References to September 2020, December 2019 and September 2019 relate to the balance sheets as of September 26, 2020, December 28, 2019 and September 28, 2019, respectively. Management uses the above non-GAAP financial measures internally in its budgeting and review process and, in some cases, as a factor in determining compensation. Kontoor Brands is a purpose-led organization focused on leveraging its global platform, strategic sourcing model and best-in-class supply chain to drive brand growth and deliver long-term value for its stakeholders. Despite the decline, the company added that both the Europe and China businesses experienced a gradual recovery during the quarter, with continued sequential revenue improvements in both regions expected in the fourth quarter. (a) For the three months ended September 2020, restructuring (benefits) costs related to strategic actions taken by the Company, which included a $6.6 million gain on the sale of manufacturing assets and charges related to cost optimization business activities primarily related to the Company's VF Outlet™ business and COVID-19. Given the Company’s continued improving operational performance and strong cash flow generation, the Company today announced its Board of Directors has declared a regular quarterly cash dividend of $0.40 per share of its common stock. The company expects full-year adjusted EPS to be in the range of 2.25 dollars to 2.35 dollars. Net revenues $ 583,222 $ 638,138 (9)% $ 1,436,974 $ 1,896,228 (24)% Costs and operating expenses While management believes that these non-GAAP measures are useful in evaluating the business, this information should be considered supplemental in nature and should be viewed in addition to, and not as an alternate for, reported results under GAAP. As of September 2020, the Company had $125 million of outstanding borrowings under the Revolving Credit Facility and $368 million available for borrowing against this facility. Compared with 2018 adjusted revenue, 2019 revenue declined 6 percent to 2.52 billion dollars. KONTOOR BRANDS, INC. Condensed Consolidated and Combined Statements of Operations (Unaudited) Three Months Ended. Constant Currency - This release refers to “reported” amounts in accordance with GAAP, which include translation and transactional impacts from changes in foreign currency exchange rates. Adjusted EBITDA margin increased 470 basis points to 18.8 percent of revenue. Kontoor, which belongs to the Zacks Textile - Apparel industry, posted revenues of $583.22 million for the quarter ended September 2020, surpassing the Zacks Consensus Estimate by 7.42%. International revenue was $128 million, down 30 percent on a reported basis and down 31 percent in constant currency, primarily driven by COVID-19 impacts. Total net revenues $ 583,222 $ (1,907) $ 581,315. Kontoor Brands (KTB) Q3 Earnings and Revenues Top Estimates Tight expense control and restructuring benefits helped offset fixed cost de-leverage due to revenue declines. During the third quarter, the company’s U.S. revenue was 455 million dollars, flat year-over-year on a reported basis, led by U.S. digital wholesale increase of 68 percent and U.S. owned.com increase of 43 percent, as well as new business development wins and the previously mentioned timing shift. “Our strategic actions delivered strong results in the quarter and are enhancing the Kontoor operating model focused on more profitable and sustainable long-term growth,” said Scott Baxter, President and Chief Executive Officer, Kontoor Brands. Kontoor Brands. Revenue is the top line item on an income statement from which all costs and expenses are subtracted to arrive at net income. The conference will be broadcast live via the Internet, accessible at https://www.kontoorbrands.com/investors. Kontoor Brands also operates the VF Outlet chain of factory outlet stores. Wrangler brand global revenue decreased to 347 million dollars, a 6 percent decline on a reported and constant currency basis. Terms of Use. ... Revenue, which was $2.8 billion in 2018, fell to $2.5 billion last year. While management believes that these non-GAAP measures are useful in evaluating the business, this information should be considered supplemental in nature and should be viewed in addition to, and not as an alternate for, reported results under GAAP. Third Quarter 2020 Income Statement Review. State of Alaska Department of Revenue lowered its position in Kontoor Brands, Inc. (NYSE:KTB) by 16.7% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. Net revenues $ 652,611 $ 726,233 (10)% $ 2,548,839 $ 2,763,998 (8)% Costs and operating expenses Statista. Non-GAAP Financial Information: The financial information above has been presented on a GAAP basis and on an adjusted basis. KONTOOR BRANDS, INC. Revenue can be defined as the amount of money a company receives from its customers in exchange for the sales of goods or services. Kontoor Brands Inc ... Lee brand global revenue declined 8% compared with the same quarter in 2019. Full-year 2020 Adjusted EPS is anticipated to be in the range of $2.25 to $2.35. This release refers to “adjusted” amounts and “constant currency” amounts, which are further described in the Non-GAAP Financial Measures section below. Despite the decline, both the Europe and China businesses experienced a gradual recovery during the quarter, with continued sequential revenue improvements in both regions expected in the fourth quarter. Many of the foregoing risks and uncertainties will continue to be exacerbated by the COVID-19 pandemic and any continued worsening of the global business and economic environment as a result. At the end of the third quarter of 2020, the Company achieved its lowest net debt level and strongest liquidity position since becoming an independent, publicly traded company in May 2019. “Investments in our brands, people and partnerships drove significant sequential top line improvement, while restructuring, quality-of-sales initiatives and accretive mix shifts supported solid gross margin increases. (1) On May 17, 2019, the Company entered into a $1.55 billion senior secured credit facility (the "Credit Agreement") under which it incurred $1.05 billion of indebtedness. Supplemental Financial Information Reconciliation of Adjusted Financial Measures - Quarter-to-Date (Non-GAAP) (Unaudited), Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures. Adjustments to reconcile net income to cash provided by operating activities: Property, plant and equipment expenditures, Collection of notes receivable from former parent, Cash (used) provided by investing activities, Borrowings under revolving credit facility, Repayments under revolving credit facility, Repayment of notes payable to former parent, Proceeds from issuance of Common Stock, net of shares withheld for taxes, Cash provided (used) by financing activities, Effect of foreign currency rate changes on cash and cash equivalents, Cash and cash equivalents – beginning of period, Cash and cash equivalents – end of period, Non-cash impairment of intangible asset (c), (Loss) profit related to other revenues (b). Kontoor Brands Inc. KTB, -2.67% shares rose 3.5% in Thursday premarket trading after the denim company reported second-quarter revenue that exceeded expectations. Net … Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve several risks and uncertainties. KONTOOR BRANDS, INC. Condensed Consolidated and Combined Statements of Income (Unaudited) Three Months Ended December % Twelve Months Ended December % (Dollars in thousands) 2019 2018 Change 2019 2018 Change. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. EBITDA margin on a reported basis increased to 15.7 percent of revenue and adjusted EBITDA margin increased 470 basis points to 18.8 percent of revenue. Kontoor Brands revenues drop by 9 percent, expects recovery in Q4. We use constant currency information to provide a framework to assess how our business performed excluding the effects of changes in the rates used to calculate foreign currency translation. See “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures" within the following pages. Adjusted operating margin increased 460 basis points to 17.6 percent of revenue, reflecting the benefits of gross margin improvements and tight expense control, which more than offset the significant impacts of COVID-19. March 11, 2020. On an adjusted basis, gross margin increased 240 basis points to 43.3 percent of revenue. International revenue was 128 million dollars, down 30 percent on a reported basis and down 31 percent in constant currency, primarily driven by Covid-19 impacts. While the impacts from the COVID-19 pandemic and macroeconomic factors remain uncertain, the Company is providing full-year 2020 Adjusted EPS guidance and additional perspective on its fourth quarter outlook, including the following: Kontoor Brands will host its third quarter 2020 conference call beginning at 8 a.m. Eastern Time today, October 29, 2020. In addition, these non-GAAP measures may be different from similarly titled measures used by other companies. Wrangler U.S. revenue increased 2 percent, driven by increases in digital, strength in the Western business and the timing shift into the third quarter. Kontoor Brands is a global lifestyle apparel company, with a portfolio of some of the world's most iconic denim brands: Wrangler® and Lee®. In addition, these non-GAAP measures may be different from similarly titled measures used by other companies. Wrangler® U.S. revenue increased 2 percent, driven by increases in Digital, strength in the Western business and the previously mentioned timing shift into the third quarter. Wrangler® brand global revenue decreased to $347 million, a 6 percent decline on a reported and constant currency basis. Lee® brand global revenue decreased to $214 million, down 8 percent on a reported and constant currency basis, driven primarily by COVID-19 impacts. We design, manufacture and distribute superior high-quality products that look good and fit right, giving people around the world the freedom and confidence to express themselves. This page provides a brief financial summary of Kontoor Brands Inc as well as the most significant critical numbers from each of its financial ... KontoorBrands Inc revenues decreased 24% to $1.44B. Fourth quarter adjusted SG&A is expected to increase year-over-year, driven by strategic decisions to amplify investments in demand creation and DTC in support of both the fourth quarter and long-term revenue. View source version on businesswire.com: https://www.businesswire.com/news/home/20201029005311/en/, Investors: Eric Tracy, (336) 332-5205 Senior Director, Investor Relations Eric.Tracy@kontoorbrands.com, Media: Vanessa McCutchen, (336) 332-5612 Vice President, Corporate Communications Vanessa.McCutchen@kontoorbrands.com. Kontoor Brands is up nearly 60% since its IPO lows just three months ago. (b) Other adjustments have been made for the three months ended September 2020 and September 2019 to remove the funding fees related to the accounts receivable sale arrangement, as they are treated as interest expense in the calculation of adjusted EBITDA for debt compliance purposes. Kontoor Brands is an American clothing company. Other risks for the Company include foreign currency fluctuations; the level of consumer demand for apparel; financial difficulty experienced by the retail industry; disruption to distribution systems; reliance on a small number of large customers; the financial strength of customers; fluctuations in the price, availability and quality of raw materials and contracted products; disruption and volatility in the global capital and credit markets and its impact on the Company’s ability to obtain short-term or long-term financing on favorable terms; restrictions on the Company’s business relating to its debt obligations; diseases, epidemics and public health-related concerns, such as the recent impact of the COVID-19 pandemic, which could continue to result in closed factories, reduced workforces, supply chain interruption, and reduced consumer traffic and purchasing; response to changing fashion trends, evolving consumer preferences and changing patterns of consumer behavior, intense industry competition, including from online retailers, and manufacturing and product innovation; changes to trade policy, including tariff and import/export regulations; increasing pressure on margins; ability to implement its business strategy; ability to grow its international and direct-to-consumer businesses; the Company's and its vendors’ ability to maintain the strength and security of information technology systems; the risk that facilities and systems and those of third-party service providers may be vulnerable to and unable to anticipate or detect data security breaches and data or financial loss; ability to properly collect, use, manage and secure consumer and employee data; stability of manufacturing facilities and foreign suppliers; continued use by suppliers of ethical business practices; ability to accurately forecast demand for products; continuity of members of management; ability to protect trademarks and other intellectual property rights; possible goodwill and other asset impairment; operational difficulties and additional expenses related to the Company’s design and implementation of an enterprise resource planning software system; maintenance by licensees and distributors of the value of the Company’s brands; ability to execute and integrate acquisitions; changes in tax laws and liabilities; volatility in the price and trading volume of the Company’s common stock; failure to declare future cash dividends; the impact of climate change and related legislative and regulatory responses; legal, regulatory, political and economic risks; the risk of economic uncertainty associated with the recent exit of the United Kingdom from the European Union ("Brexit") or any other similar referendums that may be held; and unseasonal or severe weather conditions. (2) As of September 2020, Term Loan A and Term Loan B had remaining outstanding principal balances of $700.0 million and $223.0 million, respectively, and are recorded net of unamortized original issue discount and deferred financing costs. The cash dividend will be payable on December 18, 2020, to shareholders of record at the close of business on December 10, 2020. Net Debt - This release refers to “net debt” which represents total long-term debt, including current portion, less cash and equivalents. Adjusted gross margin is anticipated to be above the 40.9 percent achieved in the prior year, reflecting continued benefits from ongoing restructuring and quality-of-sales initiatives, as well as higher anticipated growth in more accretive channels such as digital and improving mix within international. 22,170. Find the latest Revenue (Quarterly) Yoy Growth for Kontoor Brands, Inc. (KTB) Kontoor Brands Inc. KTB, +0.10% stock slipped 2.3% in Thursday premarket trading after the denim company reported a third-quarter revenue miss. Find the latest Revenue & EPS data for Kontoor Brands, Inc. Common Stock (KTB) at Nasdaq.com. Please enable JavaScript in your web browser. For the three months ended September 2020 and September 2019, separation costs related to the spin-off from VF Corporation and establishment of Kontoor as a separate public company, which for the 2020 period primarily included costs associated with the ongoing implementation of the Company's global ERP system and information technology infrastructure. While management believes that these non-GAAP measures are useful in evaluating the business, this information should be viewed in addition to, and not as an alternate for, reported results under GAAP. “Our accomplishments during the third quarter are a direct reflection of our colleagues’ incredible efforts, and I want to thank them for their tremendous contributions throughout these dynamic times,” added Baxter. Earnings per share was $1.05 on a reported basis compared with $0.25 in the prior year. Kontoor Brands, Inc. (NYSE: KTB), a global lifestyle apparel company, ... Lee® brand global revenue decreased to $183 million, a 24 percent decline on a reported and constant currency basis. Adjustments during 2020 primarily represent costs associated with the Company’s global ERP implementation and information technology infrastructure build-out. Do the numbers hold clues to what lies ahead for the stock? https://www.businesswire.com/news/home/20201029005311/en/. Additional information regarding adjusted amounts is provided in notes to the supplemental financial information included with this release. (b) We report an "Other" category in order to reconcile segment revenues and segment profit to the Company's operating results, but the Other category is not considered a reportable segment based on evaluation of aggregation criteria. The impacts of COVID-19 were in part offset by growth in Digital, with U.S. digital wholesale increasing 68 percent and U.S. owned.com increasing 43 percent, as well as new business development wins and the previously mentioned timing shift. September % (Dollars in thousands) 2020 2019 Change 2020 2019 Change. Adjusted gross margin in the fourth quarter of 2020 is anticipated to be above the 40.9 percent achieved in the prior year, reflecting continued benefits from ongoing restructuring and quality-of-sales initiatives, as well as higher anticipated growth in more accretive channels such as Digital and improving mix within international. Total reportable segment revenues. "Revenue growth of Kontoor Brands' Lee brand worldwide in fiscal year 2019, by region." 561,069 (1,924) 559,145. September % Nine Months Ended. Certain statements included in this release and attachments are "forward-looking statements" within the meaning of the federal securities laws. September 26, 2020, Balance Sheet and Liquidity Review. Given the company’s continued improving operational performance and strong cash flow generation, Kontoor Brands also announced that its board of directors has declared a regular quarterly cash dividend of 40 cents per share of its common stock payable on December 18, 2020, to shareholders of record at the close of business on December 10, 2020. September % (Dollars in thousands) 2020 2019 Change 2020 2019 Change. Kontoor Brands is a global lifestyle apparel company, with a portfolio of some of the world's most iconic denim brands: Wrangler®, Lee®, 15,000 employees globally and $2.5 billion in annual revenue. Basis of presentation for all financial tables within this release: The Company operates and reports using a 52/53 week fiscal year ending on the Saturday closest to December 31 each year. Selling, General & Administrative (SG&A) expenses were $175 million on a reported basis. At inception, this facility consisted of a five-year $750.0 million term loan A facility (“Term Loan A”), a seven-year $300.0 million term loan B facility (“Term Loan B”) and a five-year $500.0 million revolving credit facility (the “Revolving Credit Facility”) (collectively, the “Credit Facilities”) with the lenders and agents party thereto. Strong cash generation is expected to support continued aggressive debt paydown during the fourth quarter of 2020. To calculate foreign currency translation on a constant currency basis, operating results for the current year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period). Adjusted EBITDA was $109 million, increasing 22 percent from $90 million in the prior year. Condensed Consolidated and Combined Statements of Operations, Selling, general and administrative expenses. The Company continues to take the necessary, proactive steps to accommodate a prolonged COVID-19 operating environment. Summary of Select GAAP and Non-GAAP Measures. (3) Net debt at quarter-end is calculated as total long-term debt, including current portion, outstanding under the Credit Facilities less the Company's cash and equivalents balance. Sales of Wrangler® and Lee® branded products at VF Outlet™ stores are not included in Other and are reported in their respective segments. Adjusted earnings per share was $1.33 compared with $0.95 in the prior year. Lee brand global revenue decreased to 214 million dollars, down 8 percent on a reported and constant currency basis, while Lee U.S. revenue increased 10 percent, a result of new business development wins and increases in digital during the quarter. Amounts herein may not recalculate due to the use of unrounded numbers. Kontoor (KTB) delivered earnings and revenue surprises of 31.25% and 29.79%, respectively, for the quarter ended June 2020. Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this release include, but are not limited to: risks associated with the Company's spin-off from VF Corporation, including the risk of disruption to our business in connection with the spin-off and that the Company could lose revenue as a result of such disruption; the risk that the Company does not realize all of the expected benefits of the spin-off; the risk that the spin-off will not be tax-free for U.S. federal income tax purposes; the risk that there will be a loss of synergies from separating the businesses that could negatively impact the balance sheet, profit margins or earnings of the Company; the risk of significant costs to the Company to perform certain functions (currently being performed by VF Corporation for the Company on a transitional basis) following the transition period; and the risk associated with significant restrictions on the Company’s actions in order to avoid triggering tax-related liabilities. Supplemental Financial Information Additional Information about Liquidity (Non-GAAP) (Unaudited), Outstanding Borrowings under the Credit Facilities: (1), Total long-term debt, including current portion, Available borrowing capacity under the Revolving Credit Facility (4). KONTOOR BRANDS, INC. Condensed Consolidated and Combined Statements of Operations (Unaudited) Three Months Ended. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) on a reported basis was $91 million. Other global revenue declined 43 percent to $22 million on a reported and constant currency basis driven by COVID-19 impacts to the Company’s VF Outlet™ stores, as well as planned reductions in the sale of goods manufactured for third parties and the Rock & Republic® brand. Please enable JavaScript This website requires JavaScript to work correctly. 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