Wolverine World Wide's Q2 2025 Earnings Call: Unpacking Contradictions in Saucony's Growth Strategy and Tariff Impact

Saucony's growth sources, DTC revenue and strategy, Saucony's growth strategy and new door expansion, and tariff impact and timing are the key contradictions discussed in Wolverine World Wide's latest 2025Q2 earnings call.



Strong Revenue Growth Across the Portfolio:
- Wolverine Worldwide reported revenue of $474 million for Q2 2025, exceeding the high end of their outlook by $4 million.
- The over-delivery was driven by stronger-than-expected performance in both the Active and Work groups, highlighting underlying momentum and solid execution.

Saucony's Exceptional Performance:
- Saucony achieved 42% revenue growth in the second quarter, contributing significantly to Wolverine's overall performance.
- This growth was driven by broad-based gains across regions and channels, coupled with a 560 basis point increase in gross margin, reflecting a strategic reset and focus on performance and lifestyle markets.

Merrell's Momentum:
- Merrell delivered 11% growth in Q2, marking its fourth consecutive quarter of growth, with gross margin expansion of nearly 600 basis points.
- The brand's growth was supported by successful new product introductions, like the Moab Speed 2 and Agility Peak 5, and strategic expansion in key markets such as Asia Pacific.

Tariff Impact and Mitigation:
- Wolverine Worldwide estimated the 2025 profit impact from incremental tariffs to be approximately $20 million, adjusting for new tariff rates implemented in August.
- The company is executing strategic initiatives to offset the majority of the profit impact, leveraging its diversified supply chain and price adjustments to maintain financial flexibility.