For the third quarter Kontoor Brands’ revenue fell by seven per cent. Revenue decreases were primarily driven by significant US retailer inventory rebalancing efforts in the quarter and the impacts of lockdowns in China.

US revenue was down eight per cent over last year. International revenue was down three per cent over the same period in the prior year. China decreased 24 per cent. Europe increased seven per cent.

Wrangler brand global revenue was down four per cent. Wrangler US revenue decreased five per cent compared to last year. Wrangler international revenue increased three per cent. Lee brand global revenue was down 13 per cent from the same period in the prior year. Lee US revenue decreased 19 per cent compared to last year. Lee international revenue decreased six per cent. Strength in Europe was offset by expected reductions in China due to the impact of Covid lockdowns.

Other global revenue of the company fell by 33 per cent compared to the same period in the prior year.Gross margin decreased to 43 per cent, a decrease of 90 basis points on a reported basis and 60 basis points on an adjusted basis compared to the third quarter 2021.

Kontoor Brands is a global lifestyle apparel company with a portfolio led by two of the world’s most iconic consumer brands Wrangler and Lee.