Kontoor Brands Announces Preliminary Q4 2024 Financial Results and Strategic Growth Initiatives
Kontoor Brands, a globally recognized lifestyle apparel company known for its iconic brands Wrangler® and Lee®, has announced its preliminary financial results for the fourth quarter ended December 28, 2024. The company’s robust performance in the quarter underscores its strategic execution, brand investments, and operational efficiency.
A Strong Finish to 2024
Scott Baxter, President, Chief Executive Officer, and Chairman of Kontoor Brands, expressed his satisfaction with the company’s financial performance and strategic growth. “I am pleased with our strong finish to the year, driven by better-than-expected revenue, earnings, and cash generation,” Baxter stated. “Full-year 2024 was an incredible year for Kontoor, supported by consistent execution, strategic investments in our brands, and the extraordinary efforts of our global team. With the continued benefits of Project Jeanius and our acquisition of Helly Hansen, we are well-positioned for another year of strong returns and value creation in 2025.”
Kontoor Brands’ performance in Q4 2024 highlights its ability to navigate a competitive retail landscape through innovation, sustainability initiatives, and expanding its digital and omnichannel presence. The company’s leadership remains optimistic about sustained revenue growth and profitability in the coming year.
Upcoming Earnings Release and Conference Call
Kontoor Brands is set to release its fourth quarter and full-year fiscal 2024 financial results on Tuesday, February 25, 2025, at approximately 6:50 a.m. ET. Investors and stakeholders will have the opportunity to hear directly from company leadership during a live conference call scheduled for 8:30 a.m. ET.
The conference call will be broadcast live and will be accessible through Kontoor Brands’ investor relations website at kontoorbrands.com/investors. Those unable to join the live call can access an archived version at the same location.
Financial Reporting and Status of Form 10-K
It is important to note that Kontoor Brands has not yet filed its Annual Report on Form 10-K for the fiscal year ended December 28, 2024. As a result, the financial results provided in this preliminary announcement should be considered unaudited until the company officially submits its Form 10-K before the designated deadline. Investors are advised to interpret the financial data within this context.
Key Financial Metrics and Performance Indicators
Although specific financial figures will be disclosed in the final earnings report, Kontoor Brands has indicated that it exceeded expectations in several key areas:
- Revenue Growth: Strong sales performance across its core brands, with increased demand for Wrangler® and Lee® apparel globally.
- Earnings Performance: Higher-than-anticipated earnings per share (EPS), reflecting improved operational efficiencies and margin expansion.
- Cash Generation: Enhanced cash flow, enabling the company to invest further in growth initiatives and shareholder returns.
The company’s ability to maintain steady revenue streams and profitability, despite macroeconomic challenges, speaks to its disciplined approach to cost management and strategic investments.
Project Jeanius and Strategic Acquisition of Helly Hansen
A key driver of Kontoor Brands’ success has been Project Jeanius, a multi-year initiative focused on product innovation, supply chain optimization, and operational efficiencies. The project has enabled the company to streamline manufacturing, improve inventory management, and enhance customer engagement strategies.
In addition to Project Jeanius, the acquisition of Helly Hansen marks a significant milestone for Kontoor Brands. Helly Hansen, a globally recognized brand specializing in performance and outdoor apparel, will expand Kontoor’s portfolio and offer new revenue streams. The acquisition is expected to contribute positively to Kontoor’s financial performance in 2025 and beyond.
Non-GAAP Financial Measures and Adjustments
Kontoor Brands uses non-GAAP financial measures to provide a clearer picture of its underlying business performance. These measures exclude one-time charges and non-recurring expenses to present a more accurate representation of ongoing operations.
During 2024, adjustments included:
- Business Optimization Charges: Costs related to restructuring and efficiency-driven initiatives.
- Manufacturing Network Adjustments: Expenses associated with streamlining and transferring select production operations.
For comparison, similar adjustments were made in 2023, primarily involving:
- Global Workforce Reductions: Strategic actions taken to enhance operational efficiency.
- Production Realignment: Transfer of certain manufacturing processes to optimize supply chain costs.
- Operating Model Enhancements: Efforts to globalize and standardize processes across business units.
Full reconciliations of non-GAAP financial metrics with GAAP measures will be made available in the supplemental preliminary financial report accompanying the official earnings release. These adjustments provide investors with a comprehensive understanding of Kontoor’s core performance metrics.
Growth Strategies
Kontoor Brands is committed to sustaining its growth trajectory through:
- Product Innovation and Brand Expansion: Continuing to enhance the Wrangler® and Lee® product lines while leveraging Helly Hansen to diversify its offerings.
- Sustainability and ESG Initiatives: Strengthening its commitment to sustainable manufacturing, ethical sourcing, and environmental responsibility.
- E-commerce and Omnichannel Growth: Expanding direct-to-consumer (DTC) sales, improving digital capabilities, and optimizing retail partnerships.
- Global Market Penetration: Increasing brand presence in key international markets, including Asia, Europe, and Latin America.
- Supply Chain Optimization: Further improving logistics, inventory management, and production efficiency.
