×
75
Fashion Jobs
I.T.
Business Analyst - Warehouse (Sap - Wms)
Permanent · Hong Kong
PUMA
Business Analyst (Digitalization Project)
Permanent · Hong Kong
EASTWOOD CONSULTANTS LIMITED
Assistant Finance / Accounting Manager - Apac Tax
Permanent · Hong Kong
EASTWOOD CONSULTANTS LIMITED
E-Commerce Manager
Permanent · Hong Kong
EASTWOOD CONSULTANTS LIMITED
Head of Brand Management - Home Products
Permanent · Hong Kong
EASTWOOD CONSULTANTS LIMITED
Buyer - Luxury Home Furniture
Permanent · Hong Kong
CONNECTEDGROUP LTD
Senior Manager, Corporate Real Estate And fm (Apac - hk Based)
Permanent · HONG KONG
BESTEAM PERSONNEL CONSULTANCY LTD.
Sales Administration Coordinator
Permanent · BIRMINGHAM
CONNECTEDGROUP LTD
Senior Manager, Facilities Management / Cres (Apac - hk Based)
Permanent · HONG KONG
ESTÉE LAUDER COMPANIES
Field Visual Merchandizing Manager, tr hk/mc/tw
Permanent · HONG KONG
EASTWOOD CONSULTANTS LIMITED
Regional Digital Marketing Manager, Luxury Brand
Permanent · Hong Kong
EASTWOOD CONSULTANTS LIMITED
Accounting Manager - Luxury Brand
Permanent · Hong Kong
EASTWOOD CONSULTANTS LIMITED
Senior Administration Manager, Retail
Permanent · Hong Kong
EASTWOOD CONSULTANTS LIMITED
Regional Assistant HR Manager, c&b
Permanent · Hong Kong
EASTWOOD CONSULTANTS LIMITED
Assistant / Marketing Manager - Mnc
Permanent · Hong Kong
EASTWOOD CONSULTANTS LIMITED
Regional Planner - Global Mnc Brand
Permanent · Hong Kong
EASTWOOD CONSULTANTS LIMITED
Assistant Buying Manager
Permanent · Hong Kong
EASTWOOD CONSULTANTS LIMITED
Senior Finance Manager - Global Brand
Permanent · Hong Kong
EASTWOOD CONSULTANTS LIMITED
Regional Marketing Manager - Base China
Permanent · Hong Kong
EASTWOOD CONSULTANTS LIMITED
Assistant Accounting Manager - Global Brand
Permanent · Hong Kong
EASTWOOD CONSULTANTS LIMITED
Regional Merchandising Manager - Luxury Menswear
Permanent · Hong Kong
ESTÉE LAUDER COMPANIES
Corporate Account Executive, tr hk/mc/tw
Permanent · Hong Kong

Kontoor Brands reports first-quarter revenue slump, strengthens finances

Published
May 8, 2020
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Kontoor Brands is the latest company feeling the impact of the Covid-19 pandemic. 

Kontoor Brands reports Q1 revenue slump, strengthens finances. - Facebook: Wrangler


The Greensboro, North Carolina-based owner of the Lee and Wrangler denim brands announced on Thursday lacklustre first quarter results, as the Covid-19 pandemic had an adverse affect on the firm's revenue locally and beyond.

Revenue dropped 22 percent year-over-year to $504 million, on a reported and constant currency basis. Revenue declines during the quarter were primarily the result of store closures and stay-at-home orders launched across the U.S. and Europe, the company said in a statement.

During the first quarter, U.S. revenue was $379 million, down 16 percent on a reported basis. Compared with 2019 adjusted revenue, U.S. revenue declined 14 percent, once again driven primarily by the Covid-19 impacts. 

These declines were partially offset by growth in digital, with U.S. digital wholesale increasing 41 percent.

International revenue was $126 million, down 37 percent on a reported basis and down 35 percent in constant currency including China revenue, which was the most impacted.

Wrangler brand global revenue decreased to $303 million, an 18 percent decline on a reported and constant currency basis, while Lee brand global revenue decreased to $183 million, a 24 percent decline. 

The company recording an operating loss on a reported basis of $0.2 million and a loss per share of $0.05.


“Through February, results were in line with our expectations, but as the quarter progressed, impacts from Covid-19 became more pronounced,” explained Scott Baxter, president and CEO, Kontoor Brands, in a statement.

“We’ve implemented several strategic actions to help navigate the near-term challenges, while positioning the company for future success.”

As the company continues to navigate the Covid-19 pandemic, it has taken several actions to enhance liquidity including drawing down $475 million from its revolving credit facility prior to amendment and suspending payment of a quarterly dividend on a temporary basis. 

It also announced temporary salary reductions for senior management and other key leaders as well as a reduction in fees for the board of directors, and implemented temporary furloughs for certain personnel in retail stores, distribution centers, and corporate and regional offices.

While the company is not providing full-year 2020 guidance at this time, Baxter remained optimistic: “We believe Kontoor’s key retail partners remain well positioned to navigate this environment. With more than 200 years of authentic heritage, our two iconic brands offer consumers a distinct value proposition.

"In addition, we are highly encouraged by significant new programs and distribution gains that are expected for the second half of 2020. Our iconic brands, coupled with our cost savings efforts and scaled, agile supply chain, position Kontoor well in the marketplace,” concluded Baxter.

Copyright © 2020 FashionNetwork.com All rights reserved.