Wolverine World Wide, Inc. reported revenue totaled $288.2 million for the first quarter of 2008, a 2.6% increase over first quarter 2007 revenue of $281.1 million. Gross margin as a percentage of net sales increased 160 basis points to 42.2% from 40.6% for the year-ago quarter, which led net income to a 6.3% increase to $23.7 million from $22.3 million last year. Earnings per share increased to 46 cents, a 17.9% increase over first quarter 2007 earnings per share of 39 cents.


“During the quarter, revenue growth was strongest in the Outdoor Group and our international businesses,” commented Blake Krueger, CEO and president. “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.”

                   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