Kontoor Brands, Inc. (NYSE: KTB), the global lifestyle apparel company known for its iconic brands Wrangler® and Lee®, reported Q3 2023 financial results. The quarter showcased robust revenue growth and profitability, exceeding expectations when excluding a duty charge. Their strategic brand investments drove growth in U.S. point-of-sale (POS) and market share in core U.S. wholesale, along with a strong quarter in Direct-to-Consumer (DTC).
An innovative exhibition named "News From The Future" involved students from Dutch art and fashion schools who participated in the "Classroom of the Future: the Stories Behind Cotton" program, emphasizing sustainability and bridging the MBO and HBO educational gap.
Q3 revenue reached $655 million, showing an 8% increase, with U.S. revenue at $506 million (a 12% increase) driven by strong U.S. wholesale and DTC, while international revenue was $149 million (a 4% decrease due to lower wholesale in China).
The Wrangler brand achieved global revenue of $445 million (9% increase), and Lee brand earned $208 million (5% increase). However, the gross margin decreased to 41.5% due to a duty charge and inventory management actions. Adjusted EPS is expected to be approximately $4.35 for 2023, with a focus on increasing cash generation.
