Wolverine World Wide, Inc. Announces Record Results With Earnings Per Share Up 14.7%



    ROCKFORD, Mich., April 18 /CNW/ -- Wolverine World Wide, Inc. (NYSE:   WWW)
today reported record earnings and revenue for the first quarter of 2007 ended
March 24, 2007, and increased its full year 2007 earnings per share estimate.
    "Wolverine World Wide had a very strong first quarter, as demonstrated by
our record results and continued consumer enthusiasm for our global brands,"
stated Timothy J. O'Donovan, the Company's Chairman and CEO.  The Company
achieved record revenue totaling $281.1 million for the first quarter of 2007,
a 6.9 percent increase over first quarter 2006 revenue of $262.8 million.
First quarter 2007 earnings per share increased to $0.39, a 14.7 percent
increase over first quarter 2006 earnings per share of $0.34.
    Blake W. Krueger, President and COO of the Company commented, "We are
pleased to report that three of our four major branded operating groups
contributed to the revenue increase in the first quarter of 2007, with both
the Outdoor Footwear Group and the Heritage Brands Group posting double-digit
revenue gains.  Hush Puppies contributed a low-single-digit revenue gain,
while the Wolverine Footwear Group was negatively impacted in the quarter due
to the planned decrease in the military contract business.  The Outdoor Group
remained the Company's leading profit contributor during the quarter, while
Hush Puppies, Wolverine Footwear Group and the Heritage Brands Group all
produced significant double-digit profit increases.
    "Our strong performance in the first quarter resulted in the Company
achieving its nineteenth consecutive quarter of record revenue and earnings
per share.  By executing our global business model and leveraging our
portfolio of highly recognized global lifestyle brands, we consistently
deliver record results and reward our shareholders."
    "First quarter earnings were strong as a result of gross margin expanding
to an all-time record," reported the Company's CFO, Stephen L. Gulis Jr.
"First quarter 2007 gross margin of 40.6 percent improved 30 basis points over
first quarter 2006, reflecting continued growth in our lifestyle brands and an
improved business mix.  We decreased selling and administrative expense 10
basis points, reflecting a tight control on expenses.  We are pleased with our
operating margin expansion given the continuing investment in our new growth
initiatives and the first quarter impact of European anti-dumping duties.
    "First quarter 2007 accounts receivable were up 5.3 percent, and
inventory levels were up 9.3 percent on revenue growth of 6.9 percent. 
Inventory levels at quarter end were lower than projected plan levels.  The
Company ended the quarter with a cash balance of approximately $63 million,
and we repurchased 1,164,700 shares of stock in the quarter totaling $33.1
million."
    O'Donovan concluded, "The consumer continues to embrace our global
lifestyle brands, and we ended the first quarter of 2007 with our order
backlog up over 8 percent.  On the strength of the first quarter results, we
are increasing the Company's 2007 earnings per share estimate to range from
$1.57 to $1.63, up from our previous estimate of $1.56 to $1.62, which
reflects our first quarter 2007 results exceeding our plan by $0.01.  We
continue to expect revenue to range from $1.200 billion to $1.230 billion.
These estimates are consistent with our stated long-term objectives of growing
annual revenue in the mid to upper-single digit range and delivering double-
digit earnings per share growth while investing in initiatives for the
future."
    The Company will host a conference call at 8:30 a.m. EDT 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.  A replay of the
call will be available at the Company's website through May 2, 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 nearly 180 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; 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;
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; 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)
                                                           12 Weeks Ended
                                                     March 24,      March 25,
                                                       2007          2006

    Revenue                                         $281,052       $262,839
    Cost of products sold                            167,051        156,964
      Gross margin                                   114,001        105,875

    Selling and administrative expenses               81,335         76,247
      Operating margin                                32,666         29,628

    Interest (income) expense, net                      (690)           109
    Other expense (income)                              (160)           134
                                                        (850)           243
      Earnings before income taxes                    33,516         29,385

    Income taxes                                      11,227          9,756

    Net earnings                                     $22,289        $19,629

    Diluted earnings per share                          $.39           $.34



                             CONDENSED BALANCE SHEETS
                                   (Unaudited)
                                    ($000's)
                                                    March 24,      March 25,
                                                      2007           2006
    ASSETS:
      Cash & cash equivalents                          $62,769        $46,217
      Receivables                                      199,003        189,034
      Inventories                                      196,096        179,385
      Other current assets                              22,339         19,058
        Total current assets                           480,207        433,694
      Plant & equipment, net                            87,689         91,414
      Other assets                                     101,725        113,880
        Total Assets                                  $669,621       $638,988

    LIABILITIES & EQUITY:
      Current maturities on long-term debt             $10,730        $10,730
      Accounts payable and other accrued liabilities   120,452        105,299
        Total current liabilities                      131,182        116,029
      Long-term debt                                    10,738         21,472
      Other non-current liabilities                     32,941         38,458
      Stockholders' equity                             494,760        463,029
      Total Liabilities & Equity                      $669,621       $638,988

    




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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