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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%.
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 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.
- Foreign currency impact expected to reduce revenue by approximately 1%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income