The American clothing provider Kontor Brands Inc. was able to exceed the market expectations in the final quarter of the 2024 financial year.
However, the prospects for the current year, which the parent company of the Wrangler and Lee brands presented on Tuesday, were behavioral. However, financial effects of the planned takeover of the Norwegian outdoor equipment Helly Hansen have not yet been taken into account in the current forecasts.
The group exceeds expectations in the fourth quarter
In the fourth quarter of last year, which was completed on December 28, the group turnover was $ 699.3 million (666.2 million euros), which corresponded to an increase of four percent compared to the same period in the previous year. The operational result grew by twelve percent to $ 84.3 million, but the exposed net profit fell by seven percent to $ 64.0 million (61.0 million euros) due to higher tax burdens.
In the entire financial year, sales reached a height of $ 2.61 billion and was therefore practically unchanged compared to the previous year. Operative profit increased by seven percent to $ 342.3 million, and the net result rose by six percent to $ 245.8 million.
Management expects further growth in the core business for 2025
For 2025, management in previous business areas expects sales growth by one to three percent to $ 2.63 to $ 2.69 billion. The profit per share that was adjusted for special effects, which was $ 4.89 last year, is also expected to increase $ 5.20 to $ 5.30. The effects of possible stocks and the takeover of Helly Hansen are still excluded. The analyst: Inside, more optimistic goals had expected.
The group is currently assuming that Helly Hansen will contribute an additional contribution of about $ 0.15 to adjust the adjusted profit per share in the current year. Possible synergy effects have not yet been taken into account. The prerequisite is that the acquisition will be completed in the course of the second quarter as is currently being planned.