Overview

• U.S. footwear and apparel designer's Q1 revenue grew 11% yr/yr, beating analyst expectations

• Adjusted EPS for Q1 beat analyst expectations

• Gross margin held steady at 47.6%, supported by full-price sales and price increases

Outlook

• Wolverine sees 2026 revenue at $1.96 bln to $1.985 bln, unchanged from prior outlook

• Company raises 2026 gross margin outlook to 46.4% from 46.0% previously

• Wolverine lifts 2026 operating margin view to 9.2% and adj operating margin to 9.5%

• Company raises 2026 diluted EPS outlook to $1.39-$1.54, adj EPS to $1.43-$1.58

Result Drivers

• BRAND PERFORMANCE - Merrell and Saucony led growth, with both brands posting double-digit revenue increases

• INTERNATIONAL SALES - International revenue rose 20.1% yr/yr, outpacing overall company growth

• PRICING AND MIX - Gross margin held steady at 47.6% as more full-price sales and recent price increases offset higher U.S. tariffs

Company press release: ID:nBwbPg8HZa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the footwear peer group is "buy"

• Wall Street's median 12-month price target for Wolverine World Wide Inc is $23.50, about 51.3% above its May 13 closing price of $15.53

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 13 three months ago

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