Wolverine World Wide, Inc. Reports Record Revenue and Earnings Per Share for 24th Consecutive Quarter



    ROCKFORD, Mich., July 9 /CNW/ -- Wolverine World Wide, Inc. (NYSE:   WWW)
today reported record revenue and earnings per share for the second quarter of
2008, which represents the Company's 24th consecutive quarter of record
results.
    Revenue totaled $267.4 million in the quarter ended June 14, 2008, a 6.8%
increase over revenue of $250.3 million in the prior year. Earnings per share
grew 17.9% to $0.33 versus $0.28 in the second quarter of 2007. For the first
half of 2008, revenue reached $555.6 million, a 4.6% gain over the $531.4
million reported for the first half of 2007. Earnings per share grew to $0.79
per share, up 17.9% from $0.67 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 another record quarter for the Company,
particularly in light of the generally tough economic conditions in several
major global markets. Our strong financial results were broad-based -- all
four of our branded operating groups contributed to the revenue increase as
consumers around the world continued to embrace the style, performance and
innovation of the lifestyle brands in the Wolverine portfolio. Our revenue
increase was also geographically diverse, as all global regions reported sales
increases in the quarter.
    "We are proud of the Company's solid financial performance in the first
half of 2008. Our business model of operating multiple brands across a broad
array of global markets and distribution channels continues to produce
excellent results in a challenging business environment. The innovative
product offerings from our eight great brands are in demand with consumers in
nearly 200 countries and territories around the world."
    Don Grimes, the Company's Chief Financial Officer, commented, "Gross
margin in the second quarter of 2008 increased modestly to 38.3%, as benefits
from foreign currency translation were offset by increased product and freight
costs. Year-to-date gross margin grew to 40.3%, an improvement of 88 basis
points compared to the prior year. Operating margin of 9.7% for the second
quarter of 2008 improved 27 basis points over the second quarter of 2007. This
improvement reflects continued tight control on operating expenses, which
decreased 13 basis points as a percentage of sales compared to the prior year.
We are pleased with our operating margin expansion given the continuing
investment in our brand marketing and product initiatives.
    "Inventory levels were down 7.0% compared to last year, as sound
inventory management programs were successfully executed in the quarter. Our
second quarter accounts receivable increased 12.8% due to the strong quarterly
sales performance, particularly in the latter half of the quarter. We
repurchased 209,700 shares of stock in the quarter for $5.9 million and ended
the second quarter with a cash balance of $77.9 million."
    Krueger concluded, "The Company's impressive second quarter performance
is a testament to our team's focused execution of our global brand strategy.
In light of the challenging retail environment, we were pleased that our order
backlog was up in the mid single-digit range at the end of the second quarter.
Our business model continues to deliver record financial results."
    The Company is maintaining its full year 2008 revenue guidance of $1.23
to $1.26 billion and its earnings per share range of $1.83 to $1.90,
representing growth of 7.6% to 11.8% over the $1.70 reported for 2007.
    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 July 23, 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           24 Weeks Ended
                               June 14,     June 16,    June 14,     June 16,
                                  2008         2007        2008         2007

    Revenue                   $267,362     $250,329    $555,600     $531,381
    Cost of products sold      164,963      154,801     331,640      321,852
       Gross profit            102,399       95,528     223,960      209,529
       Gross margin              38.3%        38.2%       40.3%        39.4%

    Selling and administrative
     expenses                   76,511       71,962     161,803      153,297
       Operating profit         25,888       23,566      62,157       56,232
       Operating margin           9.7%         9.4%       11.2%        10.6%

    Interest (income) expense,
     net                           302         (104)        365         (795)
    Other expense                  312          332         879          172
                                   614          228       1,244         (623)
       Earnings before income
        taxes                   25,274       23,338      60,913       56,855

    Income taxes                 8,462        7,820      20,400       19,047

    Net earnings               $16,812      $15,518     $40,513      $37,808

    Diluted earnings per share    $.33         $.28        $.79         $.67



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

                                                         June 14,    June 16,
                                                            2008        2007

    ASSETS:
     Cash & cash equivalents                              $77,923     $77,036
     Receivables                                          195,572     173,437
     Inventories                                          171,731     184,743
     Other current assets                                  23,388      24,843
       Total current assets                               468,614     460,059
     Property, plant & equipment, net                      84,388      86,658
     Other assets                                         110,140      99,965
       Total Assets                                      $663,142    $646,682
    LIABILITIES & EQUITY:
     Current maturities on long-term debt                 $10,725     $10,730
     Accounts payable and other accrued liabilities       120,527     115,298
       Total current liabilities                          131,252     126,028
     Long-term debt                                        30,500      10,735
     Other non-current liabilities                         36,901      34,447
     Stockholders' equity                                 464,489     475,472
       Total Liabilities & Equity                        $663,142    $646,682
    





For further information:

For further information: Donald T. 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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