Kontoor Brands posts uplift in second quarter revenue
Kontoor Brands, the owner of Wrangler and Lee, has seen its second quarter revenue climb by 25% to $614 million.
The uplift in the three months to 2 July was primarily driven by strength in the US where revenue grew by 40% to $510 million year-on-year.
However, this was partially offset by the performance of the company’s international business where revenue fell by 18% to £103 million after trading was impacted by Covid-19 lockdowns in China.
Meanwhile, net income rose to $62 million from $23.6 million a year earlier.
Scott Baxter, president, chief executive and chair of Kontoor Brands, said: “In a highly dynamic macroeconomic environment, supply chain challenges and inflationary pressures accelerated during the quarter. I am proud of our teams’ agility to navigate rapid changes, outperform on a relative basis in our largest market, and deliver on our second quarter profitability goals,”
While Wrangler brand global revenue climbed by 34% to $418 million in the period, revenue at Lee rose by 10% to $193 million.
The company has now updated its 2022 outlook by announcing that full year revenue is expected to increase by around 6% on 2021. This compares to a previous guidance of up to around 10%.
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