Wolverine Reports Record Revenue

July 15, 2005
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ROCKFORD — Wolverine World Wide Inc. posted record revenue and net earnings for 2005’s second quarter, marking the 14th consecutive record quarter of both revenue and net earnings.

Second quarter revenue was $215.7 million, an 8.5 percent increase over second quarter 2004 revenue of $198.8 million. Earnings per share for the quarter increased 22 percent to 22 cents, compared with 18 cents for the second quarter of 2004.

For the first half of the 2005 fiscal year, revenue reached $460.9 million, which is an 8.8 percent 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 percent from 38 cents per share for the same period a year ago.

“Our strong performance in the second quarter of 2005 was highlighted by the Outdoor Group, with Merrell leading the way among out portfolio of brands,” said Timothy O’Donovan, 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.”

O’Donovan noted that the company’s branded operating groups — the Heritage Group, the Hush Puppies Co. and the Outdoor Group — all experienced double-digit revenue and earnings increases. He said the Wolverine Footwear Group did not see a revenue increase due to the impact of the planned reduction in Bates military shipments.

Wolverine grew in its international markets, particularly Europe, where its branded wholesale business increased 39 percent in the just-passed quarter.

O’Donovan said the first half of the year has been driven by strong consumer response to innovative products including Merrell Continuum, Wolverine MultiShox, CAT iTech and Hush Puppies sport fashion products.

Wolverine ended the quarter with a cash balance in excess of $74 million.      

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