Loading...
•
Dec 28, 2024
Kontoor Brands Q4 2024 Earnings Report
Kontoor Brands reported revenue growth and margin expansion in Q4 2024.
Key Takeaways
Kontoor Brands posted Q4 2024 revenue of $699 million, representing a 4% year-over-year increase. Wrangler revenue grew 9%, while Lee revenue declined 6%. The company achieved a gross margin of 43.7% and an operating income of $84 million. Adjusted EPS came in at $1.38, reflecting a 2% increase compared to the prior year.
Revenue grew 4% year-over-year to $699 million, driven by Wrangler brand strength.
Operating income increased to $84 million, with an adjusted operating margin of 14.5%.
Adjusted EPS rose to $1.38, a 2% year-over-year increase.
U.S. revenue increased 6%, while international revenue declined by 1%.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Kontoor Brands expects modest revenue growth in FY 2025, driven by market share expansion and category expansion.
Positive Outlook
- Revenue expected to be between $2.63 billion and $2.69 billion, up 1% to 3%.
- Adjusted operating income projected to increase 5% to 7%.
- Expected EPS between $5.20 and $5.30, reflecting a 6% to 8% increase.
- Cash from operations anticipated to exceed $300 million.
- Gross margin expected to expand by 20 to 40 basis points.
Challenges Ahead
- International revenue expected to face headwinds from currency exchange rates.
- Retail inventory management could impact sales in the near term.
- Consumer spending trends remain uncertain globally.
- Higher product costs could partially offset margin 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
Loading earnings performance data...
Loading earnings reaction data...