US’ Wolverine’s Q1 earnings rebound with record gross margin of 47.3%

American footwear manufacturer Wolverine Worldwide has reported a total revenue of $412.3 million in the first quarter (Q1) of 2025 ended March 29, a rise of 4.4 per cent year-over-year (YoY), or 5.6 per cent on a constant currency basis.

The ongoing total revenue increased by 5.5 per cent YoY, driven primarily by strong performances from Merrell and Saucony brands, which saw revenue growth of 13.2 per cent and 29.6 per cent YoY respectively.

Wolverine Worldwide has reported revenue of $412.3 million in Q1 2025, up 4.4 per cent YoY, driven by strong growth in Merrell and Saucony.
The gross margin rose to a record 47.3 per cent, and EPS improved to $0.13.
For Q2, revenue is expected between $440–$450 million, with EPS of $0.17–$0.22.
Due to tariff-related uncertainty, full-year guidance has been withdrawn.

The active group recorded a 12.7 per cent revenue increase, while the work group and other segments declined by 17 per cent and 28 per cent respectively.

International sales surged by 16.4 per cent. However, direct-to-consumer (DTC) sales declined by 9.4 per cent on a reported basis and by 6.9 per cent on an ongoing basis.

The gross margin of the group improved significantly to 47.3 per cent, up 140 basis points (bps), due to a favourable sales mix, reduced promotional activity, and supply chain cost efficiencies, Wolverine said in a press release.

The operating margin rose to 4.8 per cent from a negative 0.8 per cent, and diluted earnings per share (EPS) improved to $0.13 from a loss of $0.19. On an adjusted basis, operating margin increased to 6 per cent and adjusted EPS reached $0.18.

“Our results in the first quarter are further proof of the effectiveness of our strategy and the team’s execution. Merrell and Saucony fuelled our growth with double-digit revenue increases, and we more than tripled our earnings year-over-year, again delivering a record gross margin performance,” said Chris Hufnagel, president and chief executive officer (CEO) of Wolverine Worldwide.

“We have worked to reinvent Wolverine Worldwide for the future—focusing squarely on awesome product, amazing stories, and driving the business. While there’s uncertainty in the marketplace today, I am excited by the momentum we have generated, and I believe we are well positioned with great global brands, a variety of strategic and operational advantages, and most importantly, a talented and resilient team to navigate the near-term challenges and emerge an even better company,” added Hufnagel.

For the second quarter (Q2) of 2025, the company expects continued business momentum, due to its strong Q1 performance. The revenue is projected to range between $440 million and $450 million, reflecting YoY growth of approximately 3.7 to 6 per cent on an ongoing and constant currency basis.

The operating margin is anticipated to be around 6.7 per cent, down 10 bps from Q2 2024, while the adjusted operating margin is expected to improve by 90 bps to approximately 7.2 per cent. Diluted EPS are forecast between $0.17 and $0.22, with adjusted diluted EPS expected in the range of $0.19 to $0.24.

However, due to ongoing uncertainty surrounding tariffs and macro-economic conditions, the company has withdrawn its full-year 2025 guidance originally issued on February 19, 2025, and is not providing an updated full-year outlook at this time.

Fibre2Fashion News Desk (SG)