Merrell’s global sales grew by 18 percent in 2006, as compared to our estimate of $307 million for 2005, representing nearly one-third of the total turnover of Wolverine World Wide. However, while the brand is now available in over 100 countries, WWW’s management says the brand is still “underrepresented” in Europe, which generates only about 25 percent of its sales although it is growing there more than elsewhere. Merrell’s contribution to group earnings rose by more than 20 percent in 2006, indicating rising margins. Overall, the Wolverine group recorded a 12 percent increase in net income to $83,647,000 for last year on 7.6 percent higher sales of $1,141.9 million. Exceeding expectations, the operating margin improved to 10.8 percent. Orders are up by 10 percent (more in Shoe Intelligence).