Mar 2, 2022
Kontoor Brands announces 2021 revenue increase of 18%
Mar 2, 2022
Greensboro, North Carolina-based denim group Kontoor Brands Inc. announced on Tuesday strong financial results for its fourth quarter and year ended January 1, 2022.
The company’s Q4 revenue totaled $681 million, up 3 percent. The revenue increase was primarily driven by strength in Own.com, as well as continued positive trends in the U.S. wholesale business and solid performance in international markets.
The group’s U.S. revenue for the quarter was $523 million, increasing 1 percent over the same period in the prior year. The jump was driven by growth in wholesale, including new business development wins, and strength again in Own.com, which increased 39 percent.
International revenue for the quarter rose 12 percent to $158 million. Compared to the same period in the prior year, China increased 13 percent on a reported basis and 9 percent in constant currency, while the European business increased 8 percent on a reported basis and 11 percent in constant currency.
Global Wrangler revenue fell 1 percent to $444 million, while the Lee brand global revenue jumped to $233 million, representing a 14 percent increase. Other global revenue declined to $5 million driven by impacts from the strategic actions related to VF Outlet operations.
Kontoor’s total net income for the quarter was $79 million. Diluted earnings per share were $0.75, compared to $0.74 in the same period in the prior year.
“In the quarter, we amplified strategic investments and delivered near-term results while continuing to set the foundation for greater long-term success. This execution was also a testament to our colleagues around the world, whose perseverance, collaboration and focus led our organization to new operational heights despite the ongoing dynamic macro environment,” said Scott Baxter, president, chief executive officer and chair of Kontoor Brands.
In 2021, Kontoor’s annual revenues was up 18 percent to $2.5 billion, over the same period in the prior year. According to the company, the increase was also driven by Own.com, the U.S. wholesale business and international markets.
Full-year revenues climbed 14% to $1.9 billion in the U.S. and 33% on the company’s international markets, where sales totaled $607 million. China increased 37 percent and the European business increased 33 percent.
Net income for the year reached $195.4 million or $3.31 a diluted share, up 188 percent from $67.9 million, or $1.17, in 2020.
Looking ahead, Kontoor expects to report a year-over-year increase at a high single-digit percentage over 2021 to approximately $2.7 billion.
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