Kontoor Brands Inc

Latest Results (27.12.2024):

Revenue Growth

Kontoor Brands Inc. reported a revenue of $670 million for the third quarter of 2024, marking a 2 percent increase compared to the same period in the previous year. This growth was primarily driven by an increase in global direct-to-consumer and U.S. wholesale sales, although it was partially offset by a decline in international wholesale revenue.

Profitability and Earnings

The company achieved a reported earnings per share (EPS) of $1.26, with an adjusted EPS of $1.37, reflecting a 12 percent increase compared to the prior year. The adjusted gross margin improved by 150 basis points to 45.0 percent, excluding the out-of-period duty charge, driven by lower product costs and supply chain efficiencies.

Inventory and Shareholder Returns

Kontoor Brands Inc. successfully reduced its inventory by 24 percent compared to the previous year, ending the quarter with $462 million in inventory. The company also repurchased $40 million worth of shares and declared a regular quarterly cash dividend of $0.52 per share, a 4 percent increase from the second quarter of 2024.

Balance Sheet and Liquidity

At the end of the third quarter, Kontoor Brands Inc. held $269 million in cash and cash equivalents, with $745 million in long-term debt. The company had no outstanding borrowings under its Revolving Credit Facility, with $494 million available for borrowing, demonstrating strong liquidity and financial flexibility.

Updated 2024 Outlook

Kontoor Brands Inc. raised its full-year 2024 financial outlook, now expecting revenue to reach $2.60 billion. The company anticipates an adjusted gross margin of 45.1 percent, driven by lower product costs and supply chain efficiencies. Adjusted operating income is projected to be $385 million, reflecting an 11 percent increase compared to the prior year.