Wolverine World Wide, Inc. Announces Record Fourth Quarter Revenue and Earnings with EPS up 16.7%; Increases 2008 Earnings Estimate



    ROCKFORD, Mich., Jan. 30 /CNW/ -- Wolverine World Wide, Inc. (NYSE:   WWW)
today reported record revenue and earnings per share for its fourth quarter
and 2007 fiscal year, marking its seventh consecutive year of both record
revenue and earnings per share.  The Company also increased its earnings per
share estimate for 2008.
    "Our exceptional financial performance in 2007 underscores the strength
of our global business model," stated Blake W. Krueger, the Company's CEO and
President.  "Wolverine has a unique operating platform consisting of a
powerful portfolio of eight lifestyle brands, a broad geographic reach that
spans 180 countries and a diverse global distribution strategy which focuses
on many different consumer groups around the world.  Our business model has
enabled us to consistently deliver growth and record earnings per share, even
in the face of macroeconomic headwinds.  In 2007, our revenue and earnings
increases were broad-based with all major geographic regions experiencing
growth."
    Fourth quarter 2007 earnings per share increased to $0.49, a 16.7 percent
increase over fourth quarter 2006 earnings per share of $0.42.  Fiscal 2007
earnings per share grew to a record $1.70, achieving a 15.6 percent increase
over the $1.47 reported in 2006 and exceeded the upper-end of the Company's
earnings per share estimate by $0.05.
    The Company achieved record revenue totaling $1.199 billion for 2007, a
5.0 percent increase over 2006 revenue of $1.142 billion.  For the fourth
quarter of 2007, the Company reported revenue of $357.4 million, a 4.6 percent
increase over fourth quarter 2006 revenue of $341.7 million.
    Continued Krueger, "Overall, the Outdoor Group set the pace with the
Merrell business posting robust double-digit increases in both revenue and
earnings for the year.  Merrell enters 2008 with very positive momentum in all
geographic regions.  Excluding our businesses in transition, the Hush Puppies
Company, Heritage Brands Group and Wolverine Footwear Group all posted revenue
gains for the year. "
    "In the fourth quarter, gross margin increased 110 basis points compared
to the same quarter of last year, helping to contribute to a 70 basis point
improvement for the full year," reported the Company's CFO, Stephen L. Gulis
Jr.   "Operating margin for the full year 2007 significantly exceeded our plan
and grew to 11.6 percent, reflecting the strong gross margin improvement.
    "Inventory was down 10.0 percent at year-end and our solid operating
results generated approximately $128 million of cash from operating
activities. Our return on assets and return on equity reached record levels,
and the Company's overall financial position has never been stronger."
    Mr. Krueger continued, "Our 2007 year-end order backlog was up nearly 10
percent over the prior year-end level, and our business model continues to
deliver expanding operating margin and improved financial metrics in a
challenging consumer environment.  We now expect revenue for 2008 to range
from $1.230 to $1.260 billion.  Based on the strength of our performance and
the confidence we have in the breadth and diversity of our global business
model, we are increasing our 2008 earnings per share estimate from our
previously announced range of $1.78 to $1.84, to a range of $1.80 to $1.88."
    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, 2008.
    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 nearly 180 countries. For
additional information, please visit our website, www.wolverineworldwide.com.
    This press release contains forward-looking statements, including those
relating to projected 2008 sales and earnings, the Company's business model,
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; trade defense
actions by countries; 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; regulatory or other
changes affecting the supply of materials used in manufacturing; 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; weather; 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 29, December 30, December 29, December 30,
                           2007         2006         2007         2006
    

    
    Revenue               $357,423     $341,735   $1,198,972   $1,141,887
    Cost of products sold  219,973      214,019      727,041      700,349
       Gross margin        137,450      127,716      471,931      441,538
    

    
    Selling and
     administrative
     expenses               99,306       95,179      333,151      318,243
       Operating margin     38,144       32,537      138,780      123,295
    

    
    Interest (income)
     expense, net              309         (217)        (664)        (202)
    Other expense              449          287          873        1,205
                               758           70          209        1,003
       Earnings before
        income taxes        37,386       32,467      138,571      122,292
    

    Income taxes            11,790        8,823       45,685       38,645

    Net earnings           $25,596      $23,644      $92,886      $83,647

    
    Diluted earnings
     per share                $.49         $.42        $1.70        $1.47
    



    
                           CONDENSED BALANCE SHEETS
                                 (Unaudited)
                                   ($000's)
    

    
                                                   December 29,   December 30,
                                                       2007           2006
    ASSETS:
      Cash & cash equivalents                          $76,087       $124,663
      Receivables                                      179,934        152,608
      Inventories                                      165,925        184,259
      Other current assets                              24,168         23,783
       Total current assets                            446,114        485,313
      Property, plant & equipment, net                  85,417         87,952
      Other assets                                     108,204         97,827
       Total Assets                                   $639,735       $671,092
    LIABILITIES & EQUITY:
      Current maturities on long-term debt             $10,731        $10,730
      Accounts payable and other accrued liabilities   112,905        110,185
       Total current liabilities                       123,636        120,915
      Long-term debt                                         -         10,741
      Other non-current liabilities                     36,967         34,877
      Stockholders' equity                             479,132        504,559
       Total Liabilities & Equity                     $639,735       $671,092
    




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            
     http://www.streetevents.com

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WOLVERINE WORLD WIDE, INC.

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