Kontoor Brands’ revenues are expected to increase at single digit percentage to reach approximately $2.7 billion in 2022. The company expects first half revenues to increase in the low teens range compared to the prior year. Kontoor Brands’ gross margin is expected to be consistent with adjusted gross margin of 44.6 percent achieved in 2021. Expected increases from continued structural mix shifts to accretive channels such as Digital and International, as well as benefits of strategic pricing, are anticipated to be offset by higher transitory expenses, including freight, in support of strong demand.

The company’s EPS is expected to be in the range of $4.65 to $4.75. Its capital expenditures are expected to be in the range of $35 million to $40 million, primarily to support manufacturing, distribution and information technology projects.

The company expects an effective tax rate of approximately 21 per cent. Its interest expense is expected to be approximately $35 million and average shares outstanding of approximately 59 million, excluding the impact of potential additional share repurchases.