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Jan 02, 2021
Kontoor Brands Q4 2020 Earnings Report
Reported revenue increased, driven by digital strength and international growth, with earnings per share also increasing significantly.
Key Takeaways
Kontoor Brands reported a 1% increase in revenue to $661 million and a 48% increase in reported EPS to $0.74 for the fourth quarter of 2020. Adjusted EPS increased 27% to $1.23. The company also announced the early termination of the covenant relief period in its amended credit facility due to improving fundamentals.
Q4 Reported EPS of $0.74 increased 48 percent compared to the prior year
Adjusted EPS of $1.23 increased 27 percent compared to the prior year
Reported Revenue of $661 million, increased 1 percent compared to the prior year
Reported Gross Margin increased 180 bps to 42.5 percent compared to the prior year
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company is providing its fiscal 2021 guidance, including revenue is expected to increase in the low-double digit range over 2020 levels and Adjusted EPS is expected to be in the range of $3.50 to $3.60.
Positive Outlook
- Revenue is expected to increase in the low-double digit range over 2020 levels
- Adjusted Gross Margin is expected to increase 150 to 200 basis points above the 41.2 percent achieved in 2020
- SG&A investments will continue to be made in our brands and capabilities
- Adjusted EPS is expected to be in the range of $3.50 to $3.60
- 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
- Revenue is expected to include a mid-single digit impact from the VF Outlet actions and India business model changes.
- SG&A investments are expected to be amplified in demand creation, Digital, and International expansion.
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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