Wolverine Worldwide Beats Q1 Expectations Across the Board as Saucony Posts Record Quarter

Wolverine Worldwide delivered a first-quarter performance that exceeded expectations on every major financial metric, with its two biggest brands — Merrell and Saucony — leading what CEO Chris Hufnagel described as a company that is becoming a better brand builder.

Merrell extends U.S. hike market share streak to 12 of the last 13 quarters; company raises full-year profit outlook despite tariff headwinds and Iran conflict uncertainty

Revenue rose 11% year over year to $457.6 million, beating the high end of the company's own guidance, while adjusted operating margin expanded 140 basis points and adjusted diluted earnings climbed 32%. Net income reached $20.2 million, up from $12.1 million in the same period a year ago. International revenue surged 20.1% to $249.6 million, or 12.8% on a constant-currency basis, underscoring the increasingly global nature of the company's recovery.

"The first quarter was a good start to the year, exceeding our expectations across all key financial metrics," Hufnagel said on the earnings call. "I believe we're better brand builders today, led by Merrell and Saucony, with encouraging progress now evident across our broader portfolio."

Merrell Extends Market Share Streak

Merrell posted revenue of $169.7 million in the quarter, up 12.7% on a reported basis and 8.7% in constant currency, comping against a 14% increase in the same period of 2025. Growth was broad-based across most regions and categories, with both wholesale and direct-to-consumer channels contributing.

The U.S. hike category, which had been under pressure for several quarters, returned to growth — up 6% in Q1 2026 after ending flat in Q4 2025. Merrell extended its market share gains in the category to 12 of the last 13 quarters.

"Hike being up 6% is encouraging for the category in general," Hufnagel said. "And Merrell gaining share 12 of the last 13 quarters and being the industry leader — that bodes well for Merrell's prospects as we work our way through '26 and beyond."

Product momentum was driven by the Agility Peak 6, the brand's premier trail run franchise launch of the quarter, along with continued strong performance from the Moab Speed 2 and the iconic Moab 3. Lifestyle extensions — including a woven slide version of the Moab 2 — performed well in Tier 0 distribution and on merrell.com. A limited collaboration on the Moab 3 with South Korean lifestyle brand Khakis sold out in Japan and South Korea within minutes, reflecting a deliberate push into high-influence trend markets across Asia Pacific.

Merrell also launched a new brand platform, "It Starts Outside," in the first quarter, which generated strong year-over-year increases in brand search interest. The company plans record marketing investment in Merrell this year and kicked off a title sponsorship of the Skyrunner series, a global trail running circuit. The brand is also marking its 40th anniversary in 2026.

Saucony Posts Record Quarter

Saucony reached its highest-ever quarterly revenue, posting $155.9 million — up 20.1% on a reported basis and 15.2% in constant currency. Growth was broad-based across all channels, regions, and categories, with performance and lifestyle running both contributing.

On the performance side, the brand launched the Endorphin Azura in February, a lightweight super trainer that quickly became a top seller both on saucony.com and at wholesale. The Endorphin Pro 5 followed in March, driving further momentum for the collection at U.S. retail. At the Boston Marathon, Saucony ranked as the second most-worn brand among women — a signal of growing credibility in the competitive performance running space.

In lifestyle, the brand continued to build cultural heat through collaborations with Sneaker Politics, 316, Greyson, Engineered Garments, and Studio Nicholson. U.S. lifestyle sell-through rates exceeded the prior year, a data point management cited as evidence of sustained consumer demand.

Saucony is also expanding its key city strategy — which began in London — into Paris this year, with a new pioneer store, a title sponsorship of the Eiffel Tower 10K, and a series of planned brand activations.

"I remain confident we have a very special opportunity in Saucony," Hufnagel said. "Consumer interest in the brand is reaching record levels around the world."

The brand faces its toughest comparable quarter ahead, lapping over 40% growth from Q2 2025. CFO Taryn Miller acknowledged that Q2 will represent the brand's lowest growth rate of the year, but said the full-year outlook of low- to mid-teens growth remains intact.

Tariffs, Iran Conflict Add Complexity to Outlook

The strong top-line performance came despite a 270-basis-point unmitigated tariff headwind on gross margin, which held flat at 47.6% year over year. Management pointed to the stable margin as evidence that structural improvements are taking hold across the business.

The company disclosed it has paid approximately $36 million in IEEPA tariffs and is actively pursuing refunds — though that potential benefit is not reflected in current guidance. The unmitigated full-year tariff impact is now estimated at approximately $50 million, down from a prior estimate of $60 million, reflecting a temporary reduction in rates through July.

The Iran conflict has also introduced new uncertainty. Management confirmed that the Middle East represents approximately 1% of total revenue, and that order cancellations and reduced forecasts from distributor markets in the region have been incorporated into the full-year outlook. Rising oil prices tied to the conflict are also pushing freight costs higher, a factor embedded into the company's revised gross margin guidance.

"We've demonstrated the ability to successfully navigate a variety of challenges over the past three years," Hufnagel said. "While we're encouraged by the progress, we're still not satisfied, and we believe there's much more opportunity ahead."

Strategic Initiatives: AI, E-Commerce, and Up-Funnel Investment

Beyond brand performance, Wolverine Worldwide is embedding artificial intelligence into its operations, with a stated goal of becoming faster, more agile, and more efficient. The company is also modernizing its e-commerce platform, which Hufnagel described as central to its ambitions as a direct-to-consumer retailer.

The company has been deliberately shifting its marketing investment up the funnel — reducing reliance on performance-driven conversion spending in favor of broader awareness campaigns. Hufnagel acknowledged the move creates near-term pressure on DTC results but called it the right long-term approach for building premium global brands. Direct-to-consumer revenue rose 3% to $99.3 million, approximately flat in constant currency.

"When you make that shift up the funnel and you become less promotional, it certainly does put pressure short term on the DTC business," Hufnagel said. "We think it's the absolute right thing to do for the business for the long term."

Full-Year 2026 Guidance

Wolverine Worldwide maintained its full-year revenue guidance and raised its profitability outlook.

Full-year 2026:

• Revenue: $1.96 billion to $1.985 billion (approximately 5.2% reported growth at the midpoint; unchanged)

• Adjusted diluted EPS: Raised to $1.43–$1.58, up from prior guidance of $1.35–$1.50

• Second quarter 2026:

• Revenue: $495 million to $500 million (approximately 4.9% reported growth at the midpoint)

• Adjusted diluted EPS: $0.35–$0.38

"We're encouraged by our first quarter performance, which reinforces our belief that the business is operating from a stronger foundation," Miller said. "Brand momentum is becoming more evident and the benefits of the work we've done are translating into improved financial performance."