Wolverine World Wide, Inc. reported third quarter 2007 revenue totaled $310.2 million, a 3.8% increase over third quarter 2006 revenue of $298.9 million. Earnings per share for the third quarter of 2007 were 54 cents compared to 46 cents reported for the third quarter of 2006, an increase of 17.4%.


For the first three quarters of 2007, revenue reached $841.5 million, a 5.2% gain over the $800.2 million reported for the first three quarters of 2006. Earnings per share for the first three quarters of 2007 grew to $1.21 per share, up 15.2% from $1.05 per share for the same period of 2006.

“We are pleased to have achieved another record quarter, with strong contributions across our branded footwear groups,” stated Blake W. Krueger, the Company's CEO and President. “Our performance represents our 21st consecutive quarter of both record revenue and earnings per share. The Hush Puppies Company, the Heritage Brands Group, the Outdoor Group and the Wolverine brand all contributed to the record earnings gains in the quarter. The Merrell brand continued its portfolio-leading performance by posting double-digit gains in both revenue and earnings.

“Our decision to focus on our portfolio of highly recognized global brands and transition out of our lower-margin businesses reduced our revenue increase in the quarter, but also contributed to our significant gross margin improvement. This action, combined with anticipated lower leather demand, reduced our third quarter revenue increase by more than $15 million. Revenue gains in our core businesses more than offset these reductions.

“Our business strategy, which is focused on building a strong portfolio of global consumer brands, continues to drive record performance. Our diverse brands are now marketed in nearly 180 countries reaching a variety of consumers through a flexible distribution channel strategy. This diversity helps insulate us from volatility in any particular market or channel, and enables the Company to reward our shareholders with consistent financial performance.”

“Our operating model continues to generate strong results, as evidenced by the strong earnings gain and gross margin expansion in the quarter,” stated the company's CFO, Stephen L. Gulis Jr. “Gross margin expanded 100 basis points, reflecting a better business mix and, combined with a 10 basis point decrease in expenses, drove 110 basis points of improvement in operating margin. Our balance sheet remains strong with inventories being reduced 3.4 percent and a cash balance of approximately $25 million.”

Mr. Krueger continued, “The order backlog for footwear at the end of the third quarter was up more than 11 percent. Due to the Company's strong third quarter results and current backlog position, we are increasing the Company's 2007 earnings per share estimate. We now expect earnings per share to range from $1.63 to $1.65 for the full year, up from our previous estimate of $1.60 to $1.64. We are maintaining our 2007 revenue range at $1.200 to $1.230 billion and still expect revenue to be at the lower end of the range.

“Looking ahead to 2008, our initial estimates are for revenue to range from $1.245 to $1.275 billion and earnings per share to range from $1.78 to $1.84. Our 2008 estimates are in line with our stated long-term financial objectives of 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 2008 while driving further operating leverage.”

                     WOLVERINE WORLD WIDE, INC.


                    CONSOLIDATED STATEMENTS OF OPERATIONS

                                 (Unaudited)

                       ($000's, except per share data)


                                 12 Weeks Ended           36 Weeks Ended

                           September 8, September 9, September 8, September 9,

                               2007        2006         2007        2006


    Revenue                  $310,168    $298,856     $841,549    $800,150

    Cost of products sold     185,216     181,314      507,068     486,329

       Gross margin           124,952     117,542      334,481     313,821


    Selling and

     administrative expenses   80,548      78,079      233,845     223,063

       Operating margin        44,404      39,463      100,636      90,758


    Interest (income)

     expense, net                (179)       (122)        (973)         16

    Other expense                 252         452          424         917

                                   73         330         (549)        933

    Earnings before

     income taxes              44,331      39,133      101,185      89,825


    Income taxes               14,848      12,993       33,895      29,823


    Net earnings              $29,483     $26,140      $67,290     $60,002


    Diluted earnings

     per share                   $.54        $.46        $1.21       $1.05