Wolverine Q2 Net Up 18.4% on 8.0% Sales Rise

Wolverine World Wide, Inc. reported second quarter 2004 revenue totaled $198.8 million, an 8.0% increase over second quarter 2003 revenue of $184.0 million. Earnings per share for the second quarter of 2004 were 27 cents compared to the 23 cents reported for the second quarter of 2003, an increase of 17.4%.

For the first half of 2004, revenue reached $423.6 million, a 12.8% gain over the $375.5 million reported for the first half of 2003. Net earnings for the first half of 2004 grew to $23.3 million ($0.57 per share), up 39.5% from $16.7 million ($0.41 per share) for the same period of 2003.

“Our strong performance in the second quarter of 2004 was led by the Outdoor Group, with Merrell remaining the top performer in our portfolio of brands,” stated Timothy J. O'Donovan, the Company's President and CEO. “In addition, profit improvements were generated in the global Hush Puppies business, Wolverine Footwear Group and our slipper, leather and retail operations.

“We are very pleased with the first half of 2004 and the double-digit revenue increase driven by strong consumer response to our global brands and innovative product offerings. Our year-to-date net earnings increase of 39.5 percent reflects the diversity of our brand portfolio and the efficiency of our business model. We believe the Company is uniquely positioned for continued growth and is making progress toward its goal of becoming the world's premier non-athletic footwear company.”

Stephen L. Gulis Jr., the Company's CFO, reported, “During the second quarter of 2004, the Company continued to realize significant gross margin improvement. Gross margin grew to 38.0 percent, a 230 basis point improvement over the second quarter of 2003. This improvement resulted primarily from a higher margin business mix, an increase in average selling prices and lower product costs in our European operations. All operating groups equaled or exceeded 2003 margin levels in the quarter.

“Selling and administrative expenses as a percentage of revenue for the second quarter of 2004 were 29.3 percent. The Company continued to increase its investment in marketing and product development initiatives to support and strengthen the global positioning of our brands.

“Our focus on working capital management and improved operating results further strengthened the Company's balance sheet in the quarter. Accounts receivable were reduced by 7.5 percent and inventory increased 1.0 percent on a year-to-date sales increase of 12.8 percent. These results allowed the Company to achieve a cash balance in excess of $63 million at quarter-end.”

O'Donovan concluded, “We ended the second quarter of 2004 with our order backlog up approximately 17 percent, which reflects continued strong retailer demand across our product offerings. We expect this backlog to assist us in reaching our previously stated 2004 annual estimates of revenue ranging from $960-$980 million and earnings per share ranging from $1.44-$1.52 per share.”

                        WOLVERINE WORLD WIDE, INC.

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

                                 12 Weeks Ended            24 Weeks Ended
                               June 19,    June 14,    June 19,    June 14,
                                 2004        2003        2004        2003
  Revenue                     $198,774    $184,040    $423,645    $375,525
  Cost of products sold        123,260     118,316     262,690     240,605
      Gross profit              75,514      65,724     160,955     134,920

  Selling and administrative
   expenses                     58,316      50,822     124,653     107,705
      Operating profit          17,198      14,902      36,302      27,215

  Interest expense                 891       1,272       1,828       2,548
  Other expense                    175        (120)        247        (104)
                                 1,066       1,152       2,075       2,444
      Earnings before
       income taxes
       and minority interest    16,132      13,750      34,227      24,771
  Income taxes                   5,181       4,458      10,959       8,039

      Earnings before
       minority interest        10,951       9,292      23,268      16,732
  Minority interest                (34)         11         (16)         37

      Net earnings             $10,985      $9,281     $23,284     $16,695

  Diluted earnings per share      $.27        $.23        $.57        $.41