Wolverine raises 2026 outlook as Merrell and Saucony drive growth

By Tom Whitfield

Wolverine Worldwide reported third-quarter 2026 revenue of $505.4 million, up 7.5% from $470.3 million, and raised its full-year outlook after an eighth consecutive quarter of growth.

The Rockford, Mich.-based footwear group posted net earnings of $67.1 million, compared with $26.3 million a year earlier. Diluted earnings per share reached 78 cents, versus 30 cents. Yahoo Finance reported that analysts expected net sales of $495.3 million to $505 million and EPS of 45 cents to 48 cents. Wolverine finished above both ranges.

CEO Chris Hufnagel described a “strong” third quarter, “led by its two largest brands and disciplined execution across the business.”

Brand sales split

• Merrell: Net sales rose 6.5% to $178.2 million, from $167.3 million.
• Saucony: Net sales increased 19.4% to $158.9 million, from $133.1 million.
• Wolverine: Net sales declined 4.1% to $43.5 million, from $45.3 million.
• Sweaty Betty: Net sales fell 7% to $41.4 million, from $44.5 million.

The brand split matters for sourcing because Merrell generated more sales than Saucony, but Saucony delivered the faster percentage increase during the quarter.

International revenue rose 11.7% to $271.2 million, while direct-to-consumer revenue increased 2.2% to $109.1 million. Net debt ended the quarter at $399 million, down $143 million, or approximately 26.4%, from the prior year.

How much came from tariff refunds?

Wolverine said on Thursday that it received $35.3 million in International Emergency Economic Powers Act (IEEPA) tariff refunds during the third quarter, including interest. As of October 3, the company recorded:

• $32.6 million as a reduction to cost of goods sold.
• $1.3 million as a reduction to interest expense.
• $1.4 million as a reduction to inventory.

The refunds lifted gross margin, operating margin and adjusted operating margin by approximately 640 basis points each. After tax, they also lifted diluted EPS and adjusted diluted EPS by approximately 31 cents each.

The release did not connect those gains to footwear sales or supplier price changes. The accounting trail runs through cost, interest and inventory, which makes the benefit distinct from underlying product demand.

Full-year EPS guidance includes an approximate 32-cent refund benefit. Buyers should keep that amount separate from underlying product economics when assessing margin durability.

What changed in the 2026 outlook?

Hufnagel called the eighth growth quarter “further evidence that our transformation story is also a growth story.” He added that a healthier balance sheet provided “greater capacity to invest behind our brands and the opportunities we see ahead.”

Based on year-to-date results and expectations for the final quarter, Wolverine raised two guidance ranges:

• Revenue: Approximately $2.00 billion to $2.01 billion, representing growth of approximately 6.7% to 7.2% from 2025. The previous range was approximately $1.98 billion to $2.00 billion.
• Diluted EPS: $1.88 to $1.92, including an approximate 32-cent IEEPA refund benefit. The previous range was $1.48 to $1.58.

The higher revenue range offers the stronger sourcing signal. The EPS increase also contains a large refund-assisted component that does not measure additional footwear demand.

What does this change for suppliers?

Merrell and Saucony provide the clearest positive demand signals. Saucony grew fastest at 19.4%, while Merrell added 6.5%. Wolverine and Sweaty Betty contracted. That makes brand mix more important than the group revenue headline.

International revenue grew 11.7% to $271.2 million. That identifies the international sales segment, not the countries where Wolverine sourced production.

The release disclosed no purchase orders, factory headcount, sourcing-country shifts, supplier commitments or manufacturing-capacity investments. Hufnagel’s investment language concerns balance-sheet capacity. It does not establish factory spending.

The practical sourcing decision is to prepare Merrell and Saucony capacity discussions while withholding country changes or labor commitments until order-level data appear. Compliance and finance teams should also reconcile the $35.3 million refund against the October 3 allocations and underlying tariff entries.

Keep the 31-cent EPS benefit outside recurring margin assumptions, and do not assume refund savings have passed into factory costs. The defensible supplier action is to plan around Merrell and Saucony demand, not fund a sourcing-country shift on the headline alone.