WOLVERINE WORLD WIDE INC /DE/ 10-Q

MD&A

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following is a discussion of the Company’s results of operations and liquidity and capital resources. This section should be read in conjunction with the Company’s consolidated condensed financial statements and related notes included elsewhere in this Quarterly Report. BUSINESS OVERVIEW The Company is a leading global footwear and apparel company driven by a vision to Make. Every Day. Better. The Company’s brands are sold in approximately 170 countries and territories at July 4, 2026, including through owned operations in the U.S., Canada, the United Kingdom and certain countries in continental Europe and Asia Pacific. In other regions (Latin America, portions of Europe and Asia Pacific, the Middle East and Africa), the Company relies on a network of third-party distributors, licensees and joint ventures. At July 4, 2026, the Company operated 123 retail stores in the U.S., United Kingdom, Ireland and Italy and 38 direct-to-consumer eCommerce sites. Known Trends Impacting Our Business On February 20, 2026, the U.S. Supreme Court ruled that U.S. tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) on goods imported into the U.S. were unauthorized. In March 2026, the U.S. Court of International Trade ordered U.S. Customs and Border Protection (“CBP”) to suspend collection of the invalidated tariffs and to establish a process to refund IEEPA tariffs previously collected. The total amount of IEEPA tariffs paid by the Company as of the date of the ruling was $35.9 million. The Company has submitted refund claims through the portal established by CBP for $34.0 million, excluding interest. Beginning on July 20, 2026, the Company has received cash of $6.9 million for a portion of the refund claims, with applicable interest. The Company elected to apply the gain contingency model in accordance with ASC 450-30, Gain Contingency, to account for potential refunds. As of July 4, 2026, the Company has not recognized any tariff refunds as the amount and timing of any recoveries was uncertain. The Company will continue to monitor changes to the import and export policies of the U.S. and other countries that could impact its financial position, results of operations and cash flows. The Company’s revenue from sales to customers in the Middle East repres