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Mar 28, 2020
Kontoor Brands Q1 2020 Earnings Report
Kontoor Brands' Q1 2020 earnings were significantly impacted by COVID-19, with revenue declining by 22 percent, but digital sales increased 10 percent.
Key Takeaways
Kontoor Brands reported a 22% decrease in revenue to $504 million due to COVID-19 impacts, with a GAAP EPS of $(0.05) and adjusted EPS of $0.27. The company took actions to strengthen financial flexibility, including amending its credit facility and temporarily suspending dividends.
COVID-19 had a significant impact on Q1 2020 revenue and profit.
Q1 2020 reported revenue was $504 million.
Q1 2020 GAAP EPS was $(0.05), with adjusted EPS at $0.27.
Digital sales increased 10 percent, including a 41 percent increase in U.S. digital wholesale, despite wholesale revenue decline due to customer door closures.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Kontoor Brands withdrew its 2020 guidance due to the uncertainty and significant business impacts caused by COVID-19 but provided additional perspective and assumptions.
Positive Outlook
- Key retail partners remain well positioned to navigate this environment.
- New programs and distribution gains are expected for the second half of 2020.
- Iconic brands offer consumers a distinct value proposition.
- Cost savings efforts are in place.
- Scaled, agile supply chain positions Kontoor well in the marketplace.
Challenges Ahead
- Uncertainty of COVID-19 remains.
- Negative impacts on revenue, operating income, and EPS are anticipated to be most pronounced in the second quarter of 2020.
- Prolonged economic downturn is predicted.
- Company is not guiding on the impact of COVID-19 in the second half of 2020.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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