluted earnings per share rising to 30 cents from 28 cents [7] - Saucony and Merrell brands showed significant growth, with Saucony's net sales increasing by 27.0% to $133.1 million and Merrell's by 5.1% to $167.3 million [7] - The Wolverine brand experienced an 8.2% decline in net sales to $45.3 million, and Sweaty Betty saw a 3.9% decline to $44.5 million [8] Strategic Outlook - CEO Hufnagel acknowledged the challenges faced by the Wolverine brand and the Work Group, indicating that progress has not met expectations [8][9] - Cupps' appointment is seen as a strategic move to accelerate necessary changes and strengthen the product pipeline, focusing on market segmentation and premium offerings [10][11] - The company aims to return to steady growth by addressing identified challenges and leveraging a proven playbook [9][10]

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 Worldwide's turnaround efforts are yielding positive results, with total revenue in Q3 2025 reaching $470.3 million, a 6.8% increase from $440.2 million in the same period last year [1] - The company exceeded its previous guidance for Q3, which projected net sales between $450 million and $460 million, and diluted earnings per share in the range of 24 to 28 cents [3] Financial Performance - Net earnings for Q3 were $25.1 million, up from $23.2 million the previous year, with diluted earnings per share increasing to 30 cents from 28 cents [2] - Ongoing total revenue, excluding the sold Sperry business, was also $470.3 million, reflecting a 6.9% increase from $440.1 million in the prior year [1] Brand Performance - Saucony and Merrell brands showed significant growth, with Saucony's net sales increasing by 27.0% to $133.1 million and Merrell's net sales rising by 5.1% to $167.3 million [4] - The Wolverine brand experienced an 8.2% decline in net sales to $45.3 million, while Sweaty Betty saw a 3.9% decrease to $44.5 million [5] Revenue Breakdown - International revenue increased by 13.5% to $242.7 million compared to the prior year, while direct-to-consumer revenue decreased by 5.0% to $106.8 million [6] - The company anticipates full fiscal year revenue to be between $1.855 billion and $1.870 billion, indicating growth of approximately 6.0% to 6.8% compared to the 2024 ongoing business [6] Strategic Outlook - The CEO emphasized the company's commitment to improving its operations through new strategies, talent, and processes aimed at enhancing product quality and shareholder value [7]

Core Insights - Wolverine World Wide, Inc. (WWW) reported strong brand performance in Q2 2025, with Saucony leading the portfolio, achieving a 41.5% year-over-year revenue increase and record sales, alongside a gross margin expansion of 560 basis points [1][11] - Key initiatives such as the Run As One campaign and flagship store openings in Tokyo and London enhanced consumer engagement and solidified Saucony's market position [2] - Merrell experienced a 10.7% revenue growth, marking its fourth consecutive quarter of growth, with nearly 600 basis points of gross-margin expansion driven by demand for lighter, faster trail footwear [3][11] - Sweaty Betty's revenues declined by 6% year-over-year, yet it achieved over 500 basis points of gross margin expansion through strategic campaigns and digital enhancements [4] - The Wolverine brand also improved revenues and expanded gross margin by over 400 basis points, supported by premium product launches and stronger marketing efforts [5][11] - Overall, Wolverine's Q2 performance indicates robust growth from Saucony and Merrell, with sequential improvements from Sweaty Betty and Wolverine, positioning the portfolio for sustainable growth [6][11] Competitive Landscape - Deckers Outdoor Corporation (DECK) reported strong results driven by flagship brands HOKA and UGG, with HOKA growing 19.8% year-over-year to $653.1 million and UGG increasing 18.9% to $265.1 million [8] - Tapestry, Inc. (TPR) saw an 8.3% year-over-year increase in net sales, with Coach leading the growth at 14% to $1.43 billion, while Kate Spade and Stuart Weitzman experienced declines [9] - Urban Outfitters Inc. (URBN) showcased strong performance across its brand portfolio, with all brands delivering positive comparable sales [10]

Core Insights - Wolverine World Wide, Inc. (WWW) maintained profitability momentum in Q2 2025, achieving record margins and healthy revenue growth [1] - The adjusted gross margin increased by 410 basis points year-over-year to 47.2%, driven by a favorable sales mix, reduced promotional activity, and supply-chain cost-saving initiatives [1][9] - The company expects long-term gross margins to remain between 45% and 47% due to pricing discipline and ongoing supply-chain optimization [5][9] Brand Performance - Saucony's gross margin rose by 560 basis points, benefiting from a strategic focus on premium products and higher average selling prices [2] - Merrell experienced a nearly 600 basis point increase in gross margin, driven by strong demand for modernized trail offerings [2] - Sweaty Betty improved by over 500 basis points due to its shift to premium, full-price positioning, while the Wolverine brand saw a gross margin increase of over 400 basis points [3] Operating Profitability - Adjusted operating margin increased by 290 basis points year-over-year to 9.2%, exceeding the company's 7.2% outlook [4] - The increase in operating profitability was attributed to revenue outperformance and SG&A leverage, allowing for reinvestment in marketing and talent [4] Future Expectations - For Q3, Wolverine anticipates a gross margin rise of 170 basis points to 47% and an adjusted operating margin increase of 60 basis points to 8.3% [5] - The company has taken measures to mitigate the impact of higher tariffs through sourcing diversification and selective price increases [6] Stock Performance and Valuation - WWW stock surged 76.6% over the past three months, outperforming the Zacks Shoes and Retail Apparel industry, which grew by 18.7% [7] - The company trades at a forward price-to-sales ratio of 1.27X, below the industry average of 2.01X [10] Earnings Estimates - The Zacks Consensus Estimate for WWW's current financial year's earnings implies a year-over-year growth of 46.2%, with an 18.8% growth forecast for the next financial year [11] - Earnings estimates for 2025 have been revised upward by 2 cents per share, while 2026 estimates increased by 4 cents in the past 30 days [11]

Core Insights - Wolverine World Wide, Inc. (WWW) reported strong second-quarter 2025 results, with revenues and earnings exceeding expectations, leading to a 14.8% increase in share price [1][10][17] Financial Performance - Adjusted earnings were 35 cents per share, surpassing the Zacks Consensus Estimate of 23 cents and significantly up from 15 cents in the prior-year quarter [4][10] - Total revenues reached $474.2 million, reflecting an 11.5% year-over-year increase and exceeding the consensus estimate of $450 million [5][10] - Direct-to-consumer revenues were $111.6 million, down 1.4% year over year, while international revenues increased by 15.7% to $250 million [5][11] Segment Performance - Active Group revenues rose 16.2% year over year to $355.5 million, surpassing the consensus estimate of $327.9 million [6] - Work Group revenues increased 2.4% year over year to $107.5 million, beating the consensus estimate of $104 million [6] - Revenues from the Other segment fell 21.7% year over year to $11.2 million, lagging behind the consensus estimate of $14.1 million [6] Brand Performance - Merrell's revenues increased by 10.7% to $157.9 million, while Saucony's revenues surged 41.5% to $144.3 million [7] - Wolverine's revenues declined by 7.5% to $37.1 million, and Sweaty Betty's revenues decreased by 6.1% to $41.3 million [7] Margins and Costs - Adjusted gross profit was $224 million, up 22.3% year over year, with a record gross margin of 47.2%, an increase of 410 basis points [8][10] - Adjusted operating costs rose 15.7% to $180.6 million, with the metric as a percentage of revenues increasing by 290 basis points to 9.2% [8] Future Outlook - For the third quarter, revenues are projected to be between $450 million and $460 million, indicating growth of 2.1-4.4% from the same period last year [14] - Expected gross margin for the third quarter is 47%, with adjusted earnings per share projected to be between 28-32 cents [16][17]

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]

Financial Performance - Q1 2025 - Adjusted revenue reached $412 million, a 5.5% year-over-year increase, or 6.7% on a constant currency basis[13, 42] - Adjusted gross margin improved to 47.3%, an increase of 80 basis points year-over-year[13, 42] - Adjusted EPS increased significantly by 260% year-over-year to $0.18, or 300% on a constant currency basis[13, 42] - Net debt decreased by $83 million compared to the prior year, reaching $604 million[49, 50] Full Year 2024 Performance - Adjusted revenue for FY24 was $1.75 billion[4] - Adjusted EPS for FY24 was $0.91, a 507% increase compared to FY23[4, 13] - Net debt reduced by $246 million in 2024[13] - Inventory lowered by $133 million in 2024[13] Segment Performance - Q1 2025 - Active Group revenue increased by 12.7% year-over-year to $327 million[44] - Work Group revenue decreased by 17% year-over-year to $75 million[46] Future Outlook - The company withdrew its 2025 guidance due to uncertainty around tariffs and related macro-economic conditions[52] - The company expects Q2 2025 revenue to be in the range of $440 million to $450 million, an increase of approximately 4.9% at the mid-point[53] - The company expects Q2 2025 adjusted operating margin to expand approximately 90 basis points year-over-year[53]