Wolverine World Wide Ups Guidance on Strong Q3 Sales

Wolverine World Wide, Inc. third quarter 2006 revenue totaled $298.9 million, a 7.1% increase over third quarter 2005 revenue of $279.1 million. Earnings per share for the third quarter of 2006 were 46 cents compared to 42 cents reported for the third quarter of 2005, an increase of 9.5%.

The 2006 results include a $0.03 per share decrease in earnings related to both FAS123® stock incentive expense and investment spending for the Patagonia Footwear and Merrell Apparel initiatives.

For the first three quarters of 2006, revenue reached $800.2 million, an 8.0 percent gain over the $740.0 million reported for the first three quarters of 2005. Earnings per share for the first three quarters of 2006 grew to $1.05 per share, up 15.4 percent from $0.91 per share for the same period of 2005.

“We are pleased to have achieved our seventeenth consecutive quarter of record revenue and earnings per share,” stated Timothy J. O'Donovan, the Company's Chairman and CEO. “Our strategy of building a strong portfolio of global consumer brands continues to drive consistent growth and exceptional earnings performance. Three of our four major operating groups, the Hush Puppies Company, the Heritage Brands Group and the Outdoor Group, all posted revenue and earnings gains in the quarter, and the Wolverine Footwear Group experienced a decline principally due to the planned reduction in the Bates military business. Our International businesses contributed significantly to the quarter's revenue increase, particularly in Europe, where the Caterpillar, Hush Puppies, Merrell, and Sebago brands all posted revenue gains.”

“Our business model continues to generate strong results, as evidenced by revenue and earnings gains in the quarter,” stated the Company's CFO, Stephen L. Gulis Jr. “Solid gross margin expansion drove an increase in operating margin in the quarter while we continued to invest in our brands and the Patagonia Footwear and Merrell Apparel growth initiatives. Our balance sheet remained strong in the quarter. Accounts receivable growth was below the rate of our revenue growth, inventories increased modestly, and we ended the quarter with a cash balance of approximately $70 million.”

Mr. O'Donovan continued, “The order backlog for footwear at the end of the third quarter was up nearly 6 percent. This backlog was impacted by the planned decrease in the Bates military business as the Department of Defense continued to scale back its purchases. The backlog increase, excluding Bates, approximated 10 percent.

“Due to the Company's strong third quarter results and current backlog position, we are increasing the Company's 2006 earnings per share estimate. We now expect earnings per share to range from $1.41 to $1.44 up from our previous estimate of $1.38 to $1.42. Our 2006 revenue range estimate remains $1.120 to $1.140 billion.

“Looking ahead to 2007, our initial estimates are for revenue to range from $1.200 to $1.230 billion and earnings per share to range from $1.56 to $1.62. Our 2007 estimates are in line with our stated long-term financial objectives of annually 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 2007 while driving further operating leverage.”

Mr. O'Donovan concluded, “We are pleased with the Company's performance. Our brands are resonating with consumers around the world, and we have a number of exciting growth initiatives in place to support our continued expansion. We look forward to the retail launch of Patagonia Footwear in early Spring 2007 and Merrell Apparel in Fall 2007. We are confident that these initiatives, along with the steady growth of our global brand portfolio, position Wolverine to continue rewarding our shareholders both today and in the future.”

                          WOLVERINE WORLD WIDE, INC.

                    CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (Unaudited)
                       ($000's, except per share data)

                               12 Weeks Ended           36 Weeks Ended
                         September 9, September 10, September 9, September 10,
                            2006          2005         2006         2005
    Revenue               $298,856     $279,116     $800,150     $739,997
    Cost of products sold  181,314      170,455      486,329      450,476
      Gross margin         117,542      108,661      313,821      289,521

    Selling and
     administrative
     expenses               78,079       72,087      223,063      208,487
      Operating margin      39,463       36,574       90,758       81,034

    Interest (income)
     expense, net             (122)         293           16        1,292
    Other (income) expense     452         (158)         917         (172)
                               330          135          933        1,120
      Earnings before income
       taxes                39,133       36,439       89,825       79,914

    Income taxes            12,993       11,805       29,823       25,891

    Net earnings           $26,140      $24,634      $60,002      $54,023

    Diluted earnings
     per share                $.46         $.42        $1.05         $.91