Kontoor Brands ( (KTB) ) has released its Q3 earnings. Here is a breakdown of the information Kontoor Brands presented to its investors.
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Kontoor Brands, Inc., a global lifestyle apparel company specializing in iconic consumer brands such as Wrangler and Lee, designs, manufactures, and distributes high-quality apparel products. The company recently released its third-quarter 2024 earnings report, highlighting a modest revenue increase and an improved full-year financial outlook.
Kontoor Brands reported a revenue of $670 million for the third quarter of 2024, marking a 2% increase from the previous year. The company’s adjusted gross margin improved to 45.0%, and the adjusted earnings per share (EPS) rose by 12% to $1.37. The company also reduced its inventory by 24% and repurchased $40 million worth of shares, while increasing its quarterly dividend by 4% to $0.52 per share.
The financial performance was driven by a 5% revenue growth in the U.S., mainly due to robust sales in the wholesale and direct-to-consumer channels, despite a decline in international wholesale revenue. The Wrangler brand saw a 4% increase in global revenue, while the Lee brand experienced a 3% decrease. Overall, the company demonstrated effective cost management, leading to a higher operating income and a stronger balance sheet.
Looking ahead, Kontoor Brands has raised its full-year 2024 outlook, anticipating revenues of $2.60 billion and an adjusted EPS of $4.83. The company expects continued market share gains, gross margin expansion, and strong cash flow generation. Kontoor remains focused on executing its strategic initiatives, including the Jeanius transformation program, to sustain growth and deliver value to stakeholders in the coming years.
