UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Wolverine World Wide, Inc.

(Exact name of registrant as specified in its charter)

Delaware		001-06024		38-1185150
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

9341 Courtland Drive Rockford, Michigan		49351
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (616) 866-5500

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02 Results of Operations and Financial Condition.

On July 15, 2010, Wolverine World Wide, Inc. (the “Company”) issued a press release announcing its financial results for the Company’s second quarter of 2010, attached as Exhibit 99.1 to this Form 8-K (the “8-K”), which is here incorporated by reference. This 8-K and Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits:

	99.1			Press Release dated July 15, 2010. This Exhibit shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EXHIBIT INDEX

Exhibit Number				Document
	99.1			Wolverine World Wide, Inc. Press Release dated July 15, 2010.

Exhibit 99.1

		Wolverine World Wide, Inc. 9341 Courtland Drive Rockford, MI 49351 Phone (616)866-5500; Fax (616)866-0257 FOR IMMEDIATE RELEASE CONTACT: Don Grimes (616) 863-4404

WOLVERINE WORLD WIDE, INC. ANNOUNCES RECORD EARNINGS PER SHARE FOR SECOND QUARTER 2010, INCREASES FULL YEAR REVENUE AND EARNINGS GUIDANCE

Adjusted Diluted EPS Grows 44.4% to $0.39

Rockford, Michigan, July 15, 2010 — Wolverine World Wide, Inc. (NYSE: WWW) today reported strong results for the second quarter ended June 19, 2010, including its second consecutive quarter of record earnings per share.

Second quarter reported revenue was $258.2 million, an increase of 4.8% versus the prior year. Continued impressive organic growth was partially offset by the delay into the subsequent quarter of a significant shipment to a third party distributor and, as expected, by lower closeout sales — the latter of which had a beneficial impact on gross margin in the quarter. Foreign exchange had minimal impact on reported revenue in the quarter.

Excluding $2.7 million of charges in the quarter related to the Company’s now fully-implemented strategic restructuring plan, diluted earnings were a record $0.39 per share, compared to 2009 adjusted diluted earnings of $0.27 per share, an increase of 44.4%. Reported diluted earnings in the quarter were $0.35 per share compared to $0.16 per share in the second quarter of 2009.

“The momentum in our business this year continued into the second quarter with very solid growth in both revenue and earnings,” stated Blake W. Krueger, the Company’s Chairman and Chief Executive Officer. “Our strong financial results were well balanced across our portfolio, with all four major branded operating groups contributing to the outstanding earnings performance. Our retail and eCommerce businesses also delivered impressive results. The Company’s exceptional year-to-date earnings performance is a clear testament to the power of our global business model.”

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Q2 2010		page 2

Don Grimes, the Company’s Chief Financial Officer, commented, “The Company remains focused on meeting the performance needs and style demands of our consumers, while continually striving to increase market share across the product categories in which our brands compete. We believe the quarter’s excellent results underscore the Company’s focus on rewarding our investors with an appropriate balance between near-term earnings growth and long-term investments for the future.”

Highlights for the quarter:

•

Adjusted for restructuring and related charges in both years, gross margin in the quarter expanded significantly to a record 40.3%, compared to prior year gross margin of 37.8%, driven by a lower percentage of closeout sales, lower product costs and benefits from year-over-year selling price increases. Reported gross margin in the quarter was 40.2% versus 37.3% for the second quarter 2009.

•

Adjusted for restructuring and related charges in both years, operating expenses in the quarter were $76.7 million compared to prior year operating expenses of $72.8 million, an increase of 5.4%. The increase was driven, in part, by double digit growth in advertising and marketing spend and incremental investments in selling infrastructure designed to fuel future growth. Reported operating expenses in the quarter were $79.0 million versus $79.7 million for the second quarter 2009.

•

Accounts receivable at the end of the quarter were up only 0.2% versus the quarter’s mid-single digit revenue increase. Days sales outstanding at quarter end decreased versus the prior year. Inventory at the end of the quarter was down $12.9 million, or 7.0%, compared to the prior year.

•

The Company repurchased approximately 753,000 of its own shares in the quarter for an aggregate cost of $22.6 million. Year to date, the Company has repurchased approximately 1.6 million shares for a total cost of $47.1 million. The Company has a solid balance sheet, with no significant debt, no borrowings against its recently-announced new $150 million revolving credit facility and $110.1 million of cash and cash equivalents at the end of the second quarter.

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Q2 2010		page 3

Due to the strong year-to-date revenue performance across the portfolio and continued solid order trends, the Company is increasing its full-year revenue estimate to a range of $1.190 billion to $1.220 billion, representing growth of 8.1% to 10.8% versus the prior year. The Company is also increasing its full-year earnings outlook, excluding restructuring and related charges of $0.06 per share, to a range of $1.98 to $2.04 per share. This range represents growth of 11.9% to 15.3% versus the prior year’s adjusted diluted earnings per share of $1.77. Reported earnings per diluted share are anticipated in the range of $1.92 to $1.98.

Krueger continued, “The Company is off to an excellent start this year. Our increased 2010 revenue and earnings guidance reflects the strength and momentum of our lifestyle brands in the global marketplace. Product innovation and compelling marketing across our portfolio are driving success at retail, as consumers have embraced our new product offerings. We remain committed to meeting, and exceeding, the wants and needs of our consumers while also delivering superior financial returns to our shareholders.”

The Company will host a conference call at 8:30 a.m. EDT today to discuss these results and current business trends. To listen to the call at the Company’s website, go to www.wolverineworldwide.com, click on “Investors” in the navigation bar, and then click on “Webcast” from the top navigation bar of the “Investors” page. To listen to the webcast, your computer must have Windows Media Player, which can be downloaded for free at www.wolverineworldwide.com. In addition, the conference call can be heard at www.streetevents.com. A replay of the call will be available at the Company’s website through July 29, 2010.

With a commitment to service and product excellence, Wolverine World Wide, Inc. is one of the world’s leading marketers of branded casual, active lifestyle, work, outdoor sport and uniform footwear and apparel. The Company’s portfolio of highly recognized brands includes: Bates^®, Chaco^®, Cushe^™, Hush Puppies^®, HYTEST^®, Merrell^®, Sebago^® Soft Style^® and Wolverine^®. The Company also is the exclusive footwear licensee of popular brands including CAT^®, Harley-Davidson^® and Patagonia^®. The Company’s products are carried by leading retailers in the U.S. and globally in 180 countries and territories. For additional information, please visit our website, www.wolverineworldwide.com.

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Q2 2010		page 4

This press release contains forward-looking statements. In addition, words such as “estimates,” “anticipates”, “expects,” “intends,” “should,” “will,” variations of such words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions (“Risk Factors”) that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such forward-looking statements. Current uncertainty in global economic conditions makes it particularly difficult to predict product demand and other related matters and makes it more likely that the Company’s actual results could differ materially from expectations. Risk Factors include, among others: the Company’s ability to successfully develop brands and businesses; changes in duty structures in countries of import and export including anti-dumping measures in Europe and other countries; trade defense actions by countries; the Company’s ability to implement and recognize benefits from tax planning strategies; changes in consumer preferences or spending patterns; cancellation of orders for future delivery; changes in planned customer demand, re-orders or at-once orders; the availability and pricing of foreign footwear factory capacity; reliance on foreign sourcing; regulatory or other changes affecting the supply of materials used in manufacturing; the availability of power, labor and resources in key foreign sourcing countries, including China; the impact of competition and pricing; the impact of changes in the value of foreign currencies and the relative value to the U.S. Dollar; the development of new initiatives; the development of apparel; retail buying patterns; consolidation in the retail sector; changes in economic and market conditions; acts and effects of war and terrorism; weather; and additional factors discussed in the Company’s reports filed with the Securities and Exchange Commission and exhibits thereto. Other Risk Factors exist, and new Risk Factors emerge from time to time that may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Furthermore, the Company undertakes no obligation to update, amend or clarify forward-looking statements.

# # #

WOLVERINE WORLD WIDE, INC.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
($000s, except per share data)

		12 Weeks Ended								24 Weeks Ended
		June 19,				June 20,				June 19,				June 20,
		2010				2009				2010				2009
Revenue		$	258,199			$	246,438			$	543,096			$	501,762
Cost of products sold			154,093				153,380				320,420				303,441
Restructuring and related costs			425				1,018				1,406				3,338
Gross profit			103,681				92,040				221,270				194,983
Gross margin			40.2	%			37.3	%			40.7	%			38.9	%
Selling, general and administrative expenses			76,720				72,823				155,260				148,143
Restructuring and related costs			2,311				6,901				2,828				19,039
Operating expenses			79,031				79,724				158,088				167,182
Operating profit			24,650				12,316				63,182				27,801
Operating margin			9.5	%			5.0	%			11.6	%			5.5	%
Interest (income) expense, net			(4	)			119				85				208
Other expense, net			395				520				165				412
			391				639				250				620
Earnings before income taxes			24,259				11,677				62,932				27,181
Income taxes			7,037				3,771				18,251				8,780
Net earnings		$	17,222			$	7,906			$	44,681			$	18,401
Diluted earnings per share		$	0.35			$	0.16			$	0.89			$	0.37

CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
($000s)

		June 19,				June 20,
		2010				2009
ASSETS:
Cash & cash equivalents		$	110,120			$	79,171
Receivables			183,221				182,881
Inventories			170,773				183,661
Other current assets			19,801				23,253
Total current assets			483,915				468,966
Property, plant & equipment, net			70,555				77,998
Other assets			130,043				120,798
Total Assets		$	684,513			$	667,762
LIABILITIES & EQUITY:
Current maturities on long-term debt		$	492			$	549
Revolving credit agreement			—				34,800
Accounts payable and other accrued liabilities			117,365				116,179
Total current liabilities			117,857				151,528
Long-term debt			492				1,094
Other non-current liabilities			88,053				72,689
Stockholders’ equity			478,111				442,451
Total Liabilities & Equity		$	684,513			$	667,762

WOLVERINE WORLD WIDE, INC.
REVENUE BY OPERATING GROUP
(Unaudited)
($000s)

		12 Weeks Ended
		June 19, 2010								June 20, 2009								Change
		Revenue				% of Total				Revenue				% of Total				$				%
Outdoor Group		$	97,857				37.9	%		$	92,865				37.7	%		$	4,992				5.4	%
Wolverine Footwear Group			54,855				21.2	%			49,711				20.2	%			5,144				10.3	%
Heritage Brands Group			44,327				17.2	%			45,050				18.3	%			(723	)			-1.6	%
Hush Puppies Group			25,588				9.9	%			27,069				11.0	%			(1,481	)			-5.5	%
Other			2,520				1.0	%			3,444				1.3	%			(924	)			-26.8	%
Total branded footwear, apparel and licensing revenue			225,147				87.2	%			218,139				88.5	%			7,008				3.2	%
Other business units			33,052				12.8	%			28,299				11.5	%			4,753				16.8	%
Total Revenue		$	258,199				100.0	%		$	246,438				100.0	%		$	11,761				4.8	%

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
($000s)

		24 Weeks Ended
		June 19,				June 20,
		2010				2009
OPERATING ACTIVITIES:
Net earnings		$	44,681			$	18,401
Adjustments necessary to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization			7,854				7,275
Deferred income taxes			(649	)			2
Stock-based compensation expense			4,237				4,033
Pension			7,517				7,224
Restructuring and other transition costs			4,234				22,378
Cash payments related to restructuring			(6,912	)			(11,662	)
Other			8,327				(9,322	)
Changes in operating assets and liabilities			(58,956	)			3,617
Net cash provided by operating activities			10,333				41,946
INVESTING ACTIVITIES:
Business acquisitions			—				(7,954	)
Additions to property, plant and equipment			(5,102	)			(4,937	)
Other			(890	)			(1,063	)
Net cash used in investing activities			(5,992	)			(13,954	)
FINANCING ACTIVITIES:
Net borrowings under revolver			—				(24,700	)
Cash dividends paid			(10,799	)			(10,729	)
Purchase of common stock for treasury			(48,057	)			(6,195	)
Other			8,393				1,550
Net cash used in financing activities			(50,463	)			(40,074	)
Effect of foreign exchange rate changes			(4,197	)			1,751
Decrease in cash and cash equivalents			(50,319	)			(10,331	)
Cash and cash equivalents at beginning of year			160,439				89,502
Cash and cash equivalents at end of year		$	110,120			$	79,171

As required by the Securities and Exchange Commission Regulation G, the following tables contain information regarding the non-GAAP adjustments used by the Company in the presentation of its financial results:

WOLVERINE WORLD WIDE, INC.

RECONCILIATION OF REPORTED FINANCIAL RESULTS TO ADJUSTED FINANCIAL
RESULTS, EXCLUDING RESTRUCTURING AND RELATED COSTS*
(Unaudited)
($000s, except per share data)

		As Reported								As Adjusted
		12 Weeks Ended				Restructuring and				12 Weeks Ended
		June 19, 2010				Related Costs (a)				June 19, 2010
Gross profit		$	103,681			$	425			$	104,106
Gross margin			40.2	%							40.3	%
Operating expenses		$	79,031			$	(2,311	)		$	76,720
% of revenue			30.6	%							29.7	%
% change from prior year			-0.9	%							5.4	%
Diluted earnings per share		$	0.35			$	0.04			$	0.39
% change from prior year			118.8	%							44.4	%

		As Reported								As Adjusted
		12 Weeks Ended				Restructuring and				12 Weeks Ended
		June 20, 2009				Related Costs (a)				June 20, 2009
Gross profit		$	92,040			$	1,018			$	93,058
Gross margin			37.3	%							37.8	%
Operating expenses		$	79,724			$	(6,901	)		$	72,823
% of revenue			32.4	%							29.6	%
Diluted earnings per share		$	0.16			$	0.11			$	0.27

RECONCILIATION OF EPS GUIDANCE TO ADJUSTED EPS GUIDANCE, EXCLUDING
RESTRUCTURING AND RELATED COSTS*
(Unaudited)

Full-Year 2010

Full-Year 2010

Guidance

Restructuring and

Guidance

(GAAP Basis)

Related Costs (a)

As Adjusted

Diluted earnings per share

$

1.92 – $1.98

$

0.06

$

1.98 – $2.04