NYSE$KTB
Kontoor Brands Inc. · Q4 2019 earnings
Q4 2019 earnings · · Investor relations
Briefing
Kontoor Brands' Q4 2019 results were reported, showing revenue decline due to transformational changes, but adjusted EPS exceeded expectations.
Kontoor Brands reported a revenue decrease of 10% to $653 million in Q4 2019, impacted by strategic quality-of-sales initiatives and a major U.S. retailer bankruptcy. Despite the revenue decline, adjusted EPS was $0.97, and adjusted operating margin increased to 13.1%.
- GAAP EPS was $0.50, while adjusted EPS reached $0.97 for Q4 2019.
- Revenue decreased to $653 million, a 10% year-over-year decline.
- Adjusted operating margin increased 130 basis points to 13.1% of revenue.
- Adjusted EBITDA increased 130 basis points to 14.2% of revenue.
Headline financials
Revenue & EPS history
Kontoor Brands · Revenue · Quarterly
$653M
Revenue by segment
Kontoor Brands · $619M total across 2 segments · Q4 2019
- Wrangler$417M-6.1%67.4%
- Lee$202M-11.8%32.6%
Forward guidance
Kontoor Brands provided its outlook for the fiscal year ending January 2, 2021, excluding the impact of COVID-19. Revenue is expected to be largely consistent with full year 2019 adjusted revenue, with branded Wrangler® and Lee® revenue anticipated to increase low-single digits.
Tailwinds
- Revenue is expected to be largely consistent with full year 2019 adjusted revenue.
- Branded Wrangler® and Lee® revenue are anticipated to increase low-single digits.
- Gross margin is expected to be in the range of 41.0 percent to 41.5 percent.
- Adjusted EBITDA is expected to be in the range of $350 million to $360 million.
- The total reduction in long-term debt for 2020 is anticipated to be in excess of $125 million.
Headwinds
- Other non-strategic revenues are expected to decline double-digits.
- The negative impact of 2019 strategic business exits, quality-of-sales initiatives and lower revenue associated with non-strategic lines of business is expected to contribute up to 3 points of headwind to full year 2020 revenue.
- First half revenue is expected to decline.
- 2020 includes an additional five months of interest expense that impacts full year adjusted EPS by approximately $0.23 compared with 2019 adjusted EPS.
- Capital expenditures (including ERP) are expected to range between $55 million and $70 million.
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 Q4 2019
+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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