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Jul 02, 2022
Kontoor Brands Q2 2022 Earnings Report
Kontoor Brands reported strong revenue and adjusted earnings growth, driven by strength in the U.S. market, despite macroeconomic challenges.
Key Takeaways
Kontoor Brands reported a 25% increase in revenue and a GAAP EPS of $1.09 for Q2 2022. The company is updating its full-year outlook to reflect retailer inventory rebalancing, the ongoing COVID-19 pandemic, and inflationary pressures.
Q2 2022 revenue increased 25 percent on a reported basis and 27 percent in constant currency compared to Q2 2021.
Q2 2022 GAAP EPS was $1.09 compared to Q2 2021 GAAP EPS of $0.40.
U.S. revenue increased 40 percent over last year, driven by strength in both the Wrangler and Lee brands.
The company repurchased $40 million in common stock during the second quarter.
Kontoor Brands
Kontoor Brands
Kontoor Brands Revenue by Segment
Kontoor Brands Revenue by Geographic Location
Revenue by Segment
Wrangler Revenue
CapyFin.comLee Revenue
CapyFin.comRevenue by Geographic Location
U.S. Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
The Company is taking a more conservative approach to its assumptions for the balance of the year and updating its 2022 outlook.
Positive Outlook
- Benefits from continued structural mix shifts to accretive channels such as Digital.
- Ongoing cost saving initiatives.
- Strategic pricing are anticipated to help offset these higher costs.
- Tighter expense control on non-strategic and discretionary items.
- Investments will continue to be made in the Company’s brands and capabilities, including demand creation, Digital, and International expansion.
Challenges Ahead
- Impacts from retailer inventory rebalancing.
- Ongoing COVID-19 pandemic.
- Inflation
- Other macroeconomic factors.
- Higher incremental inflationary pressures on input costs and adverse mix due to COVID lockdowns in China to weigh on gross margin.
Revenue & Expenses
Visualization of income flow from segment revenue to net income