Kontoor Brands Q3 sales up despite drop in China
Kontoor Brands Inc. announced on Thursday revenue for the third quarter totalled $655 million, increasing 8 percent, driven by strength in U.S. wholesale and DTC, offsetting decreases in China revenues.
The owner of LeeWrangler
Growth in U.S. wholesale was augmented by continued strength in DTC, with U.S. own.com revenue increasing 11 percent.
Internationally, revenue was $149 million, a 4 percent decrease, with strength in DTC more than offset by a decline in wholesale. China decreased 23 percent, while Europe increased 4 percent during the three months ending September.
By brand, Wrangler brand global revenue was $445 million, a 9 percent increase, while Lee brand global revenue increased 5% to $208 million.
“In the third quarter, we delivered strong revenue growth and profitability that was ahead of our expectations, excluding the duty charge, reflecting the broad-based strength of our business. Supported by strategic investments in our brands, U.S. POS strength continued, driving further market share gains in core U.S. wholesale. And we delivered another solid quarter in DTC, a critical growth pillar of our diversified, accretive growth strategy,” said Scott Baxter, president, chief executive officer and chair of Kontoor Brands.
Looking ahead, Kontoor said full-year revenue is now expected to increase approximately 1 percent, compared to the prior outlook of a low-single digit percentage increase.
