Wolverine World Wide, Inc. Q2 FY2025 earnings call

• Growth Achievements: Exceeded expectations on nearly every financial measure, double-digit revenue growth, 400+ basis points gross margin expansion, earnings more than doubled.
• Brand Performance: Saucony up 42%, Merrell up 11%, Sweaty Betty and Wolverine showed sequential improvement.
• Strategic Initiatives: New brand-building playbook effective, key city strategies for Saucony (London, Paris, Tokyo), modernizing products for Merrell, improving DTC for Sweaty Betty, product innovation across brands.
• Financial Strength: Net debt at end of Q2 was $568M, down $99M; gross margin 47.2%, adjusted operating margin 9.2%.

Saucony: Delivered 42% revenue growth, record Q2 revenue, 560 basis points of gross margin expansion. Grew in every region and channel. Merrell: Grew 11%, fourth consecutive quarter of growth, nearly 600 basis points gross margin expansion, gained share in hike category. Sweaty Betty: Saw sequential improvement, increased full price/mix and expanded gross margin by over 500 basis points. Wolverine: Revenue trend improved, gross margin expanded over 400 basis points, focused on strengthening Western and premium price collections.

• Third quarter 2025 revenue expected $450M - $460M, year-over-year +3.3% at midpoint (constant currency +2.6%).
• Active Group revenue expected mid-single-digit growth, Work Group expected low single-digit decline (adjusting for timing shift, Active Group high single digits, Work Group flat).
• Gross margin expected ~47%, adjusted operating margin ~8.3%, adjusted diluted EPS $0.28 - $0.32.

• Uncertainty in global marketplace due to shifting trade policies.
• Impact of tariffs, though mitigation efforts are in place.
• Macro environment effects on consumer spending and sentiment.

Q: Follow up on Saucony growth and range of outcomes for second half A: Chris Hufnagel discussed broad-based growth in Saucony, reinvigorated product pipeline, and focus on sell-through Q: Go-to-market strategy and DTC growth pathway A: Chris Hufnagel talked about DTC progress, sequential improvement, and focus on less promotional messaging Q: Saucony brand performance within newly expanded doors A: Chris Hufnagel mentioned focus on sell-through, broad-based growth in regions/channels, and brand search interest encouragement Q: Merrell international vs domestic performance A: Chris Hufnagel noted international (EMEA, APAC) outperformed U.S., with EMEA becoming leader in France, APAC accelerated growth Q: Tariff impact on Q3 and Q4 A: Taryn Miller stated more tariff impact expected in Q4 than Q3