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Dec 30, 2023
Kontoor Brands Q4 2023 Earnings Report
Kontoor Brands reported a decrease in revenue but an increase in adjusted EPS, driven by gross margin expansion and effective cost management.
Key Takeaways
Kontoor Brands reported a revenue decrease of 8% to $670 million, impacted by retailer inventory management in the U.S. However, adjusted EPS increased by 54% to $1.35, driven by gross margin expansion and effective cost management. The company is implementing 'Project Jeanius' to further enhance operational efficiency and accelerate growth.
Revenue decreased by 8% to $670 million due to retailer inventory management in the U.S.
Adjusted EPS increased 54% to $1.35, driven by gross margin expansion.
Gross margin increased by 140 basis points to 42.2% on an adjusted basis.
The company repurchased $30 million of shares and declared a regular quarterly cash dividend of $0.50 per share.
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
Kontoor Brands expects revenue to be in the range of $2.57 billion to $2.63 billion, adjusted gross margin between 44.2% and 44.4%, and adjusted EPS in the range of $4.65 to $4.75 for full year 2024.
Positive Outlook
- Strong gross margin expansion
- Operating earnings growth
- Strong cash generation
- Best-in-class returns on capital
- Significant capital allocation optionality
Challenges Ahead
- Challenging operating environment over the near term
- Conservative retailer inventory management
- Continued challenging macroeconomic conditions
- First half revenue declining at a mid-single digit rate
- First quarter revenue decline of approximately 9 percent
Revenue & Expenses
Visualization of income flow from segment revenue to net income