WWW · Wolverine World Wide, Inc.

Wolverine World Wide delivered a strong start to 2026, with Q1 revenue growing 11% to $457.6 million, driven by 13.7% growth in the Active Group led by double-digit increases at Merrell (12.7%) and Saucony (20.1%). International revenue surged 20.1% reported (12.8% constant currency), while direct-to-consumer rose 3.0%. Gross margin held steady at 47.6%, reflecting favorable full-price selling and price increases, offset by higher U.S. tariffs. Operating expenses increased 5.0% to $183.9 million, but operating margin expanded 230 basis points to 7.4%, with adjusted operating margin up 140 bps to 7.7%. GAAP diluted EPS rose 60% to $0.24, and adjusted EPS increased 31.6% to $0.25. CEO Chris Hufnagel highlighted improved brand building across the portfolio, particularly Merrell and Saucony, amid a dynamic environment. Balance sheet strengthened with cash up 12.3% to $120 million, inventory flat at $280 million, and net debt down 14.1% to $519 million. The company raised full-year 2026 guidance, now expecting revenue of $1.960-$1.985 billion (4.6-5.9% growth), gross margin of 46.4% (down 90 bps YoY), operating margin of 9.2% (up 120 bps), and adjusted EPS of $1.43-$1.58 (previously $1.35-$1.50). This reflects confidence in strategy execution despite foreign currency headwinds and the 52-week year impact versus 2025's 53 weeks.