Wolverine World Wide, Inc. Reports 25th Consecutive Quarter of Record Results; Increases Full Year EPS Estimate



    ROCKFORD, Mich., Oct. 1 /CNW/ -- Wolverine World Wide, Inc. (NYSE:   WWW)
today reported record sales and earnings for the third quarter of 2008, the
Company's 25th consecutive quarter of record revenue and earnings per share
results.
    Revenue totaled $318.9 million in the quarter ended September 6, 2008, a
2.8% increase over revenue of $310.2 million in the prior year.  Fully diluted
earnings per share were $0.62 versus $0.54 in the third quarter of 2007, an
increase of 14.8%.  For the first three quarters of 2008, revenue reached
$874.5 million, a 3.9% gain over the $841.5 million reported for the first
three quarters of 2007.  Year-to-date reported earnings per share were $1.41
per share, up 16.4% from $1.21 per share for the same period of 2007.
    Blake W. Krueger, the Company's Chief Executive Officer and President
commented, "We are pleased to report strong results for the third quarter,
particularly in light of continuing tough global economic conditions.  Our
team's focused execution against our multi-brand, multi-country and
multi-category brand-building model enables us to consistently post excellent
financial results.  The Company's financial performance in the quarter was
highlighted by the Merrell brand, which delivered a high single-digit revenue
gain and a double-digit increase in earnings contribution.
    "While 2008 has thus far proven to be a challenging year for the footwear
industry, we are extremely proud of the balanced performance of our global
brand portfolio.  The Company remains focused on executing our global
lifestyle brand strategy, while simultaneously driving operating efficiencies
to help support that strategy."
    Don Grimes, the Company's Chief Financial Officer, commented, "Operating
margin of 14.5% in the quarter is a 22 basis point improvement over the prior
year, and was driven by modest gross margin expansion and operating expense
leverage.  Inventory levels were down 2.1% for the quarter, while accounts
receivable increased 2.1% on the 2.8% revenue increase.  The Company
repurchased approximately 745,000 shares of stock in the quarter for $19.0
million, and ended the third quarter with a cash balance of $74.3 million. The
Company's balance sheet remains one of the strongest in the industry."
    Based on the strength of reported third quarter results and its
diversified global business model, the Company is raising its full-year
earnings guidance to a range of $1.87 to $1.92 per fully diluted share on a
revised revenue range of $1.220 to $1.240 billion.  The revised earnings per
share range represents growth of 10% to 13% over 2007 earnings per share of
$1.70.
    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 15, 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 200 countries and
territories. 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
and corporate growth. 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; the development
of 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 6, September 8, September 6, September 8,
                             2008         2007        2008         2007
    Revenue               $318,852     $310,168     $874,452     $841,549
    Cost of products sold  190,122      185,216      521,762      507,068
      Gross profit         128,730      124,952      352,690      334,481
      Gross margin            40.4%        40.3%        40.3%        39.7%
    

    
    Selling and
     administrative
     expenses               82,389       80,548      244,192      233,845
      Operating profit      46,341       44,404      108,498      100,636
      Operating margin        14.5%        14.3%        12.4%        12.0%
    

    
    Interest (income)
     expense, net              309         (179)         674         (973)
    Other (income) expense    (880)         252           (1)         424
                              (571)          73          673         (549)
    Earnings before income
     taxes                  46,912       44,331      107,825      101,185
    

    
    Income taxes            15,721       14,848       36,121       33,895
    

    
    Net earnings           $31,191      $29,483      $71,704      $67,290
    

    
    Diluted earnings per
     share                    $.62         $.54        $1.41        $1.21
    



    
                           CONDENSED BALANCE SHEETS
                                 (Unaudited)
                                   ($000's)
                                                   September 6,   September 8,
                                                       2008           2007
    ASSETS:
      Cash & cash equivalents                        $74,310        $24,770
      Receivables                                    240,522        235,525
      Inventories                                    194,062        198,318
      Other current assets                            21,703         25,616
        Total current assets                         530,597        484,229
      Property, plant & equipment, net                83,258         86,026
      Other assets                                   107,839        102,158
        Total Assets                                $721,694       $672,413
    LIABILITIES & EQUITY:
      Current maturities on long-term debt           $10,725        $10,730
      Short-term debt                                 70,897              -
      Accounts payable and other accrued
       liabilities                                   140,518        141,460
        Total current liabilities                    222,140        152,190
      Long-term debt                                       -         10,731
      Other non-current liabilities                   37,369         36,052
      Stockholders' equity                           462,185        473,440
        Total Liabilities & Equity                  $721,694       $672,413

    




For further information:

For further information: Don Grimes of Wolverine World Wide, Inc.,
+1-616-863-4404 Web Site: http://www.wolverineworldwide.com

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WOLVERINE WORLD WIDE, INC.

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