Wolverine World Wide, Inc. Announces Record Fourth Quarter Revenue and Earnings With EPS Up 16.7%



    ROCKFORD, Mich., Jan. 31 /CNW/ -- Wolverine World Wide, Inc. (NYSE:   WWW)
today reported record revenue and earnings per share for its fourth quarter
and 2006 fiscal year, marking its sixth consecutive year of record results.
    "The Company had an exceptional year in 2006 as illustrated by our strong
financial performance," stated Timothy J. O'Donovan, the Company's Chairman
and CEO.  The Company achieved record revenue totaling $1.142 billion for
2006, a 7.6 percent increase over 2005 revenue of $1.061 billion.  For the
fourth quarter of 2006, the Company reported revenue of $341.7 million, a 6.5
percent increase over fourth quarter 2005 revenue of $321.0 million.
    Fourth quarter 2006 earnings per share increased to $0.42, a 16.7 percent
increase over fourth quarter 2005 earnings per share of $0.36.  Fiscal 2006
earnings per share grew to a record $1.47, which reflected a 15.7 percent
increase over the $1.27 reported in 2005 and exceeded the Company's earnings
per share estimate.  Included in the fourth quarter and full-year 2006 results
is a one-time $0.02 per share income tax benefit, resulting from the closure
of prior year tax audits.
    According to Blake W. Krueger, President and COO of the Company, "Our
business model continues to meet our long-term objectives of generating annual
mid to upper-single digit revenue increases while driving earnings per share
increases at a double-digit pace.   For 2006, all of our four major branded
operating groups contributed to the profit increase and three of our four
branded groups contributed to the revenue increase.  The Outdoor Group set the
pace, led by Merrell Footwear, which posted strong double-digit revenue and
earnings improvements.  Our strategy of leveraging a highly recognized global
portfolio of brands delivered consistent growth and a record financial
performance for a sixth straight year, which resulted in a double-digit
earnings per share increase for the fourth consecutive year."
    "In the fourth quarter, gross margin increased 140 basis points in
comparison to the same quarter of last year, resulting in a 50 basis point
improvement for the full year," reported the Company's CFO, Stephen L. Gulis
Jr.  "The strong gross margin expansion was offset by increased selling and
administrative expenses related to investments in Merrell Apparel and
Patagonia Footwear.  Operating margin for the full year 2006 exceeded our plan
and improved to 10.8 percent."
    "Accounts receivable decreased 2.9 percent on a 6.5 percent revenue gain
in the fourth quarter.  Inventory increased 14.2 percent, with the vast
majority of the increase occurring in the Outdoor Group to support the growth
of the global Merrell Footwear business and the initial launch of Patagonia
Footwear.  Our strong operating results generated $108 million of cash from
operating activities and our year-end return on assets and return on equity
reached record levels."
    Mr. O'Donovan continued, "Our investments in Patagonia Footwear and
Merrell Apparel are on plan as we began delivering Patagonia Footwear for the
spring season and Merrell Apparel will launch in the third quarter of 2007.
Our 2006 year-end backlog is up more than 10 percent over the prior year-end
level, and we are confirming our 2007 estimates with a revenue range of $1.200
to $1.230 billion and an earnings per share range of $1.56 to $1.62."
    "We are delivering on our vision 'To Excite Consumers Around The World
With Innovative Footwear And Apparel That Bring Style To Purpose.'  As our
brands continue to be enthusiastically embraced by consumers around the globe,
we remain steadfast in our dedication to offering a unique point-of-view to
the marketplace with fresh thinking and innovative new products."
    The Company will host a conference call at 8:30 a.m. EST today to discuss
these results and current business trends.  To listen to the call at the
Company's website, go to www.wolverineworldwide.com, click on "For Our
Investors" in the navigation bar, click on "Conference Call" from the top
navigation bar of the "For Our Investors" page, and then click on "Webcast."
To listen to the webcast, your computer must have Windows Media Player, which
can be downloaded for free at www.wolverineworldwide.com.  In addition, the
conference call can be heard at www.streetevents.com. A replay of the call
will be available at the Company's website through February 13, 2007.
    With a commitment to service and product excellence, Wolverine World
Wide, Inc. is one of the world's leading marketers of branded casual, active
lifestyle, work, outdoor sport and uniform footwear and apparel.  The
Company's portfolio of highly recognized brands includes: Bates(R), Hush
Puppies(R), HYTEST(R), Merrell(R), Sebago(R) and Wolverine(R).  The Company
also is the exclusive footwear licensee of popular brands including CAT(R),
Harley-Davidson(R) and Patagonia(R). The Company's products are carried by
leading retailers in the U.S. and globally in over 170 countries. For
additional information, please visit our website, www.wolverineworldwide.com.
    This press release contains forward-looking statements, including those
relating to 2007 sales and earnings, new business initiatives, corporate
growth and expansion into apparel. In addition, words such as "estimates,"
"expects," "intends," "should," "will," variations of such words and similar
expressions are intended to identify forward-looking statements. These
statements are not guarantees of future performance and involve certain risks,
uncertainties and assumptions ("Risk Factors") that are difficult to predict
with regard to timing, extent, likelihood and degree of occurrence. Therefore,
actual results and outcomes may materially differ from what may be expressed
or forecasted in such forward-looking statements.  Risk Factors include, among
others:  changes in duty structures in countries of import and export
including anti-dumping measures in Europe with respect to leather footwear
imported from China and Vietnam and safety footwear imported from China and
India; changes in consumer preferences or spending patterns; cancellation of
orders for future delivery; changes in planned customer demand, re-orders or
at-once orders; the availability and pricing of foreign footwear factory
capacity; reliance on foreign sourcing; the availability of power, labor and
resources in key foreign sourcing countries, including China; the impact of
competition and pricing; the impact of changes in the value of foreign
currencies, including the Chinese Yuan, and the relative value to the U.S.
Dollar; integration and operation of newly acquired and licensed businesses;
the development of new initiatives in apparel; retail buying patterns;
consolidation in the retail sector; changes in economic and market conditions;
acts and effects of war and terrorism; the conclusion of the year-end audit by
the independent auditors and any potential adjustments; and additional factors
discussed in the Company's reports filed with the Securities and Exchange
Commission and exhibits thereto. Other Risk Factors exist, and new Risk
Factors emerge from time to time that may cause actual results to differ
materially from those contained in any forward-looking statements. Given these
risks and uncertainties, investors should not place undue reliance on forward-
looking statements as a prediction of actual results.  Furthermore, the
Company undertakes no obligation to update, amend or clarify forward-looking
statements.



    WOLVERINE WORLD WIDE, INC.

    
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)
    ($000's, except per share data)

    16 Weeks Ended          52 Weeks Ended
    December 30 December 31, December 30, December 31,
    2006        2005         2006        2005

    Revenue                     $341,739  $321,002  $1,141,887  $1,060,999
    Cost of products sold        214,022   205,324     700,349     655,800
    Gross margin              127,717   115,678     441,538     405,199

    Selling and administrative
    expenses                     95,180    83,404     318,243     291,891
    Operating margin           32,537    32,274     123,295     113,308

    Interest (income) expense, net  (217)      619        (203)      1,911
    Other expense (income)           287       322       1,206         150
    70       941       1,003       2,061
    Earnings before income
    taxes                     32,467    31,333     122,292     111,247

    Income taxes                   8,823    10,889      38,645      36,780

    Net earnings                 $23,644   $20,444     $83,647     $74,467

    Diluted earnings per share      $.42      $.36       $1.47       $1.27



    CONDENSED BALANCE SHEETS
    (Unaudited)
    ($000's)
    December 30,  December 31,
    2006         2005

    ASSETS:
    Cash & cash equivalents                       $124,663      $85,258
    Receivables                                    152,608      157,119
    Inventories                                    184,259      161,347
    Other current assets                            23,783       17,024
    Total current assets                        485,313      420,748
    Plant & equipment, net                          87,952       93,202
    Other assets                                    97,827      112,630
    Total Assets                               $671,092     $626,580
    LIABILITIES & EQUITY:
    Current maturities on long-term debt           $10,730      $10,972
    Accounts payable and other accrued liabilities 110,185       93,065
    Total current liabilities                   120,915      104,037
    Long-term debt                                  10,741       21,439
    Other non-current liabilities                   34,877       38,783
    Stockholders' equity                           504,559      462,321
    Total Liabilities & Equity                 $671,092     $626,580

    




For further information:

For further information: Stephen L. Gulis Jr. of Wolverine World Wide, 
Inc., +1-616-866-5570 Web Site: http://www.wolverineworldwide.com

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WOLVERINE WORLD WIDE, INC.

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