Aug 13, 2026 earnings call — Brands drive stronger revenue and raised outlook
Company raised full-year revenue to $1.98 billion to $2 billion after Q2 revenue of $506 million.
Revenue $0.5B (est $0.5B) · EPS $0.40 (est $0.38) · Next-quarter revenue outlook $2.0B–$2.0B
Key quotes
"Merrell and Saucony, representing approximately 2/3 of our business, continued to lead the way with revenue up 10% and 9% in the quarter, respectively."
"Gross margin was pressured by an approximate 310 basis point unmitigated tariff headwind and a modest impact from elevated oil prices on freight costs, although mitigation actions offset most of the tariff impact."
"Our outlook for the remaining brands is unchanged, with Merrell expected to grow mid-single digits, Sweaty Betty expected to decline low single digits, and Wolverine expected to be approximately flat compared to 2025."
Analyst Q&A 11
Saucony competitiveness and back-half outlook
Q (Jonathan Komp · Baird): Analyst asked about competitiveness and discounting in the running market, and what gives confidence in Saucony's second-half acceleration (easier comps or other factors).
A: Management said the running category is competitive but Saucony has a strong product pipeline and global growth momentum. They noted 9% growth in Q2 on top of 40% last year and said comparisons are a bit easier, but visibility remains good.
"As it relates to the acceleration in the back half, I think you did point out, good 9% growth in the second quarter on top of 40% growth last year." — Christopher Hufnagel (CEO)
Merrell lifestyle share and Saucony doors
Q (Mitchel Kummetz · Seaport Research Partners): Asked what percent of Merrell is Lifestyle and the opportunities for Lifestyle next year; also asked if Saucony gained U.S. run share and about lifestyle door counts for the back half.
A: Management said Merrell's lifestyle is a smaller part of the business but the team is expanding lifestyle through products and marketing, and that distribution must open appropriately. They confirmed Saucony gained run specialty share in Q2 versus Q1 and expect second-half lifestyle doors to be approximately flat to the first half.
"The run specialty share we did gain in Q2, and that was an improvement over Q1, which we are encouraged by." — Christopher Hufnagel (CEO)
Merrell DTC pullback and share in Hike
Q (BNP): Asked why Merrell pulled back in DTC this quarter, whether Merrell full-price mix improved, and if Merrell continues to gain share in Hike.
A: Management said Merrell gained share in Hike with top styles and that they shifted Merrell marketing up the funnel to build awareness, which pressures DTC short term but should benefit the brand long term. They said brand health metrics are improving and they remain optimistic about Merrell globally.
"But that conscious shift in marketing spend obviously puts some pressure on Merrell in the short term in direct-to-consumer." — Christopher Hufnagel (CEO)
Saucony Europe and inventory sufficiency
Q (Peter McGoldrick · Stifel): Asked which international regions are driving Saucony's traction and whether current inventory can support the back-half revenue outlook.
A: Management pointed to Europe, especially London and other cities, as a standout for Saucony's progress. They said inventory is down year-over-year due to timing and productivity efforts but they are confident current levels plus planned receipts will fully support the increased '26 revenue outlook.
"To be specific to your question and important, we are confident at the current inventory levels that we're at, together with the planned receipts in the second half, they'll fully support the increased revenue outlook for '26." — Taryn Miller (CFO)
Saucony raise, Merrell guide, and margin drivers
Q (Mauricio Serna Vega · UBS): Asked where Saucony's guidance increase comes from (Lifestyle vs Performance), why Merrell guide wasn't increased despite strong Q2, and what structural/marketplace execution means for margin improvement.
A: Management said the Saucony raise reflects broad-based growth in both run and lifestyle globally and diversification across channels. They noted Merrell progress and record marketing investment but no change to the second-half outlook, and said margin gains come from healthier inventories, more full-price sales, product and supply chain cost efficiencies.
"Yes, again, really encouraged by the progress that we have seen in Merrell." — Christopher Hufnagel (CEO)
Inventory timing shift
Q (Samuel Poser · Williams Trading): Asked if some inventory receipts shifted timing (e.g., moved into July from June).
A: Management acknowledged a timing shift on inventory receipts was part of the explanation. They had trouble hearing part of the question but confirmed timing contributed to the inventory change.
"I think you said, was there a timing shift on inventory that was part of it?" — Taryn Miller (CFO)
Wolverine recovery and Sweaty Betty strategy
Q (Ashley Owens · KeyBanc): Asked what improvements drove Wolverine's return to growth and how the Work portfolio guide was set; also asked which Sweaty Betty strategies are working and about Saucony lifestyle productivity.
A: Management said Wolverine is focused on brand building, product innovation, channel segmentation and marketing activations; early results are encouraging but progress won't be perfectly linear. For Sweaty Betty, they described a strategy reset, product diversification, and plugging into international channels; and they said Saucony lifestyle door productivity is improving as channel inventory clears.
"At the same time, we acknowledge that there's more work to go do, and we don't anticipate the results to be perfectly linear moving out from here." — Christopher Hufnagel (CEO)
Saucony long-term growth levers
Q (Tom Nikic · Needham & Company): Asked where Saucony's long-term opportunities lie (shelf space, door count, category expansion, apparel).
A: Management said Saucony remains a relatively small challenger with big runway to grow across Performance run, Casual run, Lifestyle, street and fashion, and in more regions. They also see apparel and accessories as an opportunity and plan to test leveraging corporate expertise.
"So the ability to grow both Performance run, more Casual run, Lifestyle run, and then sort of grow street and fashion, I think that is an amazing, amazing opportunity ahead of us." — Christopher Hufnagel (CEO)
Product mix, innovation, and apparel role
Q (Dana Telsey · Telsey Advisory Group): Asked how core versus innovation should be weighted by brand, and whether apparel will play a bigger role based on Sweaty Betty learnings.
A: Management said innovation is critically important and products must solve consumer problems, be priced and placed right; this varies by category. They said they aim to make brands more premium and will test apparel opportunities, leveraging Sweaty Betty to help Saucony if it proves effective.
"First and foremost, you have to bring great products that are driven by consumer insights that solve consumers' problems that are priced right and placed right within the marketplace." — Christopher Hufnagel (CEO)
SG&A run-rate and DTC outlook
Q (Anna Andreeva · Piper Sandler): Asked if Q2 SG&A had timing shifts and whether very low single-digit SG&A growth is the right run rate; also asked about freight impact and whether DTC will bounce back.
A: Management said Q2 SG&A improvement came from stronger revenue and not timing, and the implied SG&A as a percent of revenue at the '26 midpoint is consistent with prior guidance. They said they continue to invest in brand and capabilities while staying disciplined, and DTC performance varies by brand with work to improve full-price mix and online storytelling.
"When we look at the balance of the year, at the midpoint of our '26 guidance, our implied SG&A as a percentage of revenue is largely consistent with what we said in May." — Taryn Miller (CFO)
International mix, inventory timing, Merrell lifestyle %
Q (Samuel Poser · Williams Trading): Asked if international was better than expected and if that helped gross margin, how much inventory timing shifted, and what percent of Merrell is Lifestyle and its outlook.
A: Management said geographic mix was as anticipated and not a driver of margins. They explained timing shifts included receipts this year versus last and June-to-July deltas but said inventory plus planned receipts support demand. They said Merrell Lifestyle is approximately less than a quarter of sales today and is a growth opportunity, while Performance showed particular strength in the quarter.
"Lifestyle is approximately less than a quarter of the total business today, but we certainly see that as an opportunity for us." — Christopher Hufnagel (CEO)