Kontoor Brands reaffirms 2022 outlook, European business update
Greensboro, North Carolina-based denim group Kontoor Brands Inc. reaffirmed on Wednesday it expects to report 2022 revenue at a high single-digit percentage increase over 2021 of approximately $2.7 billion.
Ahead of management participation at the UBS Consumer Conference, Kontoor also provided greater detail on its first half 2022 outlook. For the first quarter of 2022, revenue is expected to be in the range of $650 to $660 million or flat to up low-single digits compared to last year. Meanwhile, GAAP EPS is expected to be in the range of $1.15 to $1.25.
Looking ahead, second quarter revenue is expected to be in the range of $640 million to $650 million, or increasing 30 percent to 32 percent compared to last year, while GAAP EPS is expected to be in the range of $1.25 to $1.35.
In light of recent events within the European region, the company also added that overall revenue should not be affected by its European business.
“As a global company, we work across borders every day. We take great pride in creating connections and strengthening communities. Taking care of each other is core to our purpose. On behalf of Kontoor, we condemn the recent unspeakable acts of violence on the people of Ukraine,” said president, CEO and chair of the board, Scott Baxter.
“We do not own or operate direct business in Russia or Ukraine. Third-party relationships in these countries are not material to Kontoor’s European business and is de-minimis to overall Kontoor revenue; however, we will continue to monitor the situation closely.”
Its international business represents approximately 25 percent of total Kontoor revenue. The company’s revenue in Europe is concentrated in developed markets such as France, Germany, Italy, Poland, Scandinavia, Spain and the United Kingdom.
In support of ongoing humanitarian efforts, the company will make a charitable donation through a global philanthropic organization. Kontoor employees in Europe have also donated clothing samples for ongoing relief efforts in Ukraine.
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