NYSE$KTB
Kontoor Brands Inc. · Q2 2020 earnings
Q2 2020 earnings · · Investor relations
Briefing
Kontoor Brands' Q2 2020 results were impacted by COVID-19, with revenue declining 43% year-over-year, but the company strengthened its liquidity position and paid down debt.
Kontoor Brands reported a 43% decrease in revenue to $349 million for Q2 2020, with a GAAP EPS of $(0.58) and an adjusted EPS of $(0.22). The company successfully managed short-term challenges related to COVID-19 while focusing on long-term growth and financial flexibility, including paying down $75 million in debt during the quarter.
- Reported revenue of $349 million, a 43% year-over-year decline.
- GAAP EPS was $(0.58), and adjusted EPS was $(0.22).
- Gross margin decreased 10 bps to 38.5 percent on a reported basis.
- Inventory declined by $105 million, or 20 percent, compared with the prior year.
Headline financials
Revenue & EPS history
Kontoor Brands · Revenue · Quarterly
$349M
Revenue by segment
Kontoor Brands · $338M total across 2 segments · Q2 2020
- Wrangler$252M-30.8%74.6%
- Lee$86M-58.4%25.4%
Forward guidance
Kontoor withdrew its 2020 guidance provided on March 5, 2020, and has not provided an updated outlook given the continued dynamic nature of the environment. The Company continues to take the necessary, proactive steps to accommodate a prolonged COVID-19 operating environment.
Tailwinds
- The Company continues to take the necessary, proactive steps to accommodate a prolonged COVID-19 operating environment.
- Revenue in the second half of 2020 should experience sequential year-over-year improvement
- Revenue is expected to benefit from new programs
- Revenue is expected to benefit from distribution gains
- Revenue is expected to benefit from the timing shift of shipments.
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 Q2 2020
+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
| Quarter | Report date | Reaction (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% |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro