Kontoor not immune to global Q1 upheavals
Kontoor Brands has reported that total revenues declined by 2% year on year to $667 million for the quarter ended April 1, 2023 (Q1).
The company, headquartered in Greensboro, North Carolina, has a denim-heavy brand portfolio that encompasses Wrangler, Lee and Rock & Republic.
President, chief executive and chairman of the board, Scott Baxter (pictured fourth from left), said Kontoor’s results were consistent with expectations.
Its brands continued to grow market share in the US, “where point of sale outpaced shipments” over the period, he said, although overall performance was dimmed somewhat by international markets.
US revenues were up 2% year on year, for example, bringing in $518 million, but this more positive result was foiled by a 14% drop in international revenues ($149 million), including a 36% reduction in the Chinese market. Kontoor attributed the continued drop-off in China to local wholesale disruptions, impacted by changes to the country’s covid-related policies in recent months. Europe also saw a 7% decrease versus the previous year.
Breaking out figures for Wrangler and Lee, the group reported an increase of 3% to $423 million for Wrangler compared to the same period in 2022, with the latter down 9% year on year, by contrast, achieving $241 million.
Other revenues, including but not limited to Rock & Republic, now sold on Amazon and via Walmart's e-commerce channels, saw 7% growth overall to reach a little over $3 million.
Image: Mr Baxter stands next to professional rodeo cowboy and artist Chance Hays, during a visit Mr Hays made to Kontoor’s headquarters in April to gift a series of paintings he created to mark Wrangler’s seventy-fifth anniversary in 2022. Credit: Kontoor Brands via Instagram.
