Kontoor to invest in digital, sustainability and talent

05/08/2021
Kontoor to invest in digital, sustainability and talent
Wrangler and Lee-owner Kontoor Brands has raised its guidance for the year after revenues for the second quarter were above expectations.

Revenues of $491 million were 41% higher than the second quarter last year (which was affected by store closures due to the pandemic), and were driven by digital sales, as well as the US wholesale business and improvements internationally.

It said revenue had been impacted by the timing of shipments and some gains were offset by the impacts VF Outlet store closures, discontinuing the sale of third-party branded merchandise, and the transition to a new licensed business model in India. 

Compared with adjusted revenue in the second quarter of 2019, reported revenue decreased 19%.

Kontoor CEO Scott Baxter said: “Kontoor’s strong second quarter results, which came in above our expectations, and our improving fundamentals give us confidence to raise full year guidance. 

“As discussed at our recent Investor Day, we expect to catalyze sustained, profitable growth across channels, categories and geographies, fuelled by investments in key enablers within talent, demand creation, digital and sustainability.”

For the full year, revenue is now expected to increase in the mid-teens range over 2020, to $2.39 billion to $2.42 billion, as compared to a low-teens range in the prior guidance.

Mr Baxter will discuss the results with investors today, August 5.