Wolverine Worldwide's strategic initiatives drive margin improvement in FY25

The US-based footwear group Wolverine Worldwide reported financial results for the fourth quarter and full fiscal year 2025, which ended January 3, 2026. The company exceeded its forecast across all key metrics for the final quarter, supported by global growth in its primary brands and continued improvements in the direct-to-consumer (D2C) channel.

Chris Hufnagel, the president and chief executive officer of Wolverine Worldwide, stated that the group is "finding our footing" in areas of prior underperformance and expressed confidence in the momentum carried into the new fiscal year.

Financial performance and margin expansion

A significant highlight for the fiscal year 2025 was the expansion of the gross margin to 47.3 percent, up from 44.3 percent in the prior year. This 300-basis point increase was primarily driven by cost management, shift towards full-price sales. These gains were achieved despite being partially offset by higher US tariffs.

In terms of capital allocation, the group remained active in its share repurchase program. During the fourth quarter, the company repurchased approximately 0.9 million shares for 15 million dollars at a weighted average price of 16.13 dollars per share. As of the end of the fiscal year, 135 million dollars remained under the current stock repurchase authorization.

Fiscal year 2026 outlook

Looking ahead to fiscal year 2026, which will return to a 52-week calendar, the company expects total revenue to be between 1.96 billion dollars and 1.99 billion dollars, representing growth of approximately 4.6 percent to 5.9 percent.

The operating margin is expected to reach 8.8 percent, up 80 basis points from 2025, while the adjusted operating margin is forecast at 9.1 percent.

Diluted earnings per share (EPS) are anticipated in the range of 1.31 dollars to 1.46 dollars, with adjusted diluted EPS expected between 1.35 dollars and 1.50 dollars and the gross margin for 2026 is forecast at approximately 46 percent, a 130-basis point decrease compared to the high mark set in 2025.