NYSE$KTB

Kontoor Brands Inc. · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Kontoor Brands reported stronger-than-expected results, driven by higher revenue, gross margin, and cash flow.

Kontoor Brands reported a revenue of $631 million, a 5% decrease compared to the prior year. Adjusted EPS was $1.16, consistent with the prior year. The company is raising its full year earnings outlook due to a strong start to the year and increased visibility into gross margin expansion.

  • Revenue of $631 million decreased 5 percent compared to prior year.
  • Reported gross margin was 45.2 percent, with adjusted gross margin increasing 270 basis points to 45.7 percent compared to prior year.
  • Reported EPS was $1.05, while adjusted EPS of $1.16 was consistent with prior year.
  • Inventory decreased 24 percent compared to prior year.

Headline financials

Total Revenue

$631M

Previous: $667M-5.4%
EPS (adj)

$1.16

Previous: $1.16+0.0%
Capital Expenditures

-$4.49M

Previous: -$6.46M+30.5%
Free Cash Flow

$55M

Previous: $59.8M-8.1%
Net Income

$59.5M

Previous: $66.3M-10.2%
Operating Income

$84.4M

Previous: $94.9M-11.1%
Gross Profit

$285M

Previous: $287M-0.5%
Cash & Equivalents

$215M

Previous: $52.7M+308.3%
Total Assets

$1.66B

Previous: $1.64B+1.1%
Stock-Based Comp

$5.77M

Previous: $1M+475.6%

Revenue & EPS history

Kontoor Brands · Revenue · Quarterly

$631M

Q1 2024-5.4%vs Q1 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Kontoor Brands · $613M total across 3 segments · Q1 2026

  • Wrangler
    $436M
  • Helly Hansen
    $165M
  • Other
    $12M

Forward guidance

The Company’s updated 2024 outlook includes the following:

Tailwinds

  • Revenue is expected to be in the range of $2.57 to $2.63 billion, reflecting a decrease of 1 percent to an increase of 1 percent compared to the prior year, consistent with the prior outlook.
  • Adjusted gross margin is now expected to approximate 44.6 percent, representing an increase of 210 basis points compared to adjusted gross margin in the prior year, excluding the out-of-period duty expense.
  • Adjusted operating income is now expected to be in the range of $377 to $387 million, reflecting an increase of between 8 and 11 percent compared to adjusted operating income in the prior year, excluding the out-of-period duty expense.
  • Adjusted EPS is now expected to be in the range of $4.70 to $4.80 compared to the prior outlook of $4.65 to $4.75.
  • The Company now expects cash flow from operations to exceed $335 million driven by the combination of accelerated earnings growth and a continued normalization of inventory.

Headwinds

  • The Company continues to expect first half revenue to decline at a mid-single digit rate compared to the prior year, consistent with the prior outlook.
  • Adjusted SG&A is expected to increase at a low- to mid-single digit percentage compared to adjusted SG&A in the prior year, consistent with the prior outlook.
  • Full year 2024 EPS includes an approximate 5 percentage point headwind from a higher tax rate.
  • In the second quarter, the Company expects adjusted EPS of approximately $0.85.
  • The Company’s outlook does not yet reflect the anticipated impact of Project Jeanius.

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 2024

Historical avgQ1 2024

+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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