Wolverine World Wide Reports 24th Consecutive Record Quarter.ROCKFORD, Mich.--(BUSINESS WIRE)--Oct. 1, 1998--Wolverine World Wide, Inc. (NYSE NYSE See: New York Stock Exchange :WWW WWW or W3: see World Wide Web. (World Wide Web) The common host name for a Web server. The "www-dot" prefix on Web addresses is widely used to provide a recognizable way of identifying a Web site. ) continued to set the pace in global footwear Footwear consists of garments worn on the feet. It is worn for a variety of reasons, including protection against the environment, hygiene and adornment. Usually, socks and other hosiery are worn between the feet and the footwear, except for sandals and flip flops (thongs). with the announcement of its 24th consecutive quarter of record sales and earnings. Net earnings for the third quarter ended September 12, 1998, rose 18% to $10.8 million compared to $9.2 million for the comparable 1997 quarter. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the quarter were $0.25, a 19% increase above the $0.21 per share reported for last year's third quarter. Net earnings for the current nine months grew 24% to $26.4 million compared to $21.3 million for the same period last year. Year-to-date, earnings per share improved 24% to $0.61 per share from the $0.49 reported for the first nine months of 1997. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight and other operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the third quarter of 1998 increased 1.4% to $164.5 million, despite the planned downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing of the Hush Puppies Hush puppies may refer to:
"The Company performed well with all of our branded shoe and boot divisions achieving domestic sales increases for the third quarter, including a mid-single digit improvement in the U.S. Hush Puppies wholesale business," said Geoffrey B. Bloom bloom 1. the general appearance of the surface. In carcass meat it is the glistening, transparent effect and the gentle pink color that gives a good bloom to the carcass. It is the result of proper tissue hydration coupled with the correct proportions of fat, connective tissue and , Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "With the exception of the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. resizing of the Hush Puppies U.K. operation, all our branded footwear divisions also reported higher global sales, despite competing in the toughest footwear market within memory." Pointing out that marketing nine brands of footwear in 120 countries lessens the impact of regional fashion and economic trends, Bloom said the balanced sales growth in the domestic and international businesses enabled Wolverine World Wide Wolverine World Wide NYSE: WWW is a footwear manufacturer. They have their own brand, Wolverine Boots and Shoes, and also make footwear for other companies, such as Caterpillar and Harley-Davidson. Wolverine also makes shoes and boots for the military. to continue its tradition of deriving half of its income from overseas markets and half from the U.S. "Our Wolverine wolverine or glutton, largest member of the weasel family, Gulo gulo, found in the northern parts of North America and Eurasia, usually in high mountains near the timberline or in tundra. and Caterpillar caterpillar (kăt`əpĭl'ər, kăt`ər–), common name for the larva of a moth or butterfly. Caterpillars have distinct heads and are segmented and wormlike. footwear divisions posted double-digit sales gains for the quarter," Bloom said. "Excluding the impact of the U.K. resizing, the Hush Puppies Company reported higher sales. The brand continues to demonstrate its strong consumer appeal, as evidenced by its successful licensing programs that include anticipated 1998 sales of more than one million Hush Puppies bean bag bassets and the sale of more than one-half million Hush Puppies eyewear eye·wear n. 1. Eyeglasses, goggles, or other objects worn over the eyes. 2. Fashionable eyeglasses. units since the program's inception last year. "Offsetting these net gains were volume shortfalls in our slipper business, reflecting high carryover carryover n. in taxation accounting, using a tax year's deductions, business losses or credits to apply to the following year's tax return to reduce the tax liability. (See: carryback) inventories at retail, and lower volume in our Leather Division, which struggled for business during the quarter as split suede cowhide cow·hide n. 1. a. The hide of a cow. b. The leather made from this hide. 2. A strong heavy flexible whip, usually made of braided leather. tr.v. prices are at an eight-year low, or about half the price of our Wolverine performance pigskin," Bloom also said. Stephen L. Gulis, Jr., Wolverine World Wide CFO See Chief Financial Officer. , reported consolidated inventories grew 1.1% while year-to-date sales increased 8.5%. "We are pleased with our overall inventory management efforts. Current inventories include Merrell Footwear (which was acquired at the end of 1997) and the build-up build·up also build-up n. 1. The act or process of amassing or increasing: a military buildup; a buildup of tension during the strike. 2. of Harley-Davidson footwear in anticipation of shipments of this new brand in the fourth quarter," he added. "Consolidated gross margins improved during the third quarter to 31.4% from 29.5%, a 190 basis point improvement, due in part to the benefits derived from our 1997 manufacturing restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plans and improved sourcing from the Far East. These same plans have improved the Company's year-to-date gross margins by 160 basis points to 31.9% compared with 30.3% for the first nine months of 1997. "SG&A expenses as a percentage of sales were up marginally from the prior year to 22.1% for the first nine months, reflecting investment in major marketing and product development programs for the new Harley-Davidson, Merrell and global Coleman initiatives," he concluded. "Our branded domestic footwear order backlog is up mid-single digits, and we are beginning to see orders from several new product initiatives, including our introductory line of Harley-Davidson footwear for men and women, Wolverine Fusion rugged outdoor comfort technology, and Hush Puppies kidskin kid·skin n. Soft leather made from the skin of a young goat. Noun 1. kidskin - soft smooth leather from the hide of a young goat; "kid gloves" kid women's casuals. Even in this tough global retail environment, we are well positioned to deliver our sixth consecutive record year and should post results near the top of our industry for 1998," Bloom concluded. This press release contains certain statements and projections that may be considered forward looking by securities laws. These statements involve a number of risks and uncertainties including but not limited to economic, competitive, governmental and technological factors affecting the Company's operations, markets, product services and prices, and actual results may differ materially. Wolverine World Wide, Inc. manufactures and markets a wide variety of branded footwear and performance leathers. Major branded products of the Company include: Bates Bates , Katherine Lee 1859-1929. American educator and writer best known for her poem "America the Beautiful," written in 1893 and revised in 1904 and 1911. (R) uniform footwear; Caterpillar(R) footwear; Coleman(R) footwear; Harley-Davidson(R) footwear; Hush Puppies(R) shoes, slippers and accessories; Hush Puppies Homeware(TM) slippers; Hy-Test(R) work boots and shoes; Merrell(R) outdoor footwear; Sioux-Mox(R) moccasins; Tru-Stitch(R) slippers; Wimzees(R) footwear; Wolverine(R) work, sport and rugged outdoor footwear, apparel and accessories; Wolverine DuraShocks(R) SR comfort technology; Wolverine Fusion(TM); and Wolverine All Season Weather Leathers(TM). -0-
WOLVERINE WORLD WIDE, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
($000's, except share and per share data)
12 Weeks Ended 36 Weeks Ended
______________ ______________
Sept 12, Sept 6, Sept 12, Sept 6,
1998 1997 1998 1997
____ ____ ____ ____
Net sales and other operating
income $ 164,486 $ 162,246 $ 455,002 $ 419,336
Cost of products sold 112,766 114,336 309,653 292,220
_________ _________ _________ _________
Gross profit 51,720 47,910 145,349 127,116
Selling and administrative
expenses 33,324 31,468 100,384 90,807
_________ _________ _________ _________
Operating profit 18,396 16,442 44,965 36,309
Other expense 2,166 2,913 5,358 5,044
_________ _________ _________ _________
Earnings before income taxes 16,230 13,529 39,607 31,265
Income taxes 5,399 4,330 13,233 10,005
_________ _________ _________ _________
Net earnings $ 10,831 $ 9,199 $ 26,374 $ 21,260
_________ _________ _________ _________
_________ _________ _________ _________
Earnings per share
Basic $ .26 $ .22 $ .63 $ .51
_________ _________ _________ _________
_________ _________ _________ _________
Diluted $ .25 $ .21 $ .61 $ .49
_________ _________ _________ _________
_________ _________ _________ _________
Shares used for computing
earnings per share:
Basic 42,096,486 41,617,603 42,029,424 41,381,839
Diluted 43,346,374 43,569,020 43,581,795 43,474,576
CONDENSED BALANCE SHEET
($000's)
Sept 12, Sept 6, Sept 12, Sept 6,
1998 1997 1998 1997
____ ____ ____ ____
ASSETS: LIABILITIES & EQUITY:
Cash & securities $ 8,853 $ 5,825 Notes payable $ 7,896 $ 2,918
Receivables 159,100 128,965 Current maturities
on long-term debt 4,417 135
Inventories 177,534 175,585 Accounts payable
and other accrued
liabilities 47,018 59,877
Other current _______ _______
assets 10,381 14,318 Total current
_______ _______ liabilities 59,331 62,930
Total current
assets 355,868 324,693 Long-term debt 153,505 107,231
Plant & equipment,
net 104,320 77,945 Other noncurrent
liabilities 11,904 11,002
Other assets 60,881 38,824 Stockholders'
_______ _______ equity 296,329 260,299
_______ _______
Total Assets $521,069 $441,462 Liabilities &
________ ________ Equity $521,069 $441,462
________ ________ ________ ________
________ ________
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