ROCKFORD, Mich., July 9 /PRNewswire-FirstCall/ -- 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
SOURCE Wolverine World Wide, Inc.
-0- 07/09/2008
/CONTACT: Donald T. Grimes of Wolverine World Wide, Inc.,
+1-616-863-4404/
/Web site: http://www.wolverineworldwide.com /
(WWW)
CO: Wolverine World Wide, Inc.
ST: Michigan
IN: TEX FAS SPT
SU: ERN ERP CCA
AC-CB
-- CLW021 --
0253 07/09/2008 06:30 EDT http://www.prnewswire.com
