Wolverine Worldwide Reports Third Quarter 2025 Results

Wolverine World Wide, Inc. (NYSE:WWW) today reported financial results for the third quarter ended September 27, 2025.

"We delivered a solid quarter with Merrell, Saucony, and Sweaty Betty all exceeding expectations. Our disciplined execution, coupled with another record gross margin quarter, delivered better-than-anticipated earnings per share," said Chris Hufnagel, President and Chief Executive Officer of Wolverine Worldwide. "While we are pleased with our progress, we recognize there is still more work to do. Our teams remain focused on executing our brand-building model at pace while navigating a dynamic environment. As we approach the end of a pivotal year for Wolverine Worldwide, I'm encouraged by the improvements we've made across the enterprise – new strategies, new talent, new capabilities, new processes, new culture – all aimed to help us build awesome products, tell amazing stories, and drive the business in the relentless pursuit to make every day better and deliver value to our shareholders."

FINANCIAL HIGHLIGHTS

Financial results for 2025, and comparable results from 2024, in each case, for our ongoing business exclude the results of the Sperry business, which was sold in January 2024. Tables have been provided in the back of this release showing the impact of these adjustments on our financial results.

THIRD QUARTER 2025 FINANCIAL HIGHLIGHTS

Gross margin was 47.5% compared to 45.1% in the prior year. The increase was primarily due to the benefit of supply chain cost initiatives, lower promotional activity, and the positive impact from recent price increases, partially offset by the impact of incremental U.S. tariffs.

Inventory at the end of the quarter was $293 million, down $2 million, or approximately 0.7%, compared to the prior year.

Net Debt at the end of the quarter was $543 million, down $20 million, or approximately 3.6%, compared to the prior year.

FULL-YEAR 2025 OUTLOOK

The Company's outlook reflects the impact of foreign currency and the inclusion of a 53rd week in 2025, which will affect annual comparisons. Comparable results from 2024 for our ongoing business exclude the financial impact of Sperry which was sold in January 2024.

For fiscal year 2025, the Company expects:

• Revenue to be approximately $1.855 billion to $1.870 billion, representing growth of approximately 6.0% to 6.8% compared to the 2024 ongoing business, and constant currency growth of approximately 5.1% to 6.0%.
• Gross margin to be approximately 47.1%, up 280 basis points compared to 2024 gross margin.
• Operating margin to be approximately 7.8%, up 220 basis points compared to 2024 operating margin, and adjusted operating margin to be approximately 8.9%, up 160 basis points compared to 2024 adjusted operating margin.
• The effective tax rate to be approximately 16.0%.
• Diluted earnings per share in the range of $1.08 to $1.13 and adjusted diluted earnings per share in the range of $1.29 to $1.34.
• Diluted weighted average shares of approximately 81.5 million.

CHANGE IN INVENTORY ACCOUNTING

During the third quarter of 2025, the Company elected to change its method of accounting for certain inventory in the U.S. from the last-in, first-out ("LIFO") method to the first-in, first-out ("FIFO") inventory costing method. The Company applied this change in inventory costing method by retrospectively adjusting its historical financial statements. Tables have been provided in the back of this release showing the impact of the accounting policy change.

NON-GAAP FINANCIAL MEASURES

Measures referred to in this release as "adjusted" financial results and the financial results of the "ongoing business" are non-GAAP measures. Adjusted financial results exclude environmental and other related costs net of recoveries, non-cash impairment of long-lived assets, reorganization costs, pension settlement costs, financing transaction costs, gain on sale of business, trademarks and long-lived assets, and costs associated with divestitures. The financial results of the ongoing business exclude financial results from the Sperry business. The Company also presents constant currency information, which is a non-GAAP measure that excludes the impact of fluctuations in foreign currency exchange rates. The Company calculates constant currency basis by converting the current-period local currency financial results using the prior period exchange rates and comparing these adjusted amounts to the Company's current period reported results. The Company believes providing each of these non-GAAP measures provides valuable supplemental information regarding its results of operations, consistent with how the Company evaluates performance.

The Company has provided a reconciliation of each of the above non-GAAP financial measures to the most directly comparable GAAP financial measure. The Company believes these non-GAAP measures provide useful information to both management and investors because they increase the comparability of current period results to prior period results by adjusting for certain items that may not be indicative of core operating results and enable better identification of trends in our business. The adjusted financial results are used by management to, and allow investors to, evaluate the operating performance of the Company on a comparable basis. Management does not, nor should investors, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

EARNINGS CALL INFORMATION

The Company will host a conference call today at 8:30 a.m. ET to discuss these results and current business trends. The conference call will be broadcast live and accessible under the "Investor Relations" tab at www.wolverineworldwide.com. A replay of the conference call will be available on the Company's website for a period of approximately 30 days.

ABOUT WOLVERINE WORLDWIDE

Founded in 1883, Wolverine World Wide, Inc. (NYSE:WWW) is one of the world's leading designers, marketers, and licensors of branded casual footwear and apparel, performance outdoor and athletic footwear and apparel, kids' footwear, industrial work boots and apparel, and uniform footwear. The Company's portfolio includes Merrell®, Saucony®, Sweaty Betty®, Hush Puppies®, Wolverine®, Chaco®, Bates®, HYTEST®, and Stride Rite®. Wolverine Worldwide is also the global footwear licensee of the popular brands Cat® and Harley-Davidson®. Based in Rockford, Michigan, for more than 140 years, the Company's products are carried by leading retailers in the U.S. and globally in approximately 170 countries and territories. Wolverine Worldwide is a Great Place to Work® Certified™ company. For additional information, please visit our website, www.wolverineworldwide.com.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements, including statements regarding the Company's focus on executing its brand-building model at pace while navigating in a dynamic environment; the Company's outlook for 2025 including, among other results: reported and constant currency revenue; reported gross margin; reported and adjusted operating margin; reported and adjusted net earnings; reported and adjusted diluted earnings per share; diluted weighted average shares; and effective tax rate. In addition, words such as "estimates," "anticipates," "believes," "forecasts," "step," "plans," "predicts," "focused," "projects," "outlook," "is likely," "expects," "intends," "should," "will," "confident," variations of such words, and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions ("Risk Factors") that are difficult to predict with regard to timing, extent, likelihood, and degree of occurrence. Risk Factors include, among others: changes in general economic conditions, employment rates, business conditions, interest rates, tax policies, and other factors affecting consumer spending and confidence in the markets and regions in which the Company's products are sold; increases or changes in duties, tariffs, quotas or applicable assessment in countries of import and export; the inability for any reason to effectively compete in global footwear, apparel and direct-to-consumer markets; the inability to maintain positive brand images and anticipate, understand and respond to changing footwear and apparel trends and consumer preferences; the inability to effectively manage inventory levels; foreign currency exchange rate fluctuations; currency restrictions; supply chain and capacity constraints, production and distribution disruptions, including service interruptions at shipping and receiving ports, reduction in operating hours, labor shortages, and facility closures resulting in production delays at the Company's manufacturers, quality issues, price increases or other risks associated with foreign sourcing; the cost, including the effect of inflationary pressures, and availability of raw materials, inventories, services and labor for contract manufacturers; changes in relationships with, including the loss of, significant wholesale customers; risks related to the significant investment in, and performance of, the Company's direct-to-consumer operations; risks related to expansion into new markets and complementary product categories; the impact of seasonality and unpredictable weather conditions; the impact of changes in general economic conditions, potential economic slowdown and/or the credit markets on the Company's manufacturers, distributors, suppliers, joint venture partners and wholesale customers; changes in the Company's effective tax rates; failure of licensees or distributors to meet planned annual sales goals or to make timely payments to the Company; the risks of doing business in developing countries, and politically or economically volatile areas; the ability to secure and protect owned intellectual property or use licensed intellectual property; legal compliance and litigation risks, including with respect to federal, state and local laws and regulations relating to the protection of the environment, environmental remediation and other related costs, and environmental effects on human health; risks of breach of the Company's databases or other systems, or those of its vendors, which contain certain personal information, payment card data or proprietary information, due to cyberattack or other similar events; strategic actions, including new initiatives and ventures, acquisitions and dispositions, and the Company's success in integrating acquired businesses, including Sweaty Betty®; risks related to stockholder activism; the risk of impairment to goodwill and other intangibles; the success of the Company's restructuring and realignment initiatives undertaken from time to time; changes in future pension funding requirements and pension expenses; and additional factors discussed in the Company's reports filed with the Securities and Exchange Commission and exhibits thereto. The foregoing Risk Factors, as well as other existing Risk Factors and new Risk Factors that emerge from time to time, may cause actual results to differ materially from those contained in any forward-looking statements. Given these or other risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Furthermore, the Company undertakes no obligation to update, amend, or clarify forward-looking statements whether as a result of new information, future events or otherwise.

The following tables contain information regarding the non-GAAP financial measures used by the Company in the presentation of its financial results:

* To supplement the consolidated condensed financial statements presented in accordance with Generally Accepted Accounting Principles ("GAAP"), the Company describes what certain financial measures would have been if environmental and other related costs net of recoveries, non-cash impairment of long-lived assets, reorganization costs, financing transaction costs, pension settlement costs, gain on sale of business, trademarks and long-lived assets, and costs associated with divestitures were excluded. The financial results of the ongoing business for 2024 exclude financial results from the Sperry business. The Company believes these non-GAAP measures provide useful information to both management and investors by increasing comparability to the prior period by adjusting for certain items that may not be indicative of the Company's core ongoing operating business results and to better identify trends in the Company's ongoing business. The adjusted financial results are used by management to, and allow investors to, evaluate the operating performance of the Company on a comparable basis

The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. The Company believes providing constant currency information provides valuable supplemental information regarding results of operations, consistent with how the Company evaluates performance. The Company calculates constant currency by converting the current-period local currency financial results using the prior period exchange rates and comparing these adjusted amounts to the Company's current period reported results.

Management does not, nor should investors, consider such non-GAAP financial measures in isolation from, or as a substitution for, financial information prepared in accordance with GAAP. A reconciliation of all non-GAAP measures included in this press release, to the most directly comparable GAAP measures are found in the financial tables above.

CHANGE IN ACCOUNTING PRINCIPLE

FINANCIAL SUMMARY

(Unaudited)

(In millions, except per share amounts)

The Company announced that it has changed its inventory costing method for certain domestic inventory from last-in, first-out ("LIFO") to first-in, first-out ("FIFO"). The Company believes that the new methodology better reflects the physical flow of goods, simplifies the financial close process, conforms the accounting for all of the Company's distribution warehouse inventory to the FIFO method, improves comparability with peers, and aligns with how the business is managed. Financial results for fiscal years 2025, 2024 and 2023 were adjusted to reflect the impact of the methodology change as follows:

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Jared Filippone, CFA

[email protected]