Kontoor Brands Q2 2020 Earnings Report
Key Takeaways
Kontoor Brands reported a 43% decrease in revenue to $349 million for Q2 2020, with a GAAP EPS of $(0.58) and an adjusted EPS of $(0.22). The company successfully managed short-term challenges related to COVID-19 while focusing on long-term growth and financial flexibility, including paying down $75 million in debt during the quarter.
Reported revenue of $349 million, a 43% year-over-year decline.
GAAP EPS was $(0.58), and adjusted EPS was $(0.22).
Gross margin decreased 10 bps to 38.5 percent on a reported basis.
Inventory declined by $105 million, or 20 percent, compared with the prior year.
Kontoor Brands
Kontoor Brands
Kontoor Brands Revenue by Segment
Kontoor Brands Revenue by Geographic Location
Forward Guidance
Kontoor withdrew its 2020 guidance provided on March 5, 2020, and has not provided an updated outlook given the continued dynamic nature of the environment. The Company continues to take the necessary, proactive steps to accommodate a prolonged COVID-19 operating environment.
Positive Outlook
- The Company continues to take the necessary, proactive steps to accommodate a prolonged COVID-19 operating environment.
- Revenue in the second half of 2020 should experience sequential year-over-year improvement
- Revenue is expected to benefit from new programs
- Revenue is expected to benefit from distribution gains
- Revenue is expected to benefit from the timing shift of shipments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income