附录99.1
kontoor brands公布2024年第三季度业绩；调高全年展望
2024年第三季度亮点
•67000万美元的营业收入比去年同期增加了2%
•报告的毛利率为44.7％。调整后的毛利率为45.0％，较去年同期以报告基础增加了150个基点，并排除了当期的超时征费。
•报告的每股收益为1.26美元。相较于去年同期，调整后的每股收益为1.37美元，在报告基础上增加12%，不包括当期的因务外负担而产生的费用。
•库存比去年减少了24%
•该公司回购了4000万美元的股份
•如先前宣布，公司董事会宣布每股派发普通季度现金股息0.52美元，较Q2’24增加4%
2024年全年财务展望更新
•预计目前营业收入将为26亿美元（之前预期为2.57至26.3亿美元）
•调整后的毛利率预期将为45.1％（先前预期为44.8％），较去年同期调整基础上增加260个基点，该期间不包括超出期间的关税支出。
•预计调整后营业收入将达到3,8500万美元（优于先前预测的3,770至3,8700万美元高端），调整后相较于去年调整基础上增长11％（先前预测为10至11％），不包括该期间的异期税费用。与先前预测相比，调整后的营业收入包含来自供应链和库存管理行动的600万美元影响。
•预计调整后的每股收益目前为4.83美元（先前预期约为4.80美元），调整基础上与去年相比，调整后增长9%（先前预期为8%），不包括该时期的跨期关税费用。调整后的每股收益包含来自供应链和库存管理行动的0.08美元影响，与先前预期相比
•预计营运现金将超过36000万美元（超过之前预估的35000万美元）
绿斯伯勒，北卡罗来纳州 - 2024 年 10 月 31 日 - Kontoor Brands, Inc.（纽交所：KTB），一家全球时尚服装公司，旗下拥有两个全球最具代表性的消费品牌， 牛仔® 和 李®今天公布了截至 2024 年 9 月 28 日的第三季度财务业绩。
「我们第三季度的业绩超出预期，这要归功于强劲的执行力和业务基本面，」kontoor brands的董事长、首席执行官Scott Baxter表示。「我们在品牌上的投资持续推动市场份额增长、扩大分销、品类增长以及新创新平台。在Jeanius转型计划的推动下，业务的动能正在累积，并有望透过增加的投资能力和资本配置选择让我们未来几年为利益相关者带来强劲回报。」
2024年第三季损益表回顾
营业收入 营业收入为67000万美元，较去年增加2％。此增加是由全球直接消费者和美国批发市场的增长驱动的，部分抵消了国际批发收入的下降。
美国的营业收入为$53000万，较去年同期增长5％。批发营业收入增长5％，主要原因是扩大分销、市场份额增加以及POS销售强劲，部分被零售商库存管理措施所抵销。直接消费者营业收入增长5％，主要原因是数位部分增长9％，部分被实体零售下降2％所抵销。
国际营业收入为14100万美元，较去年同比下降5％。国际批发下降7％，直接到消费者的销售量持平，数位销售增长11％，部分抵消了自家实体零售的6％下降。欧洲下降了6％（以恒定货币计算下降8％），直接到消费者增长9％（以恒定货币计算增长7％），但批发下降了9％（以恒定货币计算下降11％）大幅抵消了增长部分。亚洲增长了2％，其中批发增长5％，部分抵消了直接到消费者的7％下降。美洲以外的美洲地区下降了12％（以恒定货币计算下降6％）。
Wrangler品牌全球营业收入为46400万美元，较去年同期增加4%。Wrangler美国营业收入增长5%，主要得益于消费者直销增长10%和批发增长5%。Wrangler国际营业收入下降3%，主要受到批发下滑的影响，部分被消费者直销增长所抵销。
Lee品牌全球营业收入为20200万美元，较去年同期减少3%。Lee美国营收增加1%，由批发渠道增长部分抵销直接消费者减少。Lee国际营收下降7%，由于批发和实体零售业务下滑所致，部分抵销了数位业务的增长。
毛利率 根据报告，毛利率提高320个基本点至44.7％，根据调整后的基础提高150个基本点至45.0％，与前年报告结果相比，排除了当期的违期税收费用。调整后的毛利率扩张主要受益于产品成本降低和供应链效率提高，部分抵消了价格下降的不利影响。
销售、总部和行政支出（SG&A） 在报告基础上，支出为2,0100万美元，占营业收入的30.0％。调整后，销售及总务支出为1,9500万美元，占营业收入的29.1％，较去年同期增加5％，主要原因是需求创造投资、产品开发和分销支出增加。
营收 报告基础上的营业收入为9800万美元。根据调整后基础，营业收入为10700万美元，较去年同期报告基础增加8％，不包括该期间的异常关税费用。根据报告基础排除该期间的异常关税费用，调整后的营业利润率为15.9％，与去年同期相比提高80个基点。
每股收益（EPS） 据报告基准，每股收益为1.26美元。根据调整基准，每股收益为1.37美元，相较于前一年的报告每股收益1.22美元，不包括该期间的逾期关税费用，表示增长了12%。
资产负债表和流动性审核
公司以26900万现金及现金等价物，和74500万长期负债结束第三季度。
第三季结束时的库存为46200万美元，较去年同期下降24%。
截至第三季结束时，公司在循环信贷设施下没有未清偿借款，并可按此设施借款49400万美元。
正如先前公布的那样，公司的董事会宣布每股派发固定季度现金股息为0.52美元，相较于2024年第二季度增加了4％，将于2024年12月9日下班时结束记录的股东，于2024年12月19日派息。
公司坚定承诺回馈股东，第三季度回购了4000万美元的普通股。加上丰厚的股息，公司在第三季度向股东共回馈了6800万美元，在截至目前为止的年度回馈了16800万美元。公司在授权的股份回购计划下还剩下21500万美元。
更新2024展望
“由于第三季度结果优于预期，盈利能力和现金产生均较强，我们提高了全年展望，” kontoor brands总裁兼首席执行官Scott Baxter表示。“我们的业务定位在第四季度有所增强，这表现为营业收入增长的加速，毛利率扩大，运营收益增长较强以及库存进一步降低。在环境不确定的情况下，我们将继续保守经营业务，但仍对我们能够在年底及2025年带来良好回报的能力感到自信。”
公司更新的2024年展望包括以下内容：
•营业收入 预计目前营业收入为26亿美元（之前的预测为2.57亿至26.3亿美元），包括约69500万美元的第四季营收，反映约4％的增长。公司仍预期市场份额增加、来自渠道和类别扩展的增长，以及扩大分销将被保守的零售商库存管理和全球消费支出的宏观经济压力所抵销。
•调整后毛利率 预计毛利率将为45.1％（之前的预期为44.8％），较上年调整后的毛利率增加260个基点，不包括该期间的费用。调整后的毛利率中，与之前预期相比，供应链和库存管理行动将增加20个基点的影响。公司预计第四季度调整后的毛利率将为44.6％（之前预计为44.3％），较上年调整后的毛利率增加150个基点，不包括该期的费用。毛利扩张主要受益于产品成本降低、直接消费者组合和供应链效率的优势。
•调整后的销售及行政费用 预计调整后的销售及行政费用将较前一年增加4％，与先前的展望一致。公司将继续投资于支持长期盈利增长的品牌和能力，包括需求创造、直接面向消费者和国际扩张。
•调整后营业利益 预计为$38500万美元（$377到$38700万的前瞻性视角中的高端），与去年调整后营运收入相比增长11%，不包括在那个时期的过期关税支出。调整后的营运收入中包含来自供应链和库存管理行动的$600万影响，与前瞻性视角相比。供应链行动，主要是加快运输，预计能支持今年第四季度和2025年上半年的增长预期而确保库存位置。库存管理行动是公司继续专注于改善库存结构和促进进一步降低库存和增加现金流的结果，同时为2025年业务打下更坚实的基础。预计第四季度调整后的营运收入为$10500万美元，增长超过20%。
•调整后每股收益 预计每股收益为4.83美元（约比原先的预期4.80美元），其中包括与先前预期相比，来自供应链和库存管理行动的增加0.08美元的影响。不包括去年先前期应付关税支出后，调整后每股收益预计将增长9%（先前预期为8%）。在第四季度，公司预计调整后每股收益为1.31美元。2024年全年调整后每股收益中包括来自较高税率的约5个百分点的不利影响，其中第四季度约有25个百分点的不利影响。
•资本支出 现在预计为2500万美元（前景为3500万美元）。
•公司预计全年会有 有效税率 增幅约为20%。 利息费用 预计约为3200万美元。 其他费用 预计在1200万至1400万美元之间。 平均流通股份 预计约为5600万，不包括任何未来股份回购的影响。
•公司现在预计 营运现金流 将超过36000万美元（之前预期为35000万美元），这是由于加快盈利增长和进一步减少库存的结合所驱动。
•公司2024年展望并未反映出专案Jeanius的任何重大影响。
2025年初步展望和Jeanius项目
•公司预计其成长势头将在2025年继续，受持续市场份额增长、类别扩展和新分销驱动。根据目前的可见性，公司预计在2025年上半年的营业收入将增长约4%。
•预计调整后的毛利率扩张将受到结构组合、供应链计划和Jeanius计划效益的推动，部分抵销了轻微产品成本通胀和持续的供应链波动影响。
•预计调整后的营业收入增长将超过营业收入增长，原因为毛利率扩张、SG&A杠杆化以及专案Jeanius的好处。公司预计将持续增加投资率，支持其增长优先事项，如需求创造、类别扩展、国际扩展和直接面对消费者。
•预计Project Jeanius的效益将在2025年下半年开始逐渐显现，随著供应链措施的扩大。预计Project Jeanius将在2025年上半年提供适度的SG&A效益，由于毛利率和SG&A措施的结合，下半年的效益将加速增长。
•公司预计通过盈利增长和改善净工作资本管理推动强劲现金产生，提供重要的资本配置选择弹性。
此发布涉及2024年和2023年所调整的数量以及"固定货币"数量，详情请参见下面的非GAAP财务指标部分。除非另有说明，"报告"和"固定货币"数量是相同的。如先前披露，2023年第三季度结果包括涉及以前时期的1300万美元的负担费用，而2023年全年结果则包括涉及以前年度的1400万美元的负担费用。所有每股金额均以稀释基础呈现。本文中呈现的金额可能因使用未取整数字而无法重新计算。
网路广播讯息
kontoor brands将于2024年第三季度举行电话会议，时间为今天上午8:30，即2024年10月31日。该会议将通过互联网现场直播，网址为https://www.kontoorbrands.com/investors。对于无法收听现场直播的人，将在同一位置提供存档版本。
非通用会计原则财务指标
调整后金额 - 本公告涉及“调整后”金额。 2024年调整代表与业务优化活动相关的费用，以及为了简化和转移我们内部制造网络中的某些生产而采取的行动。 2023年调整代表第二季度公司采取的战略行动所产生的费用，以提高我们的运营效率，其中包括削减全球工作人员、简化和转移我们内部制造网络中的某些生产，以及全球化我们
营运模式。有关调整金额的额外资讯，请参阅随附本公告的补充财务资讯中的附注。
恒定货币 - 本公告涉及根据GAAP报告的金额，该金额包括由于外汇货币兑换汇率变动而产生的翻译和交易影响。本公告还涉及“恒定货币”金额，不包括外汇货币兑换汇率变动的翻译影响。
这些非GAAP指标与最相近的GAAP指标之间的对帐调节，已包含在此发布中的补充财务资讯中，该资讯确定并量化所有对帐调整，并提供管理层对为何这些非GAAP资讯对投资者有用的观点。管理层认为，这些非GAAP指标在评估业务时是有用的，但这些资讯应当视为对根据GAAP报告的结果的补充，而非替代。此次发布中公司使用的非GAAP指标可能与其他公司使用的同名指标不同。
对于本报告中包含的前瞻性非依照通用会计原则（GAAP）标准衡量的内容，公司并未提供与最相近的GAAP财务标准的调和，因为调和这些标准所需的资讯因预测尚未发生或已排除调整措施的各项事项的时间和/或金额难以预测而无法取得。此外，估计这些GAAP标准并对未来期间按照公司会计政策提供有意义的调和需要一个精度水平，而这个精度水平对未来期间是不可得的，除非进行不合理的努力，是无法实现的。
关于kontoor brands
kontoor brands公司（纽交所：KTB）是一家全球时尚服装公司，旗下拥有两个全球最具标志性消费品牌： 牛仔® 和 李®kontoor designs，制造，分销和许可卓越的高品质产品，外观精致，合身度极佳，让全球的人们拥有表达自我的自由和信心。 kontoor brands是一个以目的为导向的组织，专注于利用其全球平台、战略采购模式和最佳供应链来推动品牌增长，为利益相关者创造长期价值。有关kontoor brands的更多信息，请访问 www.KontoorBrands.com.
前瞻性陈述
本发布及附件中包含的某些声明属于「前瞻性陈述」，根据联邦证券法的定义。根据我们对影响公司未来事件的期望和信念做出前瞻性陈述，因此涉及多重风险和不确定性。 您可以通过这些陈述使用「将」、「预期」、「估计」、「期望」、「应该」、「可能」和其他具有相似含义或使用未来日期的词语和术语来识别。 我们警告说，前瞻性陈述并非保证，实际结果可能与前瞻性陈述中表述或暗示的结果有实质不同。 我们不打算更新这些前瞻性陈述中的任何一项，也不打算公布对这些前瞻性陈述进行修订的结果，其他的例外情况除外，这是根据美国联邦证券法的要求。 潜在风险和 其他
可能导致公司业务实际结果或财务状况与本公告中的前瞻性陈述所述有实质不同的不确定因素包括但不限于：宏观经济条件，包括高利率、通胀、经济衰退担忧和波动的外汇汇率，以及全球供应链问题和地缘政治事件持续对全球经济环境产生负面影响，并且已经，可能继续对公司的业务、业绩、财务状况和现金流 (包括未来不确定影响) 产生负面影响；服装的消费需求水平；依赖少数大客户；供应链和航运中断，可能导致航运延误，运输成本上升和产品成本增加或销售损失；激烈的行业竞争；准确预测产品需求的能力；公司评估消费者偏好和产品趋势，并回应不断变化的市场的能力；公司维护品牌形象的能力；边际压力增加；通过公司的直接面向消费者业务进行的电子商务运作；零售行业所面临的财务困难；可能的商誉及其他资产损损；实施公司业务策略的能力；制造设施和外国供应商的稳定性；工资水平、原材料和承包产品的价格、可用性和质量的波动；依赖少数供应商进行原材料采购，并能够及时或充足地获取原材料的能力；分发系统中断；季节性；非季节性或严重天气条件；公司及其供应商维护信息技术系统的强度和安全性的能力；设施和系统以及第三方服务提供商有可能易受攻击，无法预测或检测到数据安全漏洞和数据或财务损失，或维持运营绩效；妥善收集、使用、管理和保护消费者和员工数据的能力；全球资本和信贷市场的混乱和波动及其对公司在良好条件下获取短期或长期融资的影响；法律、监管、政治和经济风险；贸易政策的变更，包括关税和进出口法规；气候变化及相关立法和监管的影响；公司及第三方供应商和制造商遵守反贿赂、反腐败和反洗钱法的要求；税法和责任的变化；遵守或违反环境、消费者保护、就业、隐私、安全和其他事项的国家、州和地方法律和规定的成本；管理层成员的持续性；劳资关系；保护商标和其他知识产权的能力；公司的许可证持有人是否能够产生预期销售并保持公司品牌的价值；公司维持令人满意的信贷评级；有关公司业务的限制，关于公司债务义务；公司普通股价格和交易量的波动；公司组织文件中的防止收购条款；以及我们股份回购的数量和频率的波动。前述许多风险和不确定性将会因全球商业和经济环境的恶化而加剧。
更多可能影响公司财务业绩的因素详细描述于公司最近的年度10-k表格以及公司向证券交易委员会提交的其他报告和声明。
联络人
投资者：
Michael Karapetian，(336) 332-4263
企业发展、策略和投资者关系副总裁
Michael.Karapetian@kontoorbrands.com
或
媒体：
聚利a伯吉，(336) 332-5122
外部通信董事
Julia.Burge@kontoorbrands.com
###
KONTOOR BRANDS, INC.
损益综合表简明合并报表
(未经查核)
| 截至九月三个月的时间 | % | 截至九月份的九个月 | % | |||||||||||||||||||||||||||||||||||
| (除每股金额外，一切数字以千元及千股计算) | 2024 | 2023 | 变化 | 2024 | 2023 | 变化 | ||||||||||||||||||||||||||||||||
| 净收入 | $ | 670,194 | $ | 654,540 | 2% | $ | 1,908,294 | $ | 1,937,672 | (2)% | ||||||||||||||||||||||||||||
| 营业成本和营业费用 | ||||||||||||||||||||||||||||||||||||||
| 营业成本 | 370,684 | 383,075 | (3)% | 1,052,280 | 1,129,245 | (7)% | ||||||||||||||||||||||||||||||||
| 销售、一般及管理费用 | 201,189 | 185,983 | 8% | 598,020 | 564,599 | 6% | ||||||||||||||||||||||||||||||||
| 总成本和营业费用 | 571,873 | 569,058 | —% | 1,650,300 | 1,693,844 | (3)% | ||||||||||||||||||||||||||||||||
| 营收 | 98,321 | 85,482 | 15% | 257,994 | 243,828 | 6% | ||||||||||||||||||||||||||||||||
| 利息费用 | (11,178) | (10,454) | 7% | (30,852) | (30,390) | 2% | ||||||||||||||||||||||||||||||||
| 利息收入 | 2,965 | 964 | 208% | 8,006 | 2,074 | 286% | ||||||||||||||||||||||||||||||||
| 其他费用，净额 | (3,335) | (3,764) | (11)% | (9,239) | (9,142) | 1% | ||||||||||||||||||||||||||||||||
| 税前收入 | 86,773 | 72,228 | 20% | 225,909 | 206,370 | 9% | ||||||||||||||||||||||||||||||||
| 所得税 | 16,225 | 12,697 | 28% | 44,085 | 44,147 | —% | ||||||||||||||||||||||||||||||||
| 净利润 | $ | 70,548 | $ | 59,531 | 19% | $ | 181,824 | $ | 162,223 | 12% | ||||||||||||||||||||||||||||
| 每个普通股的盈利 | ||||||||||||||||||||||||||||||||||||||
| 基础 | $ | 1.27 | $ | 1.06 | $ | 3.27 | $ | 2.90 | ||||||||||||||||||||||||||||||
| 稀释 | $ | 1.26 | $ | 1.05 | $ | 3.22 | $ | 2.85 | ||||||||||||||||||||||||||||||
| 加权平均流通股数 | ||||||||||||||||||||||||||||||||||||||
| 基础 | 55,421 | 56,151 | 55,655 | 55,962 | ||||||||||||||||||||||||||||||||||
| 稀释 | 56,054 | 56,956 | 56,416 | 56,914 | ||||||||||||||||||||||||||||||||||
所有板块在本公告中的财务表格之呈现基础： 公司运营并报告采用以最接近12月31日星期六结束的52/53周财政年度。在此表示目的上，所有涉及2024年9月和2023年9月结束周期的参考对应于2024年9月28日和2023年9月30日结束的13周和39周财政期间，分别。涉及2024年9月、2023年12月和2023年9月的引用与2024年9月28日、2023年12月30日和2023年9月30日期表相关。由于使用未经精确舍入的数字，此处金额可能不会重新计算。
KONTOOR BRANDS, INC.
缩短的合并财务报表
(未经查核)
| (以千计) | 二零二四年九月 | 二零三年十二月 | 二零二三年九月 | |||||||||||||||||
| 资产 | ||||||||||||||||||||
| 流动资产 | ||||||||||||||||||||
| 现金及现金等值 | $ | 269,427 | $ | 215,050 | $ | 77,828 | ||||||||||||||
| 应收帐款净额 | 230,435 | 217,673 | 236,816 | |||||||||||||||||
| 库存 | 461,510 | 500,353 | 605,234 | |||||||||||||||||
| 预付费用及其他流动资产 | 104,855 | 110,808 | 113,186 | |||||||||||||||||
| 流动资产总额 | 1,066,227 | 1,043,884 | 1,033,064 | |||||||||||||||||
| 物业、工厂及设备净值 | 106,842 | 112,045 | 110,399 | |||||||||||||||||
| 营运租赁资产 | 54,638 | 54,812 | 63,114 | |||||||||||||||||
| 无形资产净值 | 11,778 | 12,497 | 12,553 | |||||||||||||||||
| 善良 | 209,843 | 209,862 | 209,413 | |||||||||||||||||
| 其他资产 | 203,795 | 212,339 | 197,387 | |||||||||||||||||
| 总资产 | $ | 1,653,123 | $ | 1,645,439 | $ | 1,625,930 | ||||||||||||||
| 负债及权益 | ||||||||||||||||||||
| 流动负债 | ||||||||||||||||||||
| 短期贷款 | $ | — | $ | — | $ | — | ||||||||||||||
| 长期债务的当前部分 | — | 20,000 | 17,500 | |||||||||||||||||
| 应付帐款 | 201,863 | 180,220 | 182,448 | |||||||||||||||||
| 累计及其他流动负债 | 204,375 | 171,414 | 168,356 | |||||||||||||||||
| 经营租赁负债，流动 | 21,050 | 21,003 | 20,975 | |||||||||||||||||
| 流动负债总额 | 427,288 | 392,637 | 389,279 | |||||||||||||||||
| 营运租赁负债，非流动 | 36,572 | 36,753 | 41,348 | |||||||||||||||||
| 其他负债 | 87,350 | 80,215 | 79,084 | |||||||||||||||||
| 长期债务 | 744,986 | 763,921 | 768,595 | |||||||||||||||||
| 负债总额 | 1,296,196 | 1,273,526 | 1,278,306 | |||||||||||||||||
| 承诺和应变 | ||||||||||||||||||||
| 总资本 | 356,927 | 371,913 | 347,624 | |||||||||||||||||
| 负债及权益总额 | $ | 1,653,123 | $ | 1,645,439 | $ | 1,625,930 | ||||||||||||||
KONTOOR BRANDS, INC.
综合现金流量表
(未经查核)
| Nine Months Ended September | ||||||||||||||
| (In thousands) | 2024 | 2023 | ||||||||||||
| OPERATING ACTIVITIES | ||||||||||||||
| Net income | $ | 181,824 | $ | 162,223 | ||||||||||
| Adjustments to reconcile net income to cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | 29,052 | 27,405 | ||||||||||||
| Stock-based compensation | 16,316 | 9,017 | ||||||||||||
| Other, including working capital changes | 59,066 | (51,119) | ||||||||||||
| Cash provided by operating activities | 286,258 | 147,526 | ||||||||||||
| INVESTING ACTIVITIES | ||||||||||||||
| Property, plant and equipment expenditures | (11,841) | (21,553) | ||||||||||||
| Capitalized computer software | (2,766) | (8,940) | ||||||||||||
| Other | (1,858) | (837) | ||||||||||||
| Cash used by investing activities | (16,465) | (31,330) | ||||||||||||
| FINANCING ACTIVITIES | ||||||||||||||
| Borrowings under revolving credit facility | — | 288,000 | ||||||||||||
| Repayments under revolving credit facility | — | (288,000) | ||||||||||||
| Repayments of term loan | (40,000) | (7,500) | ||||||||||||
| Repurchases of Common Stock | (85,677) | — | ||||||||||||
| Dividends paid | (83,306) | (80,719) | ||||||||||||
| Shares withheld for taxes, net of proceeds from issuance of Common Stock | (1,769) | (2,506) | ||||||||||||
| Other | — | (7,297) | ||||||||||||
| Cash used by financing activities | (210,752) | (98,022) | ||||||||||||
| Effect of foreign currency rate changes on cash and cash equivalents | (4,664) | 475 | ||||||||||||
| Net change in cash and cash equivalents | 54,377 | 18,649 | ||||||||||||
| Cash and cash equivalents – beginning of period | 215,050 | 59,179 | ||||||||||||
| Cash and cash equivalents – end of period | $ | 269,427 | $ | 77,828 | ||||||||||
KONTOOR BRANDS, INC.
Supplemental Financial Information
Business Segment Information
(Unaudited)
| Three Months Ended September | % Change | % Change Constant Currency (a) | ||||||||||||||||||||||||
| (Dollars in thousands) | 2024 | 2023 | ||||||||||||||||||||||||
| Segment revenues: | ||||||||||||||||||||||||||
| Wrangler | $ | 464,107 | $ | 444,539 | 4% | 4% | ||||||||||||||||||||
| Lee | 202,343 | 208,027 | (3)% | (3)% | ||||||||||||||||||||||
| Total reportable segment revenues | 666,450 | 652,566 | 2% | 2% | ||||||||||||||||||||||
Other revenues (b) | 3,744 | 1,974 | 90% | 90% | ||||||||||||||||||||||
| Total net revenues | $ | 670,194 | $ | 654,540 | 2% | 2% | ||||||||||||||||||||
| Segment profit: | ||||||||||||||||||||||||||
| Wrangler | $ | 97,753 | $ | 81,556 | 20% | 20% | ||||||||||||||||||||
| Lee | 23,355 | 20,735 | 13% | 11% | ||||||||||||||||||||||
| Total reportable segment profit | $ | 121,108 | $ | 102,291 | 18% | 18% | ||||||||||||||||||||
| Corporate and other expenses | (26,307) | (20,091) | 31% | 31% | ||||||||||||||||||||||
| Interest expense | (11,178) | (10,454) | 7% | 7% | ||||||||||||||||||||||
| Interest income | 2,965 | 964 | 208% | 211% | ||||||||||||||||||||||
Profit (loss) related to other revenues (b) | 185 | (482) | 138% | 139% | ||||||||||||||||||||||
| Income before income taxes | $ | 86,773 | $ | 72,228 | 20% | 20% | ||||||||||||||||||||
| Nine Months Ended September | % Change | % Change Constant Currency (a) | ||||||||||||||||||||||||
| (Dollars in thousands) | 2024 | 2023 | ||||||||||||||||||||||||
| Segment revenues: | ||||||||||||||||||||||||||
| Wrangler | $ | 1,302,846 | $ | 1,293,171 | 1% | 1% | ||||||||||||||||||||
| Lee | 597,085 | 636,684 | (6)% | (6)% | ||||||||||||||||||||||
| Total reportable segment revenues | 1,899,931 | 1,929,855 | (2)% | (2)% | ||||||||||||||||||||||
Other revenues (b) | 8,363 | 7,817 | 7% | 7% | ||||||||||||||||||||||
| Total net revenues | $ | 1,908,294 | $ | 1,937,672 | (2)% | (2)% | ||||||||||||||||||||
| Segment profit: | ||||||||||||||||||||||||||
| Wrangler | $ | 260,758 | $ | 223,639 | 17% | 16% | ||||||||||||||||||||
| Lee | 71,816 | 77,473 | (7)% | (7)% | ||||||||||||||||||||||
| Total reportable segment profit | $ | 332,574 | $ | 301,112 | 10% | 10% | ||||||||||||||||||||
| Corporate and other expenses | (82,745) | (65,815) | 26% | 26% | ||||||||||||||||||||||
| Interest expense | (30,852) | (30,390) | 2% | 2% | ||||||||||||||||||||||
| Interest income | 8,006 | 2,074 | 286% | 286% | ||||||||||||||||||||||
Loss related to other revenues (b) | (1,074) | (611) | 76% | 76% | ||||||||||||||||||||||
| Income before income taxes | $ | 225,909 | $ | 206,370 | 9% | 9% | ||||||||||||||||||||
(a) Refer to constant currency definition on the following pages.
(b) We report an “Other” category to reconcile segment revenues and segment profit to the Company's operating results, but the Other category does not meet the criteria to be considered a reportable segment. Other includes sales and licensing of Rock & Republic®, other company-owned brands and private label apparel.
KONTOOR BRANDS, INC.
Supplemental Financial Information
Business Segment Information – Constant Currency Basis (Non-GAAP)
(Unaudited)
| Three Months Ended September 2024 | ||||||||||||||||||||
| As Reported | Adjust for Foreign | |||||||||||||||||||
| (In thousands) | under GAAP | Currency Exchange | Constant Currency | |||||||||||||||||
| Segment revenues: | ||||||||||||||||||||
| Wrangler | $ | 464,107 | $ | 220 | $ | 464,327 | ||||||||||||||
| Lee | 202,343 | (22) | 202,321 | |||||||||||||||||
| Total reportable segment revenues | 666,450 | 198 | 666,648 | |||||||||||||||||
| Other revenues | 3,744 | — | 3,744 | |||||||||||||||||
| Total net revenues | $ | 670,194 | $ | 198 | $ | 670,392 | ||||||||||||||
| Segment profit: | ||||||||||||||||||||
| Wrangler | $ | 97,753 | $ | 61 | $ | 97,814 | ||||||||||||||
| Lee | 23,355 | (266) | 23,089 | |||||||||||||||||
| Total reportable segment profit | $ | 121,108 | $ | (205) | $ | 120,903 | ||||||||||||||
| Corporate and other expenses | (26,307) | 15 | (26,292) | |||||||||||||||||
| Interest expense | (11,178) | — | (11,178) | |||||||||||||||||
| Interest income | 2,965 | 30 | 2,995 | |||||||||||||||||
| Profit (loss) related to other revenues | 185 | 1 | 186 | |||||||||||||||||
| Income before income taxes | $ | 86,773 | $ | (159) | $ | 86,614 | ||||||||||||||
| Nine Months Ended September 2024 | ||||||||||||||||||||
| As Reported | Adjust for Foreign | |||||||||||||||||||
| (In thousands) | under GAAP | Currency Exchange | Constant Currency | |||||||||||||||||
| Segment revenues: | ||||||||||||||||||||
| Wrangler | $ | 1,302,846 | $ | (1,201) | $ | 1,301,645 | ||||||||||||||
| Lee | 597,085 | 563 | 597,648 | |||||||||||||||||
| Total reportable segment revenues | 1,899,931 | (638) | 1,899,293 | |||||||||||||||||
| Other revenues | 8,363 | — | 8,363 | |||||||||||||||||
| Total net revenues | $ | 1,908,294 | $ | (638) | $ | 1,907,656 | ||||||||||||||
| Segment profit: | ||||||||||||||||||||
| Wrangler | $ | 260,758 | $ | (459) | $ | 260,299 | ||||||||||||||
| Lee | 71,816 | (93) | 71,723 | |||||||||||||||||
| Total reportable segment profit | $ | 332,574 | $ | (552) | $ | 332,022 | ||||||||||||||
| Corporate and other expenses | (82,745) | (75) | (82,820) | |||||||||||||||||
| Interest expense | (30,852) | — | (30,852) | |||||||||||||||||
| Interest income | 8,006 | (6) | 8,000 | |||||||||||||||||
| Loss related to other revenues | (1,074) | 1 | (1,073) | |||||||||||||||||
| Income before income taxes | $ | 225,909 | $ | (632) | $ | 225,277 | ||||||||||||||
Constant Currency Financial Information
The Company is a global company that reports financial information in U.S. dollars in accordance with GAAP. Foreign currency exchange rate fluctuations affect the amounts reported by the Company from translating its foreign revenues and expenses into U.S. dollars. These rate fluctuations can have a significant effect on reported operating results. As a supplement to our reported operating results, we present constant currency financial information, which is a non-GAAP financial measure that excludes the impact of translating foreign currencies into U.S. dollars. 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. Management believes this information is useful to investors to facilitate comparison of operating results and better identify trends in our businesses.
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).
These constant currency performance measures should be viewed in addition to, and not as an alternative for, reported results under GAAP. The constant currency information presented may not be comparable to similarly titled measures reported by other companies.
KONTOOR BRANDS, INC.
Supplemental Financial Information
Reconciliation of Adjusted Financial Measures - Quarter-to-Date (Non-GAAP)
(Unaudited)
| Three Months Ended September | |||||
| (Dollars in thousands, except per share amounts) | 2024 | ||||
| Cost of goods sold - as reported under GAAP | $ | 370,684 | |||
Restructuring and transformation costs (a) | (2,058) | ||||
| Adjusted cost of goods sold | $ | 368,626 | |||
| Selling, general and administrative expenses - as reported under GAAP | $ | 201,189 | |||
Restructuring and transformation costs (a) | (6,382) | ||||
| Adjusted selling, general and administrative expenses | $ | 194,807 | |||
| Diluted earnings per share - as reported under GAAP | $ | 1.26 | |||
Restructuring and transformation costs (a) | 0.11 | ||||
| Adjusted diluted earnings per share | $ | 1.37 | |||
| Net income - as reported under GAAP | $ | 70,548 | |||
| Income taxes | 16,225 | ||||
| Interest expense | 11,178 | ||||
| Interest income | (2,965) | ||||
| EBIT | $ | 94,986 | |||
| Depreciation and amortization | 9,522 | ||||
| EBITDA | $ | 104,508 | |||
Restructuring and transformation costs (a) | 8,440 | ||||
| Adjusted EBITDA | $ | 112,948 | |||
| As a percentage of total net revenues | 16.9 | % | |||
Non-GAAP Financial Information: The financial information above has been presented on a GAAP basis and on an adjusted basis. EBIT, EBITDA and adjusted presentations are non-GAAP measures. See “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document. Amounts herein may not recalculate due to the use of unrounded numbers.
(a) See Note 1 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document.
KONTOOR BRANDS, INC.
Supplemental Financial Information
Summary of Select GAAP and Non-GAAP Measures
(Unaudited)
| Three Months Ended September | ||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||
| (Dollars in thousands, except per share amounts) | GAAP | Adjusted | GAAP | |||||||||||||||||
| Net revenues | $ | 670,194 | $ | 670,194 | $ | 654,540 | ||||||||||||||
| Gross margin | $ | 299,510 | $ | 301,568 | $ | 271,465 | ||||||||||||||
| As a percentage of total net revenues | 44.7 | % | 45.0 | % | 41.5 | % | ||||||||||||||
| Selling, general and administrative expenses | $ | 201,189 | $ | 194,807 | $ | 185,983 | ||||||||||||||
| As a percentage of total net revenues | 30.0 | % | 29.1 | % | 28.4 | % | ||||||||||||||
| Operating income | $ | 98,321 | $ | 106,761 | $ | 85,482 | ||||||||||||||
| As a percentage of total net revenues | 14.7 | % | 15.9 | % | 13.1 | % | ||||||||||||||
| Earnings per share - diluted | $ | 1.26 | $ | 1.37 | $ | 1.05 | ||||||||||||||
Non-GAAP Financial Information: The financial information above has been presented on a GAAP basis and on an adjusted basis. These adjusted presentations are non-GAAP measures. See “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document.
KONTOOR BRANDS, INC.
Supplemental Financial Information
Disaggregation of Revenue
(Unaudited)
| Three Months Ended September 2024 | ||||||||||||||||||||||||||
| Revenues - As Reported | ||||||||||||||||||||||||||
| (In thousands) | Wrangler | Lee | Other | Total | ||||||||||||||||||||||
| Channel revenues | ||||||||||||||||||||||||||
| U.S. Wholesale | $ | 373,643 | $ | 105,342 | $ | 3,577 | $ | 482,562 | ||||||||||||||||||
| Non-U.S. Wholesale | 51,599 | 65,268 | — | 116,867 | ||||||||||||||||||||||
| Direct-to-Consumer | 38,865 | 31,733 | 167 | 70,765 | ||||||||||||||||||||||
| Total | $ | 464,107 | $ | 202,343 | $ | 3,744 | $ | 670,194 | ||||||||||||||||||
| Geographic revenues | ||||||||||||||||||||||||||
| U.S. | $ | 406,656 | $ | 119,254 | $ | 3,744 | $ | 529,654 | ||||||||||||||||||
| International | 57,451 | 83,089 | — | 140,540 | ||||||||||||||||||||||
| Total | $ | 464,107 | $ | 202,343 | $ | 3,744 | $ | 670,194 | ||||||||||||||||||
| Three Months Ended September 2023 | ||||||||||||||||||||||||||
| Revenues - As Reported | ||||||||||||||||||||||||||
| (In thousands) | Wrangler | Lee | Other | Total | ||||||||||||||||||||||
| Channel revenues | ||||||||||||||||||||||||||
| U.S. Wholesale | $ | 355,608 | $ | 103,564 | $ | 1,799 | $ | 460,971 | ||||||||||||||||||
| Non-U.S. Wholesale | 53,644 | 71,433 | — | 125,077 | ||||||||||||||||||||||
| Direct-to-Consumer | 35,287 | 33,030 | 175 | 68,492 | ||||||||||||||||||||||
| Total | $ | 444,539 | $ | 208,027 | $ | 1,974 | $ | 654,540 | ||||||||||||||||||
| Geographic revenues | ||||||||||||||||||||||||||
| U.S. | $ | 385,501 | $ | 118,352 | $ | 1,974 | $ | 505,827 | ||||||||||||||||||
| International | 59,038 | 89,675 | — | 148,713 | ||||||||||||||||||||||
| Total | $ | 444,539 | $ | 208,027 | $ | 1,974 | $ | 654,540 | ||||||||||||||||||
KONTOOR BRANDS, INC.
Supplemental Financial Information
Summary of Select Revenue Information
(Unaudited)
| Three Months Ended September | ||||||||||||||||||||||||||
| 2024 | 2023 | 2024 to 2023 | ||||||||||||||||||||||||
| (Dollars in thousands) | As Reported under GAAP | % Change Reported | % Change Constant Currency | |||||||||||||||||||||||
| Wrangler U.S. | $ | 406,656 | $ | 385,501 | 5% | 5% | ||||||||||||||||||||
| Lee U.S. | 119,254 | 118,352 | 1% | 1% | ||||||||||||||||||||||
| Other | 3,744 | 1,974 | 90% | 90% | ||||||||||||||||||||||
| Total U.S. revenues | $ | 529,654 | $ | 505,827 | 5% | 5% | ||||||||||||||||||||
| Wrangler International | $ | 57,451 | $ | 59,038 | (3)% | (2)% | ||||||||||||||||||||
| Lee International | 83,089 | 89,675 | (7)% | (7)% | ||||||||||||||||||||||
| Total International revenues | $ | 140,540 | $ | 148,713 | (5)% | (5)% | ||||||||||||||||||||
| Global Wrangler | $ | 464,107 | $ | 444,539 | 4% | 4% | ||||||||||||||||||||
| Global Lee | 202,343 | 208,027 | (3)% | (3)% | ||||||||||||||||||||||
| Global Other | 3,744 | 1,974 | 90% | 90% | ||||||||||||||||||||||
| Total revenues | $ | 670,194 | $ | 654,540 | 2% | 2% | ||||||||||||||||||||
Non-GAAP Financial Information: The financial information above has been presented on a GAAP basis and on a constant currency basis, which is a non-GAAP financial measure. See “Business Segment Information – Constant Currency Basis (Non-GAAP)” for additional information on constant currency financial calculations.
KONTOOR BRANDS, INC.
Supplemental Financial Information
Adjusted Return on Invested Capital (Non-GAAP)
(Unaudited)
(Dollars in thousands) | Trailing Twelve Months Ended September | |||||||||||||||||||
| Numerator | 2024 | 2023 | ||||||||||||||||||
| Net Income | $ | 250,595 | $ | 213,828 | ||||||||||||||||
| Plus: Income taxes | 40,843 | 68,920 | ||||||||||||||||||
| Plus: Interest income (expense), net | 31,147 | 37,796 | ||||||||||||||||||
| EBIT | $ | 322,585 | $ | 320,544 | ||||||||||||||||
Plus: Restructuring and transformation costs (a) | 26,832 | 6,679 | ||||||||||||||||||
Plus: Operating lease interest (b) | 1,213 | 1,009 | ||||||||||||||||||
| Adjusted EBIT | $ | 350,630 | $ | 328,232 | ||||||||||||||||
Adjusted effective income tax rate (c) | 15 | % | 24 | % | ||||||||||||||||
| Adjusted net operating profit after taxes | $ | 298,309 | $ | 248,789 | ||||||||||||||||
| Denominator | September 2024 | September 2023 | September 2022 | |||||||||||||||||
| Equity | $ | 356,927 | $ | 347,624 | $ | 208,099 | ||||||||||||||
| Plus: Current portion of long-term debt and other borrowings | — | 17,500 | 14,593 | |||||||||||||||||
| Plus: Noncurrent portion of long-term debt | 744,986 | 768,595 | 824,793 | |||||||||||||||||
Plus: Operating lease liabilities (d) | 57,622 | 62,323 | 49,140 | |||||||||||||||||
| Less: Cash and cash equivalents | (269,427) | (77,828) | (58,053) | |||||||||||||||||
| Invested capital | $ | 890,108 | $ | 1,118,214 | $ | 1,038,572 | ||||||||||||||
Average invested capital (e) | $ | 1,004,161 | $ | 1,078,393 | ||||||||||||||||
Net income to average debt and equity (f) | 22.4 | % | 19.6 | % | ||||||||||||||||
| Adjusted return on invested capital | 29.7 | % | 23.1 | % | ||||||||||||||||
Non-GAAP Financial Information: Adjusted return on invested capital (“ROIC”) is a non-GAAP measure. We believe this metric is useful in assessing the effectiveness of our capital allocation over time. ROIC may be different from similarly titled measures used by other companies. Amounts herein may not recalculate due to the use of unrounded numbers.
(a) See Note 2 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document.
(b) Operating lease interest is based upon the discount rate for each lease and recorded as a component of rent expense within “Selling, general and administrative expenses” in the Company's statements of operations. The adjustment for operating lease interest represents the add-back to earnings before interest and taxes (“EBIT”) based upon the assumption that properties under our operating leases were owned or accounted for as finance leases. Operating lease interest is added back to EBIT in the adjusted ROIC calculation to account for differences in capital structure between us and other companies.
(c) Effective income tax rate adjusted for restructuring and transformation costs and the corresponding tax impact. See Note 2 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document.
(d) Total of “Operating lease liabilities, current” and “Operating lease liabilities, noncurrent” in the Company's balance sheets.
(e) The average is based on the “Invested capital” at the end of the current period and at the end of the comparable prior period.
(f) Calculated as “Net income” divided by average “Debt” and “Equity.” “Debt” includes the current and noncurrent portion of long-term debt as well as other short-term borrowings. The average is based on the subtotal of “Debt” and “Equity” at the end of the current period and at the end of the comparable prior period.
KONTOOR BRANDS, INC.
Supplemental Financial Information
Reconciliation of Adjusted Financial Measures - Notes (Non-GAAP)
(Unaudited)
Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures
Management uses non-GAAP financial measures internally in its budgeting and review process and, in some cases, as a factor in determining compensation. In addition, adjusted EBITDA is a key financial measure for the Company's shareholders and financial leaders, as the Company's debt financing agreements require the measurement of adjusted EBITDA, along with other measures, in connection with the Company's compliance with debt covenants. 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. In addition, these non-GAAP measures may be different from similarly titled measures used by other companies.
(1) During the three months ended September 2024, restructuring and transformation costs included $6.3 million related to business optimization activities and $2.1 million related to streamlining and transferring select production within our internal manufacturing network. Total restructuring and transformation costs resulted in a corresponding tax impact of $2.0 million for the three months ended September 2024.
(2) During the trailing twelve months ended September 2024, restructuring and transformation costs were $26.8 million related to business optimization activities, streamlining and transferring select production within our internal manufacturing network, optimizing and globalizing our operating model and reductions in our global workforce. Total restructuring and transformation costs resulted in a corresponding tax impact of $6.6 million for the trailing twelve months ended September 2024.
During the trailing twelve months ended September 2023, restructuring and transformation costs were $6.7 million net, related to strategic actions taken by the Company to drive efficiencies in our operations, which included reducing our global workforce, streamlining and transferring select production within our internal manufacturing network and globalizing our operating model, a pension curtailment gain, other employee-related benefits and other costs. Total restructuring and transformation costs resulted in a corresponding tax impact of $1.1 million for the trailing twelve months ended September 2023.