Wolverine Worldwide posts sound second quarter performance

“Our second quarter results exceeded our expectations, which led to the strongest revenue growth we've seen in several years. This growth, coupled with another quarter of record gross margin, helped more than double our earnings per share year-over-year”, commented Chris Hufnagel, President and Chief Executive Officer of Wolverine Worldwide.
Second Quarter Results
In the second quarter of the 2025 financial year, which ended on the 28th of June, the company’s revenue increased by 11.5% (or 10.3% on a constant currency basis), as compared to the same period last year, reaching 474.2 million US dollars. The Merrell and Saucony brands continue to drive growth at Wolverine Worldwide.
The former contributed 157.9 million US dollars to the company's revenue in the second quarter, representing a 10.7% year-on-year growth (or 9.1% on a constant currency basis). The latter contributed 144.3 million US dollars, representing a 41.5% year-on-year growth (or 40.4% on a constant currency basis).
Wolverine Worldwide reported an improvement in gross margin of 410 basis points, rising from 43.1% in the second quarter of the 2024 financial year to 47.2% in this second quarter. This was due to a healthier sales mix, lower promotional activity and the positive impact of supply chain cost initiatives. The company said that the US tariff shifts had minimal incremental impact.
In the second quarter of this year, the company’s diluted earnings per share totalled 0.32 US dollars, an increase of 88.2% from 0.17 US dollars in the same period last year.
Wolverine’s inventory grew by 6.4% to 316 million US dollars at the end of the quarter, as compared to the same period last year. Its net debt decreased by 99 million US dollars, reaching 568 million US dollars by the end of the quarter.
Third Quarter Outlook
For the third quarter of 2025, Wolverine Worldwide expects revenue to be between 450 and 460 million US dollars, representing constant currency growth of between 1.5% and 3.8%. Diluted earnings per share are expected to be in the range of 0.24 to 0.28 US dollars.
“We’re executing our new brand-building model at pace, and we’ve made meaningful strides in improving the profitability of the business, along with strengthening the balance sheet. I remain confident in the things we can control as we navigate continued uncertainties due to the global trade and consumer environment”, concluded Chris Hufnagel.
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