Kontoor Brands, the company that owns jeans brands Wrangler and Lee, reported a 25 percent increase in sales in the second quarter of the year. For the three months ended July 2, revenue was $613.6 million compared to $490.8 million a year earlier.
This growth was primarily driven by the company’s US business, which reported a 40 percent increase in sales to US$510.2 million (€500.2 million).
Less encouragingly, international sales fell 18 percent to $103.3 million, with China posting a 50 percent drop due to ongoing Covid-19 restrictions.
By brand, Wrangler sales grew 34 percent to $417.9 million, while Lee sales grew 10 percent to $193.1 million. rose.
Net income was $62 million, up from $23.6 million a year earlier.
future challenges
Scott Baxter, CEO and Chairman of Kontoor Brands, told investors, “In a very dynamic macroeconomic environment, supply chain challenges and inflationary pressures increased over the quarter.”
He went on to say that these macroeconomic conditions “will remain challenging, particularly as retailers’ inventories rebalance and inflation weighs on overall demand.”
As a result of these challenges, Kontoor Brands has lowered its full-year outlook. The company now expects sales to grow by about 6 percent, compared to its previous estimate of about 10 percent.
The company is expecting adjusted earnings per share to be in the range of $4.40 to $4.50, down from a previous guidance of $4.75 to $4.85 up to 4.75 euros).
This article was previously published on FashionUnited.uk. Translation and editing: Barbara Russ