Wolverine World Wide reported fourth‑quarter 2025 revenue of $517.5 million, up 4.6% from $493.8 million a year earlier, and full‑year revenue of $1.874 billion, a 6.8% increase over $1.758 billion in 2024. Adjusted diluted earnings per share rose to $0.45, a 12% increase from $0.40 in the same quarter a year earlier, and the company beat the consensus estimate of $0.44 by $0.01. The fourth‑quarter gross margin expanded to 47.0% from 43.6% in 2024, while the adjusted operating margin grew to 11.0% from 9.9% a year earlier.
The growth was driven largely by the Active Group, where Merrell and Saucony contributed the bulk of the revenue increase. The Work Group, in contrast, experienced a modest decline in revenue, reflecting a temporary marketplace reset. The company’s direct‑to‑consumer channel continued to improve, supporting the overall margin expansion.
Gross‑margin growth was supported by product‑cost savings, a favorable mix shift toward higher‑margin full‑price sales, and recent price increases. Tariff mitigation actions also helped offset the impact of higher U.S. tariffs, allowing the company to maintain a healthy margin profile despite rising input costs.
The company’s adjusted operating margin of 11.0% reflects disciplined cost management and operational leverage. Net debt fell to $415 million, and a $15 million share‑repurchase was completed during the quarter. The earnings beat and revenue beat of $3.55 million over the consensus estimate of $513.95 million underscore the company’s ability to execute its turnaround strategy.
Looking ahead, Wolverine raised its 2026 revenue guidance to $1.960 billion–$1.985 billion and adjusted diluted EPS to $1.35–$1.50. Management noted that gross‑margin guidance for 2026 is down 130 basis points due to higher tariff costs, only partially offset by mitigation actions. The company remains focused on expanding its Active Group while addressing the near‑term headwind posed by Sweaty Betty.
"We exceeded our expectations across all key metrics in the fourth quarter, finishing a solid year for the Company. Our biggest brands are growing around the world, direct‑to‑consumer continues to improve, earnings per share increased meaningfully year‑over‑year, and I believe we’re finding our footing where we’ve underperformed," said President and CEO Chris Hufnagel. "I’m pleased with our progress in transforming the Company and encouraged by the momentum we’ve carried into 2026. We’re focused squarely on executing our brand‑building model with pace and distinction—building awesome products, telling amazing stories, and driving the business each day." Hufnagel added, "Sweaty Betty remains a near‑term headwind as the brand establishes a healthier foundation for future growth."
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