Saucony sprinted, Merrell climbed – and Wolverine Worldwide followed suit: thanks to strong demand for products from its lead brands, the group significantly increased its sales and profits in the third quarter of 2025.
The running shoe brand, the outdoor specialist and the premium activewear brand Sweaty Betty were among the fastest-growing brands of the quarter – and contributed significantly to the Active Group’s double-digit growth. According to analysts, they performed better than expected. Management has confirmed its annual forecast in the earnings call.
Double-digit growth in the Active Group
In Q3 FY25, adjusted consolidated sales climbed 6.9 percent year-on-year to $470.3 million. The growth driver was once again the Active Group, which contributed around 75 percent to total sales and grew at double-digit rates. Earnings also rose: the adjusted operating margin improved by 150 basis points to 9.1 percent, while adjusted EPS rose by 28.6 percent to $0.36. The gross margin reached 47.5 percent – an increase of 240 basis points. According to management, this was due in part to lower product costs, a higher full-price ratio and efficiency gains in the supply chain. In addition, inventory declined slightly year-over-year to $293 million.
Growth segments: running, outdoor, activewear
By far the most important business segment for Wolverine Worldwide is the Active Group. It is positioned in the high-growth segments of running, outdoor and activewear. The group includes the company’s most successful brands: Saucony, Merrell, Sweaty Betty and Chaco. Together, they generated sales of $352.8 million in Q3 FY25, an increase of 10.7 percent over the previous year’s.
Brand-building playbook: Performance meets lifestyle
The Active Group benefited in particular from its focus on the intersection of performance and lifestyle, as CEO Chris Hufnagel emphasized in the earnings call. This approach is reflected in the brands’ products and campaigns. Saucony, Merrell and Sweaty Betty are at the heart of Wolverine’s “Brand-Building Playbook,” which aims to achieve further growth through targeted product development, international expansion and strong DTC sales channels. “Our Brand-Building Model is focused on product, storytelling, and driving the business to deliver profitable growth in line with our value creation strategy,” reads the investor presentation.
Well positioned: Focus on Wolverine’s leading brands
Saucony has established itself as an innovation leader in the running segment and combines technological advances – such as the Endorphin Elite 2 – with a growing presence in lifestyle retail. Merrell is focusing on modernizing the trail and urban hiking segment and on sportier, lighter models that combine outdoor functionality with everyday comfort. Sweaty Betty is benefiting from the trend toward premium activewear and strengthening its market position with high-quality women’s clothing and global brand collaborations. Chaco, known for its performance sandals, is making a comeback in the adventure and travel segment.
Reasons unclear: Headwinds for Work Group
While the Active Group posted double-digit growth, the Work Group fell short of expectations in the third quarter, with sales falling by 2.9 percent to $105.9 million, down from $109.1 million in the same quarter of last year. Adjusted for currency effects, this represents a decline of 3.0 percent.
The Work Group’s brands include Wolverine, Bates, HyTest and Harley-Davidson footwear. Management did not specify the reasons for the decline, but analysts attribute it to the absence of one-time discount campaigns in the previous year and timing shifts in sales.
Guidance confirmed – market reacts positively
For full-year 2025, Wolverine Worldwide continues to expect adjusted revenue of $1.855 to $1.870 billion, an increase of 6.4 percent over the previous year’s. Adjusted EPS is expected to reach $1.29 to $1.34, which would represent an increase of 50 percent. The gross margin is expected to be 47.1 percent, with an operating margin of 8.9 percent.
Following the presentation of the Q3 results, the portal investing.com reported that Stifel had confirmed its “buy” rating for Wolverine Worldwide. The investment bank responded to the solid sales performance in the Active segment. Analysts also continue to see untapped potential, particularly in terms of margins and brand value. The focus is now on the important holiday season, traditionally the strongest quarter in sales, in both the US and Europe.
