Get access to everything we publish when you sign up for Outside+.
ROCKFORD, Mich., March 23 — Wolverine World Wide, Inc. [WWW] today issued the following statement.
The European Commission today announced provisional trade measures on certain leather footwear imported into the European Union from China and Vietnam. The measures will be implemented in the form of additional duties effective April 7, 2006, and progressing through September 15, 2006, to rates of 19.4% and 16.8% on imports from China and Vietnam, respectively.
Commenting on the trade action, 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 $.04 to $.05. 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.”
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. The Company’s portfolio of highly recognized brands includes: Bates(R), Hush Puppies(R), HYTEST(R), Merrell(R), Sebago(R) and Wolverine(R). The Company also is the exclusive footwear licensee of popular brands including CAT(R), Harley-Davidson(R), Patagonia(R) and Stanley(R). The Company’s products are carried by leading retailers in the U.S. and globally in over 170 countries. For additional information, please visit our website, http://www.wolverineworldwide.com/ .
This press release contains forward-looking statements, including those relating to 2006 sales and earnings; the expected impact of European anti- dumping duties; the structure, scope and details of provisional and definitive trade measures relating to leather footwear imports into the EU from China and Vietnam; future brand investment; and the ability to limit the impact of dumping measures. In addition, words such as “estimates,” “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. Risk Factors include, among others: changes in duty structures in countries of import and export including definitive anti-dumping measures being considered in Europe with respect to leather footwear from China and Vietnam and safety footwear from China and India; 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; 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, including the Chinese Yuan, and the relative value to the U.S. Dollar; integration and operations of newly acquired and licensed businesses; the development of new initiatives in apparel; retail buying patterns; consolidation in the retail sector; changes in economic and market conditions; acts and effects of war and terrorism; the conclusion of the year-end audit by the independent auditors and any potential adjustments; 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.
CONTACT: Stephen L. Gulis Jr. of Wolverine World Wide, Inc.,
Web site: http://www.wolverineworldwide.com/