Merrell returned to growth and Saucony had better-than-expected results in the third quarter as Wolverine Worldwide continued its turnaround efforts.

Total revenue was $440.2 million, a 16% decrease year-over-year, but higher than the $420 million guidance for the quarter.

Among Wolverine’s brands:

• Merrell revenue rose 1.4% to $159.2 million.
• Saucony revenue totaled $104.8 million, a 10% decline year-over-year.
• Wolverine revenue fell 12.3% to $49.4 million.
• Sweaty Betty revenue increased 3% to $46.3 million.

“We have a plan to inflect to growth as a company in the final quarter of the year,” said President and CEO Chris Hufnagel on the company’s earnings call on Thursday morning.

The company is bracing for a choppy macroeconomic environment in 2025, and the consumer outlook is murky, he said. In the meantime, Wolverine’s teams are focused on managing the variables they can control, bringing the best products to consumers at the right price.

Net earnings were $26.2 million in the quarter, down 49% from $51.4 million in the same quarter a year ago.

Wolverine’s active group segment, which includes Merrell, Saucony, Sweaty Betty, and Chaco reported a 3% revenue decline to $318.7 million in the quarter. Its work group portfolio, which includes Wolverine, Cat, and Bates, reported an 11.3% revenue decline to $109.1 million.

The pressure is on new hire Susie Kuhn, who is now leading the active group and reports directly to Hufnagel, to accelerate growth at the brands. She joined Wolverine from Foot Locker and also previously worked at Nike.

“I would say, if I’m critical of us, we haven’t always brought outside expertise and experience into the business as well as we could have, and that was something that I’ve worked hard on since I took this chair,” Hufnagel said. “And I think Susie checks a lot of boxes for us.”

Merrell Gains Market Share

Merrell’s had market share gains in six of the seven past quarters, Hufnagel said, which he attributed to products such as the Moab Speed 2 – a lighter, more athletic version of the Moab, which is the number one hiking boot in the world.

“The brand continues to sell-through well at key outdoor accounts, and encouragingly, it’s also performing well at certain lifestyle retailers,” Hufnagel said. The Agility Peak 5 is having similar success in both performance and lifestyle channels, he said.

Merrell has worked with key accounts to reset its assortment and is testing new products outside of the U.S.

The brand’s revenue in EMEA rose in the mid-teens, and in Asia Pacific, it increased mid-single digits in the quarter, which Hufnagel said was due to successful brand activations in Tokyo.

In January 2025, Merrell will launch the all new SpeedArc Surge Boa, which Time magazine named as one of the best inventions of 2024.

“The result is a remarkably unique and comfortable ride with exceptional energy return that outperforms the industry in extensive lab testing, packaged in a visually disruptive modern silhouette,” Hufnagel said.

Merrell’s revenue is projected to grow by the low single digits in the fourth quarter.

Saucony Targets Lifestyle and Performance for Growth

The Saucony brand strategy is continuing its evolution, now with a sharper focus on everyday runners in addition to innovation for elite, high-performance athletes.

The brand partnered with some key accounts in Japan to prove its power, delivering strong results in run specialty, sporting goods, outdoor specialty, and other distribution channels. In the U.S. run specialty channel, the brand drove strong growth and earned market share in the quarter.

Saucony will also look to benefit from demand for retro high-tech designs by digging into its archives.

It is also expanding its distribution, expecting to increase its account base by 900 doors in the U.S. by spring 2025.

In 2025, look for a fresh offering of the Pro Grid Omni on the lifestyle side, and new Guide and Ride models on the performance side. In the spring, Saucony will launch the Endorphin Elite 2.

“So I think from a product side, that brand is firing right now on all cylinders, and at the same time, we’ve really taken a hard approach at how we build awareness and affinity in the marketplace,” Hufnagel said.

London has been a key city in the brand’s marketing strategy, where the company is seeing all-time records for interest in the brand.

Revenue at Saucony is projected to decline in the low single digits in the fourth quarter.

Preparing for Tariffs and Full-Year 2024 Outlook

Wolverine has diversified its supply chain outside of China to Bangladesh, Vietnam, and Indonesia. But Hufnagel said he wasn’t overly concerned about potential tariffs the incoming Trump administration said will be implemented.

“I will tell you this: Wolverine’s a 141-year-old company,” Hufnagel said. “We’ve seen 15 Republican administrations, 10 Democratic administrations. We’ve been through a civil war, two world wars, a cold war, and a couple global pandemics. And I think our job really is to build a durable and resilient business model that can weather those changes.”

Wolverine adjusted its revenue outlook to be approximately $1.730 billion to $1.745 billion for the fiscal year. That’s up from the previous outlook of $1.71 billion to $1.73 billion.

Inventory will decline by approximately $85 million compared to the previous outlook of a decline of at least $75 million. Net debt will be $545 million compared to the previous projection of $565 million.

“While pleased with the continued progress and early proof points to our strategies, we remain intently focused on driving the business forward to realize the full potential of our brands and delivering better returns to our shareholders,” Hufnagel said.

Kate Robertson can be reached at [email protected].