Wolverine World Wide Reports 4.4% Revenue Growth to $412.3 Million in Q1 2025

Wolverine World Wide, Inc. reported a revenue of $412.3 million for the first quarter of 2025, marking a 4.4% increase from $394.9 million in the same period last year. The company's gross profit also saw an uptick, rising to $194.8 million from $181.4 million, resulting in a gross margin of 47.3%, up from 45.9% in the prior year. The company achieved net earnings of $12.2 million, a significant turnaround from a loss of $13.7 million in the first quarter of 2024. This translated to diluted earnings per share of $0.13, compared to a loss per share of $0.19 in the previous year.

The financial performance reflects notable changes compared to the previous fiscal period, particularly in operating profit, which surged to $19.7 million from a loss of $3.1 million. The improvement was attributed to a decrease in selling, general, and administrative expenses, which fell to $172.0 million from $176.8 million, and the absence of impairment charges that had impacted the prior year. Additionally, interest expenses decreased to $8.0 million from $12.0 million, contributing to the overall profitability.

Strategically, Wolverine World Wide has undergone significant organizational changes, including the divestiture of its Sperry® business and the transition of its Merrell® and Saucony® operations in China to a licensing model. These moves are part of the company's broader strategy to streamline operations and focus on core brands. The company also entered into global multi-year licensing agreements for Merrell® and Saucony® kids' footwear and apparel, which are expected to enhance its market presence.

Operationally, Wolverine World Wide reported a decrease in inventory levels, which fell by 23.6% to $270.7 million compared to the previous year. The company operated 120 retail stores and 39 direct-to-consumer eCommerce sites as of March 29, 2025, with a focus on expanding its global footprint across approximately 170 countries. The Active Group segment, which includes brands like Merrell® and Saucony®, saw a revenue increase of 12.7%, while the Work Group segment experienced a decline of 17.0%. The company continues to monitor market conditions and consumer preferences closely, which are critical for future growth.

Looking ahead, Wolverine World Wide anticipates that cash flow from operating activities will be sufficient to meet its working capital needs. The company plans to utilize excess cash flow for organic growth initiatives, debt reduction, and dividend payments. However, it remains cautious about potential risks, including changes in trade policies and market conditions that could impact its operations and financial performance. The company is committed to maintaining compliance with its financial covenants and managing its debt effectively as it navigates the evolving market landscape.