Kontoor(US:KTB)2024-10-31 10:51Revenue Performance - Revenue for Q3 2024 was $670 million, a 2% increase compared to the prior year[1] - U.S. revenue was $530 million, a 5% increase driven by expanded distribution and market share gains[5] - International revenue decreased by 5% to $141 million, with a 7% decline in international wholesale[6] - Total net revenues for the three months ended September 2024 were $670,194, a 2% increase from $654,540 in 2023[40] - For the nine months ended September 2024, total net revenues were $1,908,294, a 2% decrease from $1,937,672 in 2023[40] - Wrangler segment revenues increased by 4% to $464,107, while Lee segment revenues decreased by 3% to $202,343[40] - U.S. wholesale revenues for Wrangler were $373,643, contributing significantly to total revenues[49] - U.S. wholesale revenues increased by 5% to $529,654 from $505,827 year-over-year[51] - International revenues decreased by 5% to $140,540 compared to $148,713 in the previous year[51] Profitability Metrics - Adjusted gross margin is expected to be 45.1%, an increase of 260 basis points compared to the prior year[2] - Adjusted EPS is now expected to be $4.83, representing a 9% increase compared to the prior year[2] - Adjusted operating income is expected to be $385 million, reflecting an 11% increase compared to the prior year[19] - Operating income increased by 15% to $98,321 in Q3 2024, compared to $85,482 in Q3 2023[37] - Total reportable segment profit rose by 18% to $121,108, with Wrangler profit increasing by 20% to $97,753[40] - Adjusted diluted earnings per share for the three months ended September 2024 was $1.26, compared to $1.05 in 2023[48] - Net income for the nine months ended September 2024 was $181,824, a 12% increase from $162,223 in the same period of 2023[39] - Net income for the trailing twelve months ended September 2024 was $250,595, an increase from $213,828 in the prior year[52] Cash Flow and Capital Management - Cash flow from operations is now expected to exceed $360 million, driven by accelerated earnings growth[22] - Cash provided by operating activities for the nine months ended September 2024 was $286,258, significantly up from $147,526 in 2023[39] - The Company repurchased $40 million of shares during Q3 2024[1] - The Company declared a quarterly cash dividend of $0.52 per share, a 4% increase compared to Q2 2024[14] - Cash and cash equivalents rose to $269,427 in September 2024, up from $77,828 in September 2023[38] - Total current assets increased to $1,066,227 as of September 2024, compared to $1,033,064 in September 2023[38] - Total liabilities stood at $1,296,196 as of September 2024, compared to $1,278,306 in September 2023[38] Expenses and Taxation - Selling, general and administrative expenses increased by 8% to $201,189 in Q3 2024 from $185,983 in Q3 2023[37] - Interest income surged by 208% to $2,965 in Q3 2024, compared to $964 in Q3 2023[37] - The company reported a 28% increase in income taxes for Q3 2024, totaling $16,225 compared to $12,697 in Q3 2023[37] - Interest expense increased by 7% to $11,178[40] - Restructuring and transformation costs for the trailing twelve months totaled $26.8 million, impacting net income with a corresponding tax effect of $6.6 million[54] - The effective income tax rate adjusted for restructuring costs was 15% for the trailing twelve months ended September 2024, down from 24% in the previous year[52] Investment and Returns - Adjusted return on invested capital (ROIC) improved to 29.7% in September 2024, up from 23.1% in September 2023[52] - The average invested capital for the trailing twelve months was $1,004,161, down from $1,078,393 in the previous year[52] - Other revenues surged by 90% to $3,744 from $1,974 year-over-year[51] - The gross margin for the three months ended September 2024 was 44.7%, up from 41.5% in 2023[48] - Corporate and other expenses increased by 31% to $26,307 for the three months ended September 2024[40]