Kontoor Brands, owner of denim giants Wrangler and Lee, reported a better-than-anticipated first quarter (ended March 30, 2024), prompting an upward revision of their full-year forecast.
Key Highlights:
- Revenue: $631 million, down 5% year-over-year but exceeding initial expectations.
- Operating profit: $84.43 million, reflecting a 11% decrease compared to the previous year.
- Profit: $59.51 million, a 10% decline from Q1 2023.
- Revised Forecast: Revenue between $2.57 billion and $2.63 billion for 2024, in line with the current year.
- Gross Margin: Expected to reach approximately 44.6%, exceeding prior projections.
Reasons for Optimism:
- Strong cash flow and improved gross margin despite revenue decline.
- Direct-to-consumer sales growth in key markets like Europe and America (excluding US).
- Company cites “better-than-expected” first-quarter results as the reason for raising annual guidance.
This positive performance signals Kontoor Brands’ resilience and strategic shift towards a more profitable future.
Source:Modaes
Image Credits: Kontoor
