Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this release include, but are not limited to: risks associated with the Company's spin-off from VF Corporation, including the risk of disruption to our business in connection with the spin-off and that the Company could lose revenue as a result of such disruption; the risk that the Company does not realize all of the expected benefits of the spin-off; the risk that the spin-off will not be tax-free for U.S. federal income tax purposes; the risk that there will be a loss of synergies from separating the businesses that could negatively impact the balance sheet, profit margins or earnings of the Company; the risk of significant costs to the Company to perform certain functions (currently being performed by VF Corporation for the Company on a transitional basis) following the transition period; and the risk associated with significant restrictions on the Company’s actions in order to avoid triggering tax-related liabilities. Adjusted EBITDA margin increased 470 basis points to 18.8 percent of revenue. FY19 highlights of Kontoor Brands’ results The company’s annual revenue decreased 8 percent to 2.55 billion dollars on a reported basis, down 6 percent in constant currency. These adjusted presentations are non-GAAP measures. See “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures" within the following pages. These constant currency performance measures should be viewed in addition to, and not as an alternative for, reported results under GAAP. Wrangler U.S. revenue increased 2 percent, driven by increases in digital, strength in the Western business and the timing shift into the third quarter. We use constant currency information to provide a framework to assess how our business performed excluding the effects of changes in the rates used to calculate foreign currency translation. And, importantly, our robust cash flow generation allowed us to continue to aggressively pay down debt, while also providing the opportunity to reinstate a quarterly dividend in the fourth quarter of 2020, a key tenet of our total shareholder return model.”. Market Data copyright © 2021 QuoteMedia. The company said in a statement that revenue declines during the quarter were primarily driven by Covid-19 impacts, offset in part by increases in digital, new business development wins, and a 33 million dollars shift in the timing of U.S. Wrangler shipments from the second quarter to the third quarter of 2020. Operating income on a reported basis was $83 million, increasing 167 percent compared with the prior year. (a) Refer to constant currency definition on the following pages. Please enable JavaScript in your web browser. Terms of Use. International revenue was $128 million, down 30 percent on a reported basis and down 31 percent in constant currency, primarily driven by COVID-19 impacts. Kontoor Brands Inc ... Lee brand global revenue declined 8% compared with the same quarter in 2019. Adjustments primarily represent costs associated with the global ERP implementation and information technology infrastructure build-out. Kontoor Brands revenues drop by 9 percent, expects recovery in Q4 For the third quarter, Kontoor Brands, Inc., having Wrangler and Lee under its portfolio, reported revenue decrease of 9 percent to 583 million dollars, on a reported and constant currency basis. These transactions included sales of VF-branded products at VF Outlet™ stores, as well as sales to VF for products manufactured in our plants, use of our transportation fleet and fulfillment of a transition services agreement related to VF’s sale of its Nautica® brand business in mid-2018. It was spun off from the VF Corporation in May 2019, and markets denim clothing under the Lee, Wrangler and Rock & Republic brand names. Company Profile. The impacts of COVID-19 were in part offset by growth in Digital, with U.S. digital wholesale increasing 68 percent and U.S. owned.com increasing 43 percent, as well as new business development wins and the previously mentioned timing shift. On an adjusted basis, operating income was $103 million, increasing 24 percent from $83 million in the same period in 2019. Kontoor Brands (KTB) Reports Q2 Loss, Tops Revenue Estimates Kontoor (KTB) delivered earnings and revenue surprises of 31.25% and 29.79%, respectively, for the quarter ended June 2020. The $32.6 million impairment charge resulted in a tax impact of $(7.4) million for the three months ended September 2019. While management believes that these non-GAAP measures are useful in evaluating the business, this information should be considered supplemental in nature and should be viewed in addition to, and not as an alternate for, reported results under GAAP. Adjustments during 2020 primarily represent costs associated with the Company’s global ERP implementation and information technology infrastructure build-out. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Condensed and Consolidated Balance Sheets, Prepaid expenses and other current assets, Condensed Consolidated and Combined Statements of Cash Flows. Kontoor Brands also operates the VF Outlet chain of factory outlet stores. Wrangler brand global revenue decreased to 347 million dollars, a 6 percent decline on a reported and constant currency basis. Chart. Non-GAAP Financial Information: The financial information above has been presented on a GAAP basis and on an adjusted basis. Additional information regarding adjusted amounts is provided in notes to the supplemental financial information included with this release. Fourth quarter adjusted SG&A is expected to increase year-over-year, driven by strategic decisions to amplify investments in demand creation and DTC in support of both the fourth quarter and long-term revenue. More information on potential factors that could affect the Company's financial results are described in detail in the Company’s most recent Annual Report on Form 10-K and in other reports and statements that the Company files with the SEC. Lee® brand global revenue decreased to $214 million, down 8 percent on a reported and constant currency basis, driven primarily by COVID-19 impacts. Net Debt - This release refers to “net debt” which represents total long-term debt, including current portion, less cash and equivalents. Kontoor Brands is a global lifestyle apparel company, with a portfolio of some of the world's most iconic denim brands: Wrangler®, Lee®, 15,000 employees globally and $2.5 billion in annual revenue. Management believes this information is useful to investors to facilitate comparison of operating results and better identify trends in our businesses. “Investments in our brands, people and partnerships drove significant sequential top line improvement, while restructuring, quality-of-sales initiatives and accretive mix shifts supported solid gross margin increases. State of Alaska Department of Revenue lowered its position in Kontoor Brands, Inc. (NYSE:KTB) by 16.7% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. KONTOOR BRANDS, INC. Condensed Consolidated and Combined Statements of Operations (Unaudited) Three Months Ended. Zacks Equity Research, Zacks GREENSBORO, N.C.--(BUSINESS WIRE)-- Kontoor Brands, Inc. (NYSE: KTB), a global lifestyle apparel company, with a portfolio led by two of the world’s most iconic consumer brands, Wrangler® and Lee®, today reported financial results for its third quarter ended September 26, 2020. Kontoor Brands Inc. KTB, +0.10% stock slipped 2.3% in Thursday premarket trading after the denim company reported a third-quarter revenue miss. (c) Represents an impairment charge recorded during the third quarter of 2019 related to the Rock & Republic® trademark. Business Segment Information – Constant Currency Basis (Non-GAAP). Many of the foregoing risks and uncertainties will continue to be exacerbated by the COVID-19 pandemic and any continued worsening of the global business and economic environment as a result. Kontoor Brands Inc. KTB, -2.67% shares rose 3.5% in Thursday premarket trading after the denim company reported second-quarter revenue that exceeded expectations. Do the numbers hold clues to what lies ahead for the stock? Selling, General & Administrative (SG&A) expenses were $175 million on a reported basis. Strong cash generation is expected to support continued aggressive debt paydown during the fourth quarter of 2020. Kontoor Brands, Inc. (NYSE: KTB), a global lifestyle apparel company, ... Lee® brand global revenue decreased to $183 million, a 24 percent decline on a reported and constant currency basis. Please enable JavaScript This website requires JavaScript to work correctly. And Consolidated Balance Sheets, Prepaid expenses and other current assets, Condensed Consolidated and Combined statements cash. Company from translating its foreign revenues and expenses into U.S. dollars accordance GAAP. 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