US' Kontoor Brands' revenue at $631 mn in Q1 FY24

In the US, revenue amounted to $492 million, down 5 per cent year-over-year (YoY), with wholesale revenue declining by 6 per cent. The growth in owned brick-and-mortar stores was overshadowed by reduced wholesale shipments due to tight inventory control by retailers. Internationally, revenue reached $139 million, reflecting a 7 per cent decrease, driven by declines in Europe and Asia, partially offset by growth in direct-to-consumer sales, the company said in a media release.

The Wrangler brand reported global revenue of $409 million, a 3 per cent decrease, while the Lee brand recorded $219 million in global revenue, down 9 per cent from the prior year.

Despite the revenue declines, Kontoor Brands saw an improvement in gross margin, which increased to 45.2 per cent, and an adjusted operating margin of 14.7 per cent, up 50 basis points compared to the previous year.

While reported operating income stood at $84 million, adjusted operating income reached $93 million, reflecting a 2 per cent decrease. Earnings per share (EPS) were reported at $1.05 on a reported basis and $1.16 on an adjusted basis, the release added.

“Our first quarter results were stronger than expected, driven by higher revenue, gross margin, and cash flow,” said Scott Baxter, president, chief executive officer and chair of Kontoor Brands. “We are pleased with another quarter of market share gains and the improvement we saw in POS and retailer inventories over the course of the first quarter. As a result of our strong start to the year and increased visibility into gross margin expansion, we are raising our full year earnings outlook.”

Fibre2Fashion News Desk (DP)