Wolverine Q2 Net Income Up 22% on 8.5% Sales Increase

Wolverine World Wide, Inc. reported that second quarter 2005 revenue totaled $215.7 million, an 8.5% increase over second quarter 2004 revenue of $198.8 million. Earnings per share for the second quarter of 2005 were 22 cents compared to the 18 cents reported for the second quarter of 2004, an increase of 22.2%.

For the first half of 2005, revenue reached $460.9 million, an 8.8% gain over the $423.6 million reported for the first half of 2004. Earnings per share for the first half of 2005 grew to 49 cents per share up 28.9% from 38 cents per share for the same period of 2004.

“Our strong performance in the second quarter of 2005 was highlighted by the Outdoor Group, with Merrell leading the way among our portfolio of brands,” stated Timothy J. O'Donovan, the Company's Chairman and CEO. “Demand for the Company's spring product offerings was significant, as evidenced by the performance of our brands at retail and an increase in at-once orders in the quarter. Of our four branded operating groups, the Heritage Group, the Hush Puppies Company and the Outdoor Group all experienced double-digit revenue and earnings increases. The Wolverine Footwear Group did not experience a revenue increase due to the impact of the planned reduction in Bates military shipments.

“We are pleased with our continued growth in international markets, particularly Europe, where our branded wholesale business experienced a second quarter revenue increase of 39%. Our European CAT, Hush Puppies, Merrell and Sebago businesses all made significant contributions to the increase. Investments in our European infrastructure, brand-building initiatives and service capabilities are delivering a significant payoff as the business continues to expand.

“The first half of 2005 was driven by strong consumer response to innovative product offerings including Merrell Continuum, Wolverine MultiShox, CAT iTech and Hush Puppies sport fashion product. Our unique, market-right product paired with our powerful global brands continues to position the Company for further growth and progress toward its goal of becoming the world's premier footwear company in the markets we serve.”

Stephen L. Gulis Jr., the company's CFO, reported, “During the second quarter of 2005, the Company continued to realize significant gross margin improvement. Gross margin grew to 39.2%, a 120 basis point increase over the second quarter of 2004. The positive impact of foreign currency exchange on product costs and a stronger mix of higher-margin goods contributed to the increase. A portion of these improvements was offset by slightly increased product costs from domestic and sourced operations.

“Our balance sheet remains strong, as the Company ended the quarter with a cash balance in excess of $74 million. Interest-bearing debt of $43.9 million reflects a $16.0 million reduction when compared to the second quarter of 2004. Additionally, working capital increases were at levels which supported the revenue increase.”

O'Donovan concluded, “We ended the second quarter of 2005 with our order backlog up approximately 12% which reflects strong retailer demand across our brands. We expect this backlog to assist us in reaching our previously stated 2005 annual estimates of revenue ranging from $1.045-$1.065 billion and earnings per share ranging from $1.22-$1.27 per share. These estimates do not include any impact from the potential repatriation of foreign earnings under the American Jobs Creation Act of 2004 which the Company is currently evaluating.”

                       WOLVERINE WORLD WIDE, INC.

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

                                12 Weeks Ended          24 Weeks Ended
                             June 18,    June 19,    June 18,    June 19,
                              2005        2004        2005         2004
  Revenue                   $215,706    $198,774    $460,880    $423,645
  Cost of products sold      131,252     123,260     280,021     262,690
      Gross profit            84,454      75,514     180,859     160,955

  Selling and administrative
   expenses                   64,243      58,316     136,398     124,653
      Operating profit        20,211      17,198      44,461      36,302

  Interest expense               481         891       1,000       1,828
  Other expense (income)         120         175         (14)        247
                                 601       1,066         986       2,075
      Earnings before income
       taxes and minority
        interest              19,610      16,132      43,475      34,227
  Income taxes                 6,353       5,181      14,086      10,959

      Earnings before minority
       interest               13,257      10,951      29,389      23,268
  Minority interest                -         (34)          -         (16)

      Net earnings           $13,257     $10,985     $29,389     $23,284

  Diluted earnings per share    $.22        $.18        $.49        $.38