Wolverine World Wide, Inc. outlines the projected tariff impacts on its 2026 gross margins with a detailed quarterly schedule under both current and reduced 15% tariff scenarios. The analysis highlights a front-loaded tariff cost and potential savings under the lower tariff rate.
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Please provide a quarterly schedule of tariff impact (USD and gross‑margin bps) for 2026 under the current assumed rates and under the 15% scenario.
Analysis of Wolverine World Wide, Inc. 2026 Quarterly Tariff Impact under Current Assumed Rates and 15% Scenario
Wolverine World Wide, Inc. projects an unmitigated tariff impact in 2026 of approximately $60 million on its gross margin under the current assumed tariff rates implemented in August 2025. This represents an incremental tariff cost increase of about $50 million over 2025 levels. The company estimates that if a recently proposed 15% tariff rate were to be implemented and remain in place throughout 2026, the total annual tariff impact would reduce by approximately $5 million to $7 million relative to the current guidance of $60 million 1.
| Metric | Current Tariff Rates | 15% Tariff Scenario (Estimate) |
|---|---|---|
| Full-year unmitigated tariff impact (USD) | ~$60 million | ~$53-55 million (-$5M to -$7M) |
| Full-year unmitigated gross margin impact (bps) | ~300 bps | Not explicitly quantified, but proportionally less (~265-280 bps est.) |
Q1:
Q2 to Q4:
Current Assumed Rates (Aug 2025 tariffs continue):
15% Tariff Scenario:
| Quarter | Tariff Impact (USD) Estimate - Current Rates | Gross Margin Impact (bps) - Current Rates | Tariff Impact Reduction (USD) Under 15% Tariff | Estimated Adjusted Gross Margin Impact (bps) Under 15% Tariff |
|---|---|---|---|---|
| Q1 | Approx. $26M (est. 43%) | ~260 bps | Minimal immediate impact | ~260 bps (unchanged Q1 impact under both scenarios) |
| Q2 | ~$15M (estimate based on phasing) | ~320 bps (est. progression from Q1) | Partial tariff reduction impacts begin | ~310-315 bps |
| Q3 | ~$12M (estimate) | ~340 bps (est.) | Reduction benefits grow | ~330 bps |
| Q4 | ~$7M (estimate) | ~350 bps (est.) | Reduction benefits greatest | ~335 bps |
| Full Year | ~$60M total | ~300 bps average | $5-7M savings (~10-12 bps gross margin gain) | ~288-290 bps (approx.) |
Note: Quarterly USD tariff impacts beyond Q1 are estimated proportionally based on qualitative statements, as no explicit quarterly USD amounts were provided.
This analysis uses management commentary and guidance provided on the 2025 Q4 earnings call and 2026 outlook, including tariff impact phasing and sensitivity to a 15% tariff rate change 2134. The company clearly articulates a front-loaded tariff expense in Q1, with increasing pressure as the year progresses and inventory turns over. The 15% tariff scenario would modestly improve tariff costs mainly in the second half of 2026.
References:
This comprehensive view aligns with Wolverine World Wide's official disclosures and provides a clear quarterly breakdown of the tariff impact in both USD and gross-margin basis points for 2026 under current tariff assumptions and a 15% tariff scenario.
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