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Kontoor Brands Posts Strong Q4 Preliminary Results: What's More?
KTBKontoor(KTB) ZACKS·2025-02-20 19:20

Core Insights - Kontoor Brands, Inc. (KTB) reported strong preliminary results for Q4 fiscal 2024, with revenues, earnings, and cash flow exceeding expectations, indicating positive momentum heading into 2025 [1][2][14] Financial Performance - Total revenues for Q4 reached approximately 699million,a4699 million, a 4% increase from 670 million in Q4 fiscal 2023, and a 5% increase on a constant-currency basis [6] - Preliminary adjusted gross profit was 313million,upfrom313 million, up from 283 million the previous year, with an adjusted gross margin of 44.7%, reflecting a 160-basis-point improvement [7] - Adjusted earnings per share (EPS) were 1.38,a21.38, a 2% increase from the previous year, with robust growth of around 23% when excluding certain factors [8] - Cash flow from operations totaled 368 million for fiscal 2024, and year-end inventory decreased by 22% to 390million[9][10]StrategicInitiatives−Thecompanyattributesitsstrongperformancetostrategicinvestments,operationalefficiencies,andbrandstrength,particularlythroughProjectJeaniusandtheacquisitionofHellyHansen[2][11]−KontoorBrandsisfocusedonproductinnovation,marketexpansion,andsupply−chainoptimizationtodrivegrowth[11]−InvestmentsinProjectJeaniusaimtoenhanceoperationalefficiencyandunlock390 million [9][10] Strategic Initiatives - The company attributes its strong performance to strategic investments, operational efficiencies, and brand strength, particularly through Project Jeanius and the acquisition of Helly Hansen [2][11] - Kontoor Brands is focused on product innovation, market expansion, and supply-chain optimization to drive growth [11] - Investments in Project Jeanius aim to enhance operational efficiency and unlock 100 million in cost savings [11] - The company is also expanding its direct-to-consumer channels and leveraging data analytics to enhance customer engagement [12] Brand and Market Position - Kontoor Brands' portfolio includes iconic brands like Wrangler and Lee, which continue to gain market share through collaborations and refreshed brand positioning [13] - The acquisition of Helly Hansen aligns with the company's long-term vision to expand into high-performance apparel [13] - The company is investing in global supply-chain transformation to improve efficiency and speed to market [13] Stock Performance - Shares of Kontoor Brands rose 4.1% during the recent trading session, with a 23.7% increase over the past six months, outperforming the industry growth of 22.8% [3]