NYSE$KTB

Kontoor Brands Inc. · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Kontoor Brands' Q1 2021 results exceeded expectations with revenue growth across regions, channels, and categories, driven by strategic investments and structural margin gains.

Kontoor Brands reported strong first-quarter 2021 results, with revenue increasing 29 percent to $652 million and adjusted EPS of $1.43. The company raised its fiscal 2021 outlook, expecting revenue to increase in the low-teens range and adjusted EPS to be in the range of $3.70 to $3.80.

  • Reported EPS was $1.09, and adjusted EPS was $1.43.
  • Reported revenue increased 29 percent year-over-year to $652 million.
  • Gross margin increased 830 basis points to 46.1 percent compared to the prior year.
  • The company raised its fiscal 2021 guidance for adjusted EPS to $3.70 to $3.80.

Headline financials

Total Revenue

$652M

Previous: $504M+29.2%
EPS (adj)

$1.43

Previous: $0.27+429.6%
Capital Expenditures

-$1.99M

Previous: -$10.4M+80.9%
Free Cash Flow

$62.5M

Previous: -$13.1M+575.6%
Net Income

$64.5M

Previous: -$2.71M+2477.0%
Operating Income

$93.2M

Previous: -$164K+56914.6%
Gross Profit

$301M

Previous: $191M+57.6%
Cash & Equivalents

$230M

Previous: $479M-52.1%
Total Assets

$1.52B

Previous: $1.9B-20.1%

Revenue & EPS history

Kontoor Brands · Revenue · Quarterly

$652M

Q1 2021+29.2%vs Q1 2020
Beat estimate in 9 of 10 quarters(90%)
ActualEstimate

Revenue by segment

Kontoor Brands · $649M total across 2 segments · Q1 2021

  • Wrangler
    $399M+31.7%
  • Lee
    $250M+36.6%

Forward guidance

The Company is raising its 2021 Fiscal Outlook. Revenue is now expected to increase in the low-teens range over 2020. Adjusted EPS is now expected to be in the range of $3.70 to $3.80.

Tailwinds

  • Revenue is now expected to increase in the low-teens range over 2020.
  • Gross Margin is now expected to increase by 230 to 270 basis points.
  • SG&A investments will continue to be made in brands and capabilities.
  • Adjusted EPS is now expected to be in the range of $3.70 to $3.80.
  • Capital Expenditures are expected to be in the range of $40 million to $50 million.

Headwinds

  • Impacts from the COVID-19 pandemic and macroeconomic factors remain uncertain.
  • ERP implementation will have timing impacts on quarterly revenue and profitability.
  • Includes a mid-single digit impact from the VF Outlet actions and India business model change.
  • An effective tax rate of approximately 22 percent is expected for 2021.
  • Interest expense is expected to be approximately $40 million to $45 million in 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+1.3%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+4.6%

Avg return

30 days after

58%

19 / 33 earnings

Positive

+18.6%

Q4 2025

Best reaction

-17.3%

Q4 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.4%-1.9%+21.2%
Q4 2025+18.6%+17.7%+6.5%
Q3 2025-9.4%-10.8%-3.3%
Q2 2025+12.4%+24.0%+41.5%
Q1 2025+1.5%+8.0%+7.3%
Q4 2024-13.5%+0.5%-25.7%
Q3 2024+6.6%+10.7%+19.9%
Q2 2024-1.5%-2.2%+6.7%
Q1 2024+5.6%+9.0%+18.0%
Q4 2023-6.8%-7.8%-5.0%
Q3 2023+6.3%+9.7%+19.2%
Q2 2023+16.6%+16.3%+13.7%
Q1 2023-7.9%-9.8%-9.4%
Q4 2022+18.5%+21.7%+9.1%
Q3 2022+10.8%+9.6%+30.7%
Q2 2022+2.1%-1.0%-3.0%
Q1 2022+2.9%+0.0%-2.2%
Q4 2021-3.0%-12.7%-16.5%
Q3 2021+1.5%+5.4%-5.2%
Q2 2021-0.7%-2.0%-6.4%
Q1 2021+0.9%-0.7%-1.3%
Q3 2020+5.3%+14.4%+38.2%
Q2 2020-2.1%+4.0%+13.7%
Q1 2020-8.1%-20.8%+16.2%
Q4 2017-17.3%-18.0%-37.1%
Q4 2019-3.3%-6.6%-60.1%
Q3 2018+1.0%-0.3%+8.5%
Q3 2019-5.8%-5.7%+0.6%
Q2 2018-4.7%+0.8%+11.6%
Q2 2019+16.0%+9.1%+21.5%
Q1 2019+0.5%-4.6%+7.7%
Q4 2018+0.5%-4.6%+7.7%
Q1 2018+0.5%-4.6%+7.7%

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