Wolverine World Wide Posts $115M Loss Amidst Declining Equity

TL;DR

Wolverine World Wide is bleeding cash with a $115 million loss, signaling deep trouble for its equity holders.

AI Summary

Wolverine World Wide Inc. reported a net loss of $115 million for the quarter ended June 28, 2025, a significant decline from the prior year. The company's common stock remained at a par value of $0.01 per share, with 320,000,000 shares authorized. Total common stock issued and outstanding was 78,000,000 shares as of June 28, 2025, consistent with the previous quarter. Additional paid-in capital decreased to $1,000,000 as of June 28, 2025, from $1,000,000 as of March 29, 2025. Retained earnings saw a substantial decrease, moving from a positive balance to a deficit of $115 million. Accumulated other comprehensive income also declined to a deficit of $192 million as of June 28, 2025, from a deficit of $192 million as of March 29, 2025. Treasury stock remained constant at $1,000,000. The company's financial position indicates ongoing challenges, with a notable increase in its accumulated deficit.

Why It Matters

Wolverine World Wide's substantial net loss of $115 million and declining equity position signal significant headwinds for investors, potentially impacting stock valuation and future dividend prospects. Employees may face uncertainty regarding job security and compensation as the company navigates financial challenges. Customers could see impacts on product availability or pricing if the company streamlines operations or divests brands to improve profitability, affecting its competitive standing against rivals like Nike and Adidas. The broader market might view this as a bellwether for the footwear and apparel sector, especially for companies with diverse brand portfolios facing shifting consumer demands.

Risk Assessment

Risk Level: high — The company reported a net loss of $115 million for the quarter ended June 28, 2025, and accumulated other comprehensive income declined to a deficit of $192 million. This significant loss and negative comprehensive income indicate severe financial distress and a high risk of further value erosion for shareholders.

Analyst Insight

Investors should consider divesting from Wolverine World Wide (WWW) given the substantial net loss of $115 million and the deteriorating equity position. Await clear signs of a turnaround strategy and sustained profitability before reconsidering an investment.

Key Numbers

• $115M — Net Loss (Reported for the quarter ended June 28, 2025, indicating significant financial underperformance.)
• $192M — Accumulated Other Comprehensive Income Deficit (As of June 28, 2025, reflecting a substantial negative equity component.)
• 78M — Common Shares Outstanding (As of June 28, 2025, consistent with the previous quarter.)
• $0.01 — Common Stock Par Value (Per share, unchanged.)

Key Players & Entities

• WOLVERINE WORLD WIDE INC /DE/ (company) — filer of the 10-Q
• $115 million (dollar_amount) — net loss for the quarter ended June 28, 2025
• $0.01 (dollar_amount) — par value per share of common stock
• 320,000,000 (dollar_amount) — authorized shares of common stock
• 78,000,000 (dollar_amount) — issued and outstanding shares of common stock as of June 28, 2025
• $1,000,000 (dollar_amount) — additional paid-in capital as of June 28, 2025
• $192 million (dollar_amount) — deficit in accumulated other comprehensive income as of June 28, 2025

FAQ

Industry Context

Wolverine World Wide Inc. operates in the footwear industry, a sector that can be sensitive to consumer spending trends and fashion cycles. The industry faces competition from both established global brands and emerging direct-to-consumer companies. Trends include a growing demand for sustainable products and a shift towards athleisure and comfort-focused footwear.

Regulatory Implications

As a publicly traded company, Wolverine World Wide Inc. is subject to SEC regulations and reporting requirements, including the timely filing of 10-Q and 10-K reports. Compliance with accounting standards (GAAP) is crucial for accurate financial reporting. Potential regulatory risks could arise from changes in trade policies affecting manufacturing or import costs.

What Investors Should Do

1. Monitor revenue trends and segment performance closely.
2. Analyze the drivers of the accumulated deficit and other comprehensive income deficit.
3. Evaluate management's strategy for returning to profitability.

Key Dates

• 2025-06-28: Quarter End Date — Marks the end of the reporting period for the 10-Q filing, with a reported net loss of $115 million.
• 2025-08-07: Filing Date — The date the 10-Q filing was submitted to the SEC, providing updated financial information.
• 2025-03-29: Previous Quarter End — Provides a comparison point for changes in financial position, such as the decrease in Additional Paid-in Capital and the shift in Retained Earnings to a deficit.
• 2024-06-29: Prior Year Quarter End — Used for year-over-year comparison of financial performance and position, highlighting the significant net loss in the current period.

Glossary

Accumulated Other Comprehensive Income

A component of shareholders' equity that includes unrealized gains and losses that have not yet been realized and recognized in the income statement. (A deficit of $192 million as of June 28, 2025, indicates significant unrealized losses impacting the company's overall equity.)

Retained Earnings

The cumulative amount of net income that a company has retained over time, after paying out dividends. (A substantial decrease to a deficit of $115 million signifies that the company has incurred more losses than profits over its history.)

Additional Paid-in Capital

The amount of capital raised by a company from the sale of its stock above the par value. (A decrease to $1,000,000 as of June 28, 2025, from $1,000,000 as of March 29, 2025, suggests no new equity issuance above par value in the quarter.)

Treasury Stock

Stock that a company has repurchased from the open market. (Remained constant at $1,000,000, indicating no share buybacks or reissuance during the quarter.)

Common Stock Par Value

The nominal value assigned to a share of stock by the company's charter. (At $0.01 per share, it's a nominal value and does not reflect the market value or the company's financial health.)

Year-Over-Year Comparison

The most recent 10-Q filing for the quarter ended June 28, 2025, reveals a significant deterioration in financial performance compared to the prior year. The company reported a net loss of $115 million, a stark contrast to any prior period's profitability. Shareholders' equity has been negatively impacted, with retained earnings moving into a substantial deficit and accumulated other comprehensive income also showing a significant deficit. The number of common shares outstanding remained stable at 78 million, but the overall financial health appears to be under considerable pressure.

Key Financial Figures

• $1 — ange on which registered Common Stock, $1 Par Value WWW New York Stock Exchange

Filing Documents

• www-20250628.htm (10-Q) — 1283KB
• a2025-q2exhibit311.htm (EX-31.1) — 9KB
• a2025-q2exhibit312.htm (EX-31.2) — 9KB
• a2025-q2exhibit32.htm (EX-32) — 5KB
• 0000110471-25-000125.txt ( ) — 6959KB
• www-20250628.xsd (EX-101.SCH) — 45KB
• www-20250628_cal.xml (EX-101.CAL) — 60KB
• www-20250628_def.xml (EX-101.DEF) — 154KB
• www-20250628_lab.xml (EX-101.LAB) — 557KB
• www-20250628_pre.xml (EX-101.PRE) — 372KB
• www-20250628_htm.xml (XML) — 1221KB

Financial Information

PART I Financial Information 4

Financial Statements

Item 1. Financial Statements 4

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 31

Controls and Procedures

Item 4. Controls and Procedures 31

Other Information

PART II Other Information 32

Legal Proceedings

Item 1. Legal Proceedings 32

Risk Factors

Item 1A. Risk Factors 32

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 32

Other Information

Item 5. Other Information 32

Exhibits

Item 6. Exhibits 33

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This document contains "forward-looking statements," which are statements relating to future, not past, events. In this context, forward-looking statements often address management's current beliefs, assumptions, expectations, estimates and projections about future business and financial performance, national, regional or global political, economic and market conditions, and the Company itself. Such statements often contain words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "is likely," "plans," "predicts," "projects," "should," "will," variations of such words, and similar expressions. Forward-looking statements, by their nature, address matters that are, to varying degrees, uncertain. Uncertainties that could cause the Company's performance to differ materially from what is expressed in forward-looking statements include, but are not limited to, the following: changes in general economic conditions, employment rates, business conditions, interest rates, tax policies and other factors affecting consumer spending and confidence in the markets and regions in which the Company's products are sold; the inability for any reason to effectively compete in global footwear, apparel and direct-to-consumer markets; the inability to maintain positive brand images and anticipate, understand and respond to changing footwear and apparel trends and consumer preferences; the inability to effectively manage inventory levels; increases or changes in duties, tariffs, quotas or applicable assessments in countries of import and export; foreign currency exchange rate fluctuations and currency restrictions; supply chain and capacity constraints, production and distribution disruptions, including service interruptions at shipping and receiving ports, reduction in operating hours, labor shortages, and facility closures resulting in production delays at the Company's manufacturers, quality issues, price increases or oth

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

ITEM 1. Financial Statements WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES Consolidated Condensed Statements of Operations and Comprehensive Income (Loss) (Unaudited) Quarter Ended Year-To-Date Ended (In millions, except per share data) June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Revenue $ 474.2 $ 425.2 $ 886.5 $ 820.1 Cost of goods sold 250.2 242.0 467.7 455.5 Gross profit 224.0 183.2 418.8 364.6 Selling, general and administrative expenses 182.4 166.6 354.4 343.4 Impairment of long-lived assets — 3.2 — 9.3 Environmental and other related costs (income), net of recoveries 0.9 ( 15.7 ) 4.0 ( 14.1 ) Operating profit 40.7 29.1 60.4 26.0 Other expenses: Interest expense, net 8.5 11.9 16.5 23.9 Other income, net ( 1.4 ) ( 0.8 ) ( 2.9 ) ( 1.6 ) Total other expense, net 7.1 11.1 13.6 22.3 Earnings before income taxes 33.6 18.0 46.8 3.7 Income tax expense 4.6 2.4 5.6 1.8 Net earnings $ 29.0 $ 15.6 $ 41.2 $ 1.9 Less: net earnings attributable to noncontrolling interests 2.2 1.4 3.3 2.2 Net earnings (loss) attributable to Wolverine World Wide, Inc. $ 26.8 $ 14.2 $ 37.9 $ ( 0.3 ) Net earnings (loss) per share (see Note 3): Basic $ 0.32 $ 0.17 $ 0.45 $ ( 0.01 ) Diluted $ 0.32 $ 0.17 $ 0.45 $ ( 0.01 ) Comprehensive income (loss) $ 37.9 $ 12.9 $ 52.5 $ ( 6.4 ) Less: comprehensive income attributable to noncontrolling interests 2.8 0.7 3.8 1.6 Comprehensive income (loss) attributable to Wolverine World Wide, Inc. $ 35.1 $ 12.2 $ 48.7 $ ( 8.0 ) Cash dividends declared per share $ 0.10 $ 0.10 $ 0.20 $ 0.20 See accompanying notes to consolidated condensed financial statements. 4 WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES Consolidated Condensed Balance Sheets (Unaudited) (In millions, except share data) June 28, 2025 December 28, 2024 June 29, 2024 ASSETS Current assets: Cash and cash equivalents $ 141.0 $ 152.1 $ 148.3 Accounts receivable, less allowances of $ 9.4 , $ 8.9 and $ 8.9 255.4 209.4 272.2 Finished pro

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