Kontoor’s shares jump, despite flat sales
02/05/2024
However, a positive note is the fall in inventory, which declined 24%.
Revenue for the year is now expected to be in the range of $2.57 to $2.63 billion, representing a decrease of 1% to an increase of 1%.
Kontoor CEO Scott Baxter said: ““Our first quarter results were stronger than expected, driven by higher revenue, gross margin, and cash flow.
“We are pleased with another quarter of market share gains and the improvement we saw in 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.”
Financial sector observers at Seeking Alpha said on raising expectations, Kontoor’s shares jumped. “These results, coupled with Levi's results, underscores the timelessness of denim amplified by new manufacturing processes that make jeans more attractive to consumers looking for sustainable fashion,” it said. “Demand is also fuelled by the popularity of cowboy culture thanks to Beyoncé and Yellowstone, while the comfort of stretch denim makes jeans almost as comfortable as apparel marketed by Lululemon and Vuori."
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