Kontoor Brands Q1 2021 Earnings Report
Key Takeaways
Kontoor Brands reported strong first-quarter 2021 results, with revenue increasing 29 percent to $652 million and adjusted EPS of $1.43. The company raised its fiscal 2021 outlook, expecting revenue to increase in the low-teens range and adjusted EPS to be in the range of $3.70 to $3.80.
Reported EPS was $1.09, and adjusted EPS was $1.43.
Reported revenue increased 29 percent year-over-year to $652 million.
Gross margin increased 830 basis points to 46.1 percent compared to the prior year.
The company raised its fiscal 2021 guidance for adjusted EPS to $3.70 to $3.80.
Kontoor Brands
Kontoor Brands
Kontoor Brands Revenue by Segment
Kontoor Brands Revenue by Geographic Location
Forward Guidance
The Company is raising its 2021 Fiscal Outlook. Revenue is now expected to increase in the low-teens range over 2020. Adjusted EPS is now expected to be in the range of $3.70 to $3.80.
Positive Outlook
- Revenue is now expected to increase in the low-teens range over 2020.
- Gross Margin is now expected to increase by 230 to 270 basis points.
- SG&A investments will continue to be made in brands and capabilities.
- Adjusted EPS is now expected to be in the range of $3.70 to $3.80.
- Capital Expenditures are expected to be in the range of $40 million to $50 million.
Challenges Ahead
- Impacts from the COVID-19 pandemic and macroeconomic factors remain uncertain.
- ERP implementation will have timing impacts on quarterly revenue and profitability.
- Includes a mid-single digit impact from the VF Outlet actions and India business model change.
- An effective tax rate of approximately 22 percent is expected for 2021.
- Interest expense is expected to be approximately $40 million to $45 million in 2021.