Wolverine World Wide, Inc. Announces Record Third Quarter Results and Increases 2007 Earnings Estimate



    ROCKFORD, Mich., Oct. 3 /CNW/ -- Wolverine World Wide, Inc. (NYSE:   WWW)
today reported record revenue and earnings for its third quarter of 2007, and
increased its full-year 2007 earnings per share estimate.
    Third quarter 2007 revenue totaled $310.2 million, a 3.8 percent increase
over third quarter 2006 revenue of $298.9 million.  Earnings per share for the
third quarter of 2007 were $0.54 compared to $0.46 reported for the third
quarter of 2006, an increase of 17.4 percent.
    For the first three quarters of 2007, revenue reached $841.5 million, a
5.2 percent gain over the $800.2 million reported for the first three quarters
of 2006.  Earnings per share for the first three quarters of 2007 grew to
$1.21 per share, up 15.2 percent from $1.05 per share for the same period of
2006.
    "We are pleased to have achieved another record quarter, with strong
contributions across our branded footwear groups," stated Blake W. Krueger,
the Company's CEO and President.  "Our performance represents our 21st
consecutive quarter of both record revenue and earnings per share.  The Hush
Puppies Company, the Heritage Brands Group, the Outdoor Group and the
Wolverine brand all contributed to the record earnings gains in the quarter.
The Merrell brand continued its portfolio-leading performance by posting
double-digit gains in both revenue and earnings.
    "Our decision to focus on our portfolio of highly recognized global
brands and transition out of our lower-margin businesses reduced our revenue
increase in the quarter, but also contributed to our significant gross margin
improvement.  This action, combined with anticipated lower leather demand,
reduced our third quarter revenue increase by more than $15 million.  Revenue
gains in our core businesses more than offset these reductions.
    "Our business strategy, which is focused on building a strong portfolio
of global consumer brands, continues to drive record performance.  Our diverse
brands are now marketed in nearly 180 countries reaching a variety of
consumers through a flexible distribution channel strategy. This diversity
helps insulate us from volatility in any particular market or channel, and
enables the Company to reward our shareholders with consistent financial
performance."
    "Our operating model continues to generate strong results, as evidenced
by the strong earnings gain and gross margin expansion in the quarter," stated
the Company's CFO, Stephen L. Gulis Jr.  "Gross margin expanded 100 basis
points, reflecting a better business mix and, combined with a 10 basis point
decrease in expenses, drove 110 basis points of improvement in operating
margin. Our balance sheet remains strong with inventories being reduced 3.4
percent and a cash balance of approximately $25 million."
    Mr. Krueger continued, "The order backlog for footwear at the end of the
third quarter was up more than 11 percent.  Due to the Company's strong third
quarter results and current backlog position, we are increasing the Company's
2007 earnings per share estimate.  We now expect earnings per share to range
from $1.63 to $1.65 for the full year, up from our previous estimate of $1.60
to $1.64.  We are maintaining our 2007 revenue range at $1.200 to $1.230
billion and still expect revenue to be at the lower end of the range.
    "Looking ahead to 2008, our initial estimates are for revenue to range
from $1.245 to $1.275 billion and earnings per share to range from $1.78 to
$1.84.  Our 2008 estimates are in line with our stated long-term financial
objectives of growing revenue in the mid to upper single-digit range and
generating double-digit earnings per share growth.  We will continue to invest
in future growth initiatives in 2008 while driving further operating
leverage."
    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 "Investors" in
the navigation bar, and then click "Webcast" from the top navigation bar of
the "Investors" page.  To listen to the webcast, your computer must have
Windows Media Player, which can be downloaded for free on the Wolverine World
Wide website.  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 October 17, 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.  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;
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)
    

    
                                 12 Weeks Ended           36 Weeks Ended
                           September 8, September 9, September 8, September 9,
                               2007        2006         2007        2006
    

    
    Revenue                  $310,168    $298,856     $841,549    $800,150
    Cost of products sold     185,216     181,314      507,068     486,329
       Gross margin           124,952     117,542      334,481     313,821
    

    
    Selling and
     administrative expenses   80,548      78,079      233,845     223,063
       Operating margin        44,404      39,463      100,636      90,758
    

    
    Interest (income)
     expense, net                (179)       (122)        (973)         16
    Other expense                 252         452          424         917
                                   73         330         (549)        933
    Earnings before
     income taxes              44,331      39,133      101,185      89,825
    

    Income taxes               14,848      12,993       33,895      29,823

    Net earnings              $29,483     $26,140      $67,290     $60,002

    
    Diluted earnings
     per share                   $.54        $.46        $1.21       $1.05
    



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

    
                                                  September 8,   September 9,
                                                      2007           2006
    ASSETS:
       Cash & cash equivalents                      $24,770        $70,339
       Receivables                                  235,525        218,034
       Inventories                                  198,318        205,318
       Other current assets                          25,616         20,480
          Total current assets                      484,229        514,171
       Plant & equipment, net                        86,026         89,395
       Other assets                                 102,158        112,704
          Total Assets                             $672,413       $716,270
    LIABILITIES & EQUITY:
       Current maturities on long-term debt         $10,730        $10,730
       Accounts payable and other accrued
        liabilities                                 141,460        146,076
          Total current liabilities                 152,190        156,806
       Long-term debt                                10,731         21,461
       Other non-current liabilities                 36,052         39,976
       Stockholders' equity                         473,440        498,027
          Total Liabilities & Equity               $672,413       $716,270
    




For further information:

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

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WOLVERINE WORLD WIDE, INC.

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