Wolverine Worldwide’s international revenue rose 10.9% year over year to $277.2 million in the second quarter of 2026, as growth across brands including Merrell and Saucony helped the footwear company raise its full-year outlook, while first-half operating cash flow turned positive.
International sales increased from $250 million a year earlier and grew 9.6% on a constant-currency basis. The international business significantly outpaced Wolverine Worldwide’s total Q2 revenue growth of 6.8%, with companywide revenue reaching $506.4 million, up from $474.2 million in the prior-year period.
The Active Group was the largest contributor to growth, with revenue increasing 9.3% to $388.4 million. Merrell revenue increased 11.1% to $175.5 million and Saucony increased 9.9% to $158.6 million. Wolverine brand revenue increased 6.6% to $39.6 million, while Sweaty Betty declined 2.4% to $40.3 million.
The Work Group was softer, with revenue declining 1.6% to $105.8 million. Direct-to-consumer revenue was essentially flat at $111.7 million compared with $111.6 million a year earlier.
Wolverine Worldwide also continued improving profitability despite tariff pressure. Operating margin expanded 70 basis points to 9.3%, while adjusted operating margin increased 80 basis points to 10%. Diluted EPS increased 15.6% to $0.37, and adjusted diluted EPS increased 14.3% to $0.40.
Gross margin declined 70 basis points to 46.5% from 47.2%, primarily because of higher U.S. tariffs. The company said price increases and other tariff mitigation initiatives partially offset that pressure.
The balance sheet also continued to improve. Cash and cash equivalents increased 12.4% year-over-year to $159 million, while inventory declined 17% to $269 million. Net debt decreased 22%, or $125 million, to $443 million.
Wolverine Worldwide also moved into positive operating cash flow during the first half. Net cash provided by operating activities reached $3.4 million for the year-to-date period compared with cash usage of $39.2 million during the comparable period a year earlier. The improvement came as the company continued reducing inventory and strengthening its working-capital position.
Strong operating performance and balance-sheet progress prompted Wolverine Worldwide to increase its 2026 outlook. Full-year revenue is now expected to reach approximately $1.98 billion to $2 billion, representing growth of 5.6% to 6.7%, compared with the previous outlook of $1.96 billion to $1.985 billion.
The company also expects operating margin of approximately 9.5%, up 150 basis points from 2025, and adjusted operating margin of approximately 9.9%, up 90 basis points. Previous guidance called for operating margin of approximately 9.2% and adjusted operating margin of approximately 9.5%.
Diluted EPS is now expected to range from $1.48 to $1.58, compared with prior guidance of $1.39 to $1.54. Adjusted diluted EPS guidance increased to $1.55 to $1.65 from the previous range of $1.43 to $1.58.
The outlook excludes any benefit from potential tariff refunds and incorporates the impact of foreign currency movements. Wolverine Worldwide’s fiscal 2026 also contains 52 weeks compared with 53 weeks in fiscal 2025, affecting year-over-year comparisons.
KEY QUOTES:
“We’re executing our strategies, elevating our brands, and driving consistent, profitable growth. Based on our strong start to the year and the progress we’re seeing across the business, we’re raising our outlook for 2026.”
Chris Hufnagel, President and CEO of Wolverine Worldwide
