NYSE$KTB
Kontoor Brands Inc. · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
Kontoor Brands reported a decrease in revenue due to U.S. retailer inventory rebalancing and COVID-related lockdowns in China, but strategic pricing and expense controls helped offset inflationary pressures.
Kontoor Brands reported Q3 2022 results with revenue of $607 million, a 7% decrease year-over-year. Reported EPS was $0.90, and adjusted EPS was $1.11, compared to $1.07 and $1.28, respectively, in Q3 2021. The company is revising its 2022 outlook, expecting revenue to increase approximately 4% and adjusted EPS to be in the range of $4.35 to $4.40.
- Q3'22 revenue decreased 7 percent (5 percent in constant currency) compared to Q3'21, totaling $607 million.
- Reported EPS was $0.90, with adjusted EPS at $1.11, compared to Q3'21 reported EPS of $1.07 and adjusted EPS of $1.28.
- U.S. revenue decreased 8 percent due to retailer inventory rebalancing, while international revenue decreased 3 percent.
- The company now expects 2022 revenue to increase approximately 4 percent and adjusted EPS to be in the range of $4.35 to $4.40.
Headline financials
Revenue & EPS history
Kontoor Brands · Revenue · Quarterly
$607M
Revenue by segment
Kontoor Brands · $604M total across 2 segments · Q3 2022
- Wrangler$406M-3.8%67.2%
- Lee$198M-13.2%32.8%
Forward guidance
Kontoor Brands is revising its 2022 outlook due to retailer inventory rebalancing, inflation, lockdowns in China, and foreign currency impacts.
Tailwinds
- Revenue is expected to increase approximately 4 percent compared to 2021.
- Investments will continue to be made in the Company’s brands and capabilities, including demand creation, Digital, and international expansion.
- The company expects an effective tax rate of approximately 20 percent in 2022.
- Interest expense is expected to be in the range of $30 million to $35 million in 2022.
- Average shares outstanding in 2022 are expected to be approximately 57 million, excluding the impact of additional share repurchases.
Headwinds
- Gross margin is now expected to approximate 43.0 percent compared to adjusted gross margin of 44.6 percent achieved in 2021.
- Adjusted SG&A is expected to increase at a low single-digit rate compared to adjusted SG&A in 2021.
- Adjusted EPS is expected to be in the range of $4.35 to $4.40, compared to prior guidance of $4.40 to $4.50.
- Capital Expenditures are expected to be in the range of $30 million to $35 million.
- Challenging global macroeconomic conditions, particularly inflation, should continue to weigh on consumer discretionary spend, and ongoing inventory reduction actions will pressure near-term margins.
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 Q3 2022
+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% |
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