Wolverine World Wide: Downgrade to Marketweight as we view early refinancing as less likely

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Wolverine World Wide: Downgrade to Marketweight as we view early refinancing as less likely

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Wolverine World Wide

Downgrade to Marketweight as we view

early refinancing as less likely

Rating Change - Credit

Less pressure to refi In advance 14 July 2026

We downgrade our rating on the Wolverine 4s to Marketweight from Overweight as High Yield Credit

strong results and a solid high yield market have made an early refinancing less likely in United States

our opinion. Previously, we thought Wolverine would be encouraged to refinance early to Retailing

avoid the risk that (1) brand momentum would stall or (2) the high yield market would

turn downward. However, Google trends indicate that interest in Saucony and Merrell are William M. Reuter

at all-time highs. In addition, we estimate net leverage declines to 1.7x at the end of ResearchBofAS Analyst

FY26 due to solid free cash flow. So, contrary to what might be expected, better results +1 646 855 6363

william.m.reuter@bofa.com

have potentially delayed a refinancing. The 4s trade at $94.125 so an early refinancing

would have resulted in a potential repayment at par prior to maturity. However, on a MichaelResearch DeRienzoAnalyst

yield-to-worst basis, the 4s trade at 6.1%, which is well inside the Single B Index (7.3% BofAS

+1 646 855 7973

YTW). We view the bonds as fairly valued and rate them at Marketweight. michael.derienzo@bofa.com

Active segment continues drive results

Wolverine World Wide (WWW)

1Q26 Adj EBITDA increased 22% to $46 million mainly due to strong sales growth from Key Data 1Q2025A 1Q2026A LTM

Merrell and Saucony, partially offset by higher operating expenses. Revenue (ex-forex) Operating (US$ mm)

increased 7% to $458 million.