Kontoor Brands Q2 2022 Earnings Report
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
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