Commenting on the recently announced EU trade action regarding leather upper footwear sourced from China and Vietnam, Timothy J. O'Donovan, Wolverine's Chairman and CEO, stated, “The EU has been considering these trade actions for over eight months and this has given our brands and sourcing organization time to adapt to possible measures. We believe these protectionist measures are unwarranted, and we will continue to partner with European importers, retailers and consumers to limit the impact of any final trade measures which will be evaluated by the Commission over the coming months.
“Despite this trade action, we are reaffirming our previously announced 2006 estimates with a revenue range of $1.110 to $1.130 billion and an earnings per share range of $1.34 to $1.40. However, we now anticipate that we will achieve 2006 earnings per share near the low end of the range as these trade measures will have an impact resulting in a potential decrease in our earnings per share approximating 4 cents to 5 cents. This impact will be weighted to the back half of the year due to inventory turnover and the progressive duty rate increases announced by the European Commission.
“Building upon the foundation of our growing European businesses, we will take steps to limit the impact of the provisional trade measures and will continue to invest in our brands and deliver high-value, innovative products to our European retail partners. We expect to provide additional information on the effect of the EU trade measures in connection with our first quarter conference call, which is scheduled for the week of April 17, 2006.”
