Wolverine Beats Tariff Turmoil—Is A Major Comeback Underway?

American footwear and apparel manufacturer Wolverine Worldwide Inc. (NYSE:WWW) is navigating a challenging landscape marked by tariffs and cautious consumer spending, yet the company is finding ways to thrive. Wolverine reported on Wednesday that its second-quarter 2025 revenue rose 11.5% year-over-year to $474.2 million, beating the consensus estimate of $447.4 million.

• WWW is challenging its highest level of the year. Track it now here.

The increase was driven by growth across its Active and Work Groups.

The Active Group led the performance with revenue increasing 16.2% (+14.3% at constant currency) to $355.5 million. The Work Group saw a modest 2.4% growth to $107.5 million.

“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,” said Chris Hufnagel, president and CEO of Wolverine Worldwide.

Merrell brand sales increased by 10.7% to $157.9 million. Saucony brand sales jumped 41.5% to $144.3 million. Wolverine brand sales declined 7.5% to $37.1 million. Sweaty Betty brand sales decreased 6.1% to $41.3 million.

Guidance: For the third quarter, Wolverine expects revenue to be between $450 million and $460 million, compared to the consensus of $453.91 million.

Gross margin to be approximately 47%, up 170 basis points year over year.

Operating margin to be approximately 7.3%, down 70 basis points, and adjusted operating margin to be approximately 8.3%, up 60 basis points.

The fashion product manufacturer expects adjusted earnings per share of 28-32 cents compared to the consensus of 25 cents.

Full-Year 2025 Outlook: Due to uncertainty around tariffs and related macroeconomic conditions, the company said it is not providing a full-year 2025 outlook at this time.

Analyst Reaction:

Telsey Advisory on Thursday said, “Impressively, Saucony experienced a nice acceleration from Q1, while Wolverine and Sweaty Betty also posted sequential improvement, although they remain down YoY. We remain encouraged by WWW's positive growth in Q2 and its commitment to tightly manage inventories while paying down debt.”

Analyst Dana Telsey says the overall footwear market is still facing difficulties due to tariffs and cautious consumer spending. However, Wolverine Worldwide has a strategy to handle the tariff situation by reducing its impact, managing through it, and finding ways to grow.

The effect of tariffs is now smaller thanks to updated rates. Even though sales trends improved in Q2, the company still has work to do across its various brands. Challenges also remain in sourcing, the overall economy, and its exposure to the wholesale market.

Despite stronger sales in Q2, the company still has work to do across its brands. Challenges like sourcing issues, economic conditions, and reliance on wholesale remain obstacles.

Telsey maintained a Market Perform rating and raised the price forecast from $17 to $29, reflecting solid momentum and increased estimates.

Keybanc maintains Wolverine World Wide with an Overweight, raising the price forecast from $25 to $32.

UBS maintains Wolverine World Wide with a Buy, raising the price forecast from $30 to $36.

WWW Price Action: Wolverine World Wide shares were up 2.56% at $27.67 at the time of publication on Thursday, according to Benzinga Pro.

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