ROCKFORD, Mich., April 16 /PRNewswire-FirstCall/ -- Wolverine World Wide,
Inc. (NYSE: WWW) today reported record revenue and earnings for the first
quarter of 2008, and increased its full-year 2008 earnings per share estimate.
"Wolverine World Wide had a strong first quarter, as demonstrated by our
record results and continued execution of our global business model," stated
Blake W. Krueger, the Company's CEO and President. "Our unique operating
platform consists of a powerful portfolio of eight lifestyle brands, a broad
geographic reach that spans nearly 200 countries and territories, and a
diverse global distribution strategy that focuses on many different consumer
groups around the world. Our business model reduces our exposure to any
single country, consumer group or fashion trend and permits us to consistently
deliver superior results, even in challenging consumer environments."
The Company's revenue totaled $288.2 million for the first quarter of
2008, a 2.6 percent increase over first quarter 2007 revenue of $281.1
million. Earnings per share increased to $0.46, a 17.9 percent increase over
first quarter 2007 earnings per share of $0.39.
Krueger continued, "During the quarter, revenue growth was strongest in
the Outdoor Group and our international businesses. In particular, our
royalty-based global licensing and distribution businesses had a very strong
quarter. The Outdoor Group remained the Company's leading profit contributor
during the quarter, led by the Merrell businesses in the U.S. and Europe.
This marks the twenty-third consecutive quarter of record revenue and earnings
per share for the Company."
"First quarter earnings were strong, with gross margin expansion driving
operating margin to 12.6 percent, a 100 basis point increase," reported the
Company's CFO, Stephen L. Gulis Jr. "The increase resulted primarily from
improved pricing margins and the positive impact from a weak U.S. dollar in
our Company-owned international wholesale operations.
"First quarter 2008 inventory levels were down 4.0 percent. Inventory
reductions were achieved in several operating groups resulting from the
Company's continued focus on inventory management. Accounts receivable
increased 12.2 percent due to strong spring shipments towards the end of the
quarter. Our balance sheet remains very strong as we repurchased $47.7
million of Company stock during the first quarter and finished the quarter
with a cash balance of $47.5 million and total debt of $70.8 million."
Krueger concluded, "Even in this challenging retail environment, the
consumer continues to embrace our global lifestyle brands, which offer
innovative products that bring style to purpose. We ended the first quarter
of 2008 with our order backlog up over 10 percent. On the strength of our
order backlog and first quarter 2008 results, we are increasing the Company's
2008 earnings per share estimate from our previous estimate of $1.80 to $1.88
to our new range of $1.83 to $1.90. We continue to expect revenue to range
from $1.230 billion to $1.260 billion. The earnings per share estimate is
consistent with our stated long-term objective of delivering double-digit
earnings per share growth while investing in growth 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 . 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 April 30, 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,
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.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
($000's, except per share data)
12 Weeks Ended
March 22, March 24,
2008 2007
Revenue $288,238 $281,052
Cost of products sold 166,677 167,051
Gross margin 121,561 114,001
Selling and administrative
expenses 85,292 81,335
Operating margin 36,269 32,666
Interest (income) expense, net 63 (690)
Other expense (income) 567 (160)
630 (850)
Earnings before income taxes 35,639 33,516
Income taxes 11,938 11,227
Net earnings $23,701 $22,289
Diluted earnings per share $.46 $.39
CONDENSED BALANCE SHEETS
(Unaudited)
($000's)
March 22, March 24,
2008 2007
ASSETS:
Cash & cash equivalents $47,484 $62,769
Receivables 223,323 199,003
Inventories 188,245 196,096
Other current assets 24,050 22,339
Total current assets 483,102 480,207
Property, plant & equipment,
net 85,239 87,689
Other assets 109,832 101,725
Total Assets $678,173 $669,621
LIABILITIES & EQUITY:
Current maturities on
long-term debt $10,731 $10,730
Accounts payable and other
accrued liabilities 115,604 120,452
Total current liabilities 126,335 131,182
Long-term debt 60,066 10,738
Other non-current liabilities 36,419 32,941
Stockholders' equity 455,353 494,760
Total Liabilities & Equity $678,173 $669,621
SOURCE Wolverine World Wide, Inc.
-0- 04/16/2008
/CONTACT: Stephen L. Gulis Jr. of Wolverine World Wide, Inc.,
+1-616-866-5570/
/Web site: http://www.wolverineworldwide.com /
(WWW)
CO: Wolverine World Wide, Inc.
ST: Michigan
IN: TEX FAS
SU: ERN ERP CCA
CB-JK
-- CLW022 --
5729 04/16/2008 06:30 EDT http://www.prnewswire.com
