Wolverine World Wide (WWW) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue increased 6.8% year-over-year to $506.4 million, with adjusted EPS up 14.3% to $0.40, driven by strong performance in Merrell and Saucony and progress in Sweaty Betty and Wolverine.

• Net earnings attributable to shareholders rose 16.4% to $31.2 million, and operating profit increased 16.2% to $47.3 million for the quarter.

• Seven consecutive quarters of year-over-year growth were achieved, prompting a raised full-year 2026 outlook for revenue, margins, and EPS.

• Inventory reduced by 17% and net debt decreased by 22% year-over-year, strengthening the balance sheet.

• Multi-year improvement in financial performance, with ongoing revenue and adjusted EPS growth since 2023.

Financial highlights

• Q2 2026 revenue was $506.4 million, up 6.8% year-over-year, exceeding guidance; gross margin was 46.5%, down 70 bps due to higher tariffs.

• Adjusted operating margin expanded by 80 bps to 10.0%; adjusted diluted EPS rose to $0.40 from $0.35 year-over-year.

• Operating profit increased 16.2% to $47.3 million; net interest expense decreased to $7.1 million for the quarter.

• Inventory at quarter-end was $269 million, down $55 million year-over-year; cash and cash equivalents increased 12.4% to $159 million.

• Net debt at quarter-end was $443 million, down $125 million year-over-year.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $1.98–$2.0 billion (6.2% reported growth at midpoint), with gross margin outlook at 46.9% and adjusted operating margin at 9.9%.

• Adjusted EPS guidance for FY2026 is $1.55–$1.65; diluted EPS guidance is $1.48–$1.58.

• Q3 2026 revenue guidance is $495–$500 million, with adjusted EPS of $0.42–$0.45 and gross margin expected at 47.4%.

• Operating free cash flow guidance raised to $115–$130 million; capital expenditures expected to be approximately $20 million.

• Management expects operating cash flow to be sufficient for working capital, organic growth, debt reduction, dividends, and general corporate purposes.