Kontoor Brands revenue up 25% in Q2
The group’s 2022 revenue is now expected to increase 6% compared to 2021, though this is lower than the prior guidance of increasing approximately 10%
Global lifestyle apparel company, Kontoor Brands, has seen revenue increase by 25% to $614m (£507m) in Q2, largely driven by strength in the U.S. in both its Digital and wholesale channels.
The group’s strongest brands, Wrangler and Lee, also reported a revenue increase of 19% and 14% respectively in H1 2022.
The group’s 2022 revenue is now expected to increase 6% compared to 2021, though this is lower than the prior guidance of increasing approximately 10%. Revenue in the second half of 2022 is also expected to remain relatively flat compared to 2021.
The updated outlook is said to exclude an estimated EPS charge of $0.25 (£0.21) for restructuring associated with actions to enhance growth by accelerating the transformation of the company’s global operating model, including the relocation of its European headquarters.
Scott Baxter, president, CEO and chair of Kontoor Brands, said: “In a highly dynamic macroeconomic environment, supply chain challenges and inflationary pressures accelerated during the quarter. While these factors tempered our top line a bit sooner than expected, we were still able to deliver strong 27% revenue growth and 57% adjusted earnings growth, on a constant currency basis, in line with our EPS guidance.
“I am proud of our teams’ agility to navigate rapid changes, outperform on a relative basis in our largest market, and deliver on our second quarter profitability goals. Looking forward, we anticipate that macro conditions will remain challenging, particularly as retailer inventories are rebalanced and inflation weighs on overall consumer demand.”
He added: “However, we are confident that our strategies, continued brand momentum and efficient operating model will fuel further competitive separation over time. Kontoor-specific drivers in accelerating diversified growth, when coupled with our proven strong cash generation, should allow us to continue to deliver industry-leading TSR.”