Saucony’s 31% surge powers Wolverine Worldwide’s 2025 turnaround

Wolverine Worldwide posted full-year 2025 revenue of $1.87 billion (€1.78 billion), up 7.1 percent on an ongoing basis, completing what its investor materials describe as a three-year financial recovery. The standout result came from Saucony, which grew annual sales 31.1 percent to $533 million (€507 million); management expects mid-teens growth again in 2026, suggesting the brand’s momentum will compound rather than mean-revert.

The results were published on Feb. 26, alongside fourth-quarter figures showing group revenue of $517.5 million (€492 million) (+4.6%) and adjusted diluted earnings per share (EPS) of $0.45 (€0.43), up 12.5 percent year-over-year. The full-year reported gross margin improved 300 basis points (bps) to 47.3 percent, driven by product cost savings and a favorable shift towards full-price sales.

Saucony: The turnaround’s defining asset

Saucony’s trajectory through 2025 defined the group’s year. Annual revenue reached $533 million (€507 million), with the fourth quarter generating $125.9 million (€120 million) – up 26.4 percent. According to Circana retail tracking data cited in the group’s investor presentation, Saucony ranks in the top 10 of the US running footwear market by sales – a position the brand has been building towards for several years.

Chris Hufnagel, President and Chief Executive Officer of Wolverine Worldwide, described the launch of the Endorphin Azura – featuring the brand’s PWRRUN PB foam compound and SpeedRoll technology – as “the biggest launch day ever,” making it the highest-grossing single product debut in Saucony’s history. He called the moment “a special moment” in the brand’s trajectory.

The commercial architecture behind that launch matters as much as the revenue number itself. Saucony’s direct-to-consumer (DTC) channel amplified the impact: in owned retail environments, launch-day demand translates directly to margin-accretive full-price transactions. The brand’s Pioneer Store in Covent Garden, London – cited in the investor presentation as a flagship DTC experience – exemplifies the international retail build-out that is underpinning international growth. The group also cited Saucony’s sponsorship of the Eiffel Tower 10K as part of a European storytelling strategy designed to embed the brand in running culture beyond its North American base.

Management guided Saucony to mid-teens revenue growth in fiscal 2026 – and low-to-mid-teens on a constant currency basis – which, applied to a $533 million (€507 million) base, would push the brand towards the $600 million (€571 million) threshold. That would place Saucony alongside peers in the upper tier of the global performance running segment, a market estimated at approximately $40 billion (€38 billion) globally, with an adjacent athletic lifestyle opportunity exceeding $150 billion (€143 billion) according to Circana and Statista data cited by the company. The Q1 2026 guidance is for the Active Group overall to grow at a low-double-digit rate year-over-year.

The three-year recovery in context

The 2025 result closes a three-year cycle that nearly broke the company. Ongoing revenue fell from $1.99 billion (€1.89 billion) in fiscal 2023 to $1.75 billion (€1.67 billion) in 2024 before recovering to $1.87 billion (€1.78 billion). The adjusted operating margin moved from 4.0 percent to 7.3 percent to 9.0 percent over the same period. Net debt dropped from $742 million in 2023 to $496 million in 2024 to $415 million at the end of fiscal 2025 – a $327 million reduction in two years.

Merrell’s: International growth masks US distribution reset

Merrell contributed $648.9 million (€617 million) in full-year sales (+8.4%), remaining the group’s largest single brand by revenue. Q4 reached $173.1 million (€165 million) (+5.9%). Management guided Merrell to mid-single-digit growth in fiscal 2026, both on a reported and constant currency basis.

International scaling remains the primary strategic lever, with EMEA – representing 32 percent of group revenue, against APAC at 10 percent – showing stronger demand momentum than the promotional US market. In the call, Hufnagel acknowledged that some newly opened distribution doors underperformed expectations, prompting a selective “right sizing” of accounts.

Work Group stabilises under new leadership but remains Wolverine’s drag

The Work Group – encompassing Wolverine, Cat, Harley-Davidson, Bates and HYTEST – posted full-year revenue of $422.2 million (€401.7 million) (–7.3%). Q4 fell 11.3 percent to $134 million (€127.5 million).

CFO Taryn Miller guided the segment to approximately flat performance in fiscal 2026, with Q1 expected to decline low-single-digits. Hufnagel pointed to early market share recovery in Q4, describing the moment as a “recalibration” of the US market. The Wolverine brand fell 9.0 percent to $175.7 million (€167.1 million) and has been guided flat for 2026. The group appointed Justin Cupps as President of the Work Group – a move that suggests management now considers the segment worthy of dedicated executive attention.

Sweaty Betty stumbles as Wolverine’s premium bet falters

Sweaty Betty, Wolverine’s premium women’s activewear brand, grew 8.8 percent in Q4 to $68.9 million (€65.6 million), but declined 3.1 percent for the full year to $192.8 million (€183.4 million). Management guided the brand to a low-single-digit decline in fiscal 2026 – a more cautious stance than the press release suggested. International expansion and premium women’s activewear differentiation remain medium-term priorities. Sweaty Betty ranks in the top five of UK women’s sportswear by market share, per GlobalData.

Cash up, margins down: Wolverine builds liquidity but misses profitability targets

Operating cash flow reached $140 million for fiscal 2025, funding debt reduction and a modest share buyback program. The group’s medium-term financial targets include organic revenue growth in the mid-to-high single-digit range, gross margin of 45–47 percent, operating margin in the mid-teens and operating cash flow above $150 million annually. The current 9.0 percent adjusted operating margin sits well below that threshold.

Wolverine guides flat: Saucony can’t outrun margin pressure and Work Group drag

The quarterly figures exceeded expectations. Yet the fiscal 2026 guidance signals stabilization rather than acceleration. Management expects revenue of $1.960–1.985 billion (€1.865–1.889 billion) – up approximately 5 percent – with an adjusted operating margin of around 9.1 percent and adjusted EPS of $1.35–$1.50 (€1.28–€1.43).

Tariffs represent a material headwind. Without mitigation, the impact would total approximately $60 million, reducing gross margin by roughly 50 bps. CFO Taryn Miller noted that a 10 percent tariff level is already built into guidance, with most exposure concentrated in the second half of the year. Management plans to offset the impact through price adjustments and sourcing shifts, though these measures will not create additional margin.

Saucony is expected to sustain mid-teens growth and Merrell to scale internationally, but the Work Group remains the residual risk, guided to approximately flat performance. With an operating margin around 9 percent, Wolverine sits well below its medium-term target in the mid-teens range. The operational turnaround is visible – but its sustainability remains unproven.