For the fourth quarter Kontoor Brands’ revenue decreased 10 per cent. For the full year, revenue decreased eight per cent. Net income in the quarter fell 45 per cent. For the year, net income declined 63 per cent. For the quarter adjusted earnings before interest, taxes, depreciation and amortization (ebitda) was up one per cent. Gross margin increased 210 basis points to 40.7 per cent of revenue on a reported basis. For the year, gross margin decreased 90 basis points to 39.4 per cent on a reported basis, primarily due to higher distressed sales and manufacturing inefficiencies. For the year adjusted ebitda was down 12 per cent. Ebitda margin on a reported basis declined to 7.6 per cent of revenue. Adjusted ebitda margins decreased 90 basis points to 13.5 per cent.

Kontoor Brands, the parent of Wrangler and Lee, has undergone a transformation to improve operational performance, address internal and external factors, and set the stage for long-term profitable growth. Initiatives that focus on higher margin and faster growing lines of business, as well as the exit of select non-strategic lines of business and points of distribution, position the company for future success. While first half revenue is expected to decline, revenue is expected to grow in the second half.