Q2 2024 Kontoor Brands Inc Earnings Call Transcript
Key Points
- Kontoor Brands Inc (KTB) delivered second-quarter results above expectations, driven by market share gains, gross margin expansion, and strong earnings growth.
- Wrangler revenue grew by 1%, with growth in nearly every channel and region, and a 14% increase in the non-denim business.
- POS trends in the US accelerated through the second quarter, with a 4% increase in June, the strongest month year-to-date.
- The company raised its full-year gross margin, earnings, and cash flow guidance based on improving visibility and a stronger profit outlook.
- Kontoor Brands Inc (KTB) expects to generate over $350 million in cash from operations, reflecting significant capital allocation optionality.
- Lee's revenue decreased by 6% in the quarter, reflecting a decline in US wholesale and macro pressures in Europe and Asia.
- Retailers remain in a conservative posture with regard to inventory management, impacting the cadence of sell-in.
- The macro environment in Europe remains challenging, contributing to cautious retailer behavior.
- APAC revenue declined by 13%, with varied performance by channel and ongoing efforts to improve the quality and health of the retail network.
- The company faces an uncertain operating environment, which remains challenging and has been for the last five years.
Greetings and welcome to the Kontoor Brands second-quarter 2024 earnings conference call. (Operator instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Michael Karapetian, Vice President, Corporate Development, Enterprise Strategy and Investor Relations. Thank you. You may begin.
Thank you, operator, and welcome to Kontoor Brands second-quarter 2024 earnings conference call. Participants on today's call will make forward-looking statements. These statements are based on current expectations and are subject to uncertainties that could cause actual results to materially differ. These uncertainties are detailed in documents filed with the SEC.
We urge you to read our risk factors, cautionary language and other disclosures contained in those reports. Amounts referred to on today's call will be in constant currency unless otherwise noted, and often on an adjusted dollar basis,
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
