Wolverine Q3 Earnings Up 8.1% on 5.2% Revenue Rise

Wolverine World Wide, Inc. reported revenue for the third quarter of 2003 rose 5.2 percent to $230.6 million compared to $219.2 million reported for the third quarter of 2002. Third quarter 2003 earnings per share increased 8.1 percent to $0.40 compared to $0.37 generated during the same quarter last year.

For the first three quarters of 2003, revenue and earnings per share reached $606.1 million and $0.81 respectively, representing a 7.1 percent improvement in revenue and an 11.0 percent earnings per share increase.

“We are pleased with the Company's record third quarter results,” stated Timothy J. O'Donovan, Wolverine's President and CEO. “This performance was driven by solid revenue increases from Merrell, Hush Puppies and the Wolverine Footwear Group. In addition, all of our branded footwear businesses generated earnings gains in the quarter. I am especially pleased with the improved profitability of our recently acquired CAT European business, which is beginning to realize the benefits of our operating model.”

“Our business portfolio is generating strong operating leverage,” reported the Company's CFO, Stephen L. Gulis Jr. “Our record third quarter earnings per share was driven by a 200 basis point expansion in gross margin, which reached 37.6 percent for the third quarter. This increase relates primarily to heightened consumer demand for our higher margin lifestyle product offerings, along with reduced inventory markdowns and improved operating efficiencies. Year-to-date gross margin reached 36.6 percent, a 90 basis point improvement over 2002. We expect to close 2003 with full year margin near this improved year-to-date level.

“Our asset management programs are yielding strong results. Compared to the prior year third quarter, inventories were reduced 4.2 percent while accounts receivable increased slightly on record sales. These programs have led to improved asset returns, lower working capital investment and reduced levels of debt and interest expense. We exited the third quarter of 2003, historically our peak in working capital investment, with no outstanding revolving debt.”

O'Donovan concluded, “We are entering the fourth quarter with a 5.5 percent increase in order backlog. Given this backlog increase and historic reorder levels, we expect to achieve our previously stated full year 2003 revenue and earnings per share guidance of $875 million to $885 million and $1.21 to $1.24 per share respectively. Turning to 2004, we have begun our planning process, and our initial goals are for revenue to increase to a range of $945 to $965 million, with earnings per share of $1.34 to $1.40.”

WOLVERINE WORLD WIDE, INC.

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

                            12 Weeks Ended               36 Weeks Ended
                       September 6,  September 7,   September 6,  September 7,
                           2003          2002           2003          2002

    Revenue             $230,571      $219,197       $606,096      $565,750
    Cost of products
     sold                143,857       141,179        384,462       364,009

    Gross profit          86,714        78,018        221,634       201,741
    Selling and
     administrative
     expenses             60,424        53,428        168,129       150,816

    Operating profit      26,290        24,590         53,505        50,925
    Other expense          1,862         1,627          4,306         4,829

    Earnings before
     income taxes and
      minority interest   24,428        22,963         49,199        46,096

    Income taxes           7,904         7,561         15,944        15,192

    Earnings before
     minority interest    16,524        15,402         33,255        30,904

    Minority interest        110            60            147            60

    Net earnings         $16,414       $15,342        $33,108       $30,844

    Diluted earnings
     per share             $ .40         $ .37          $ .81         $ .73