The US fashion and lifestyle company Kontoor Brands, Inc., which owns the brands Wrangler, Lee and Rock & Republic, reports a four percent increase in sales for the first quarter of 2022 compared to the same period last year to USD 680 million. At the same time, the company is correcting the forecast for the full year: Sales of more than 2.7 billion US dollars are now expected for 2022, which corresponds to an increase of about ten percent compared to 2021. It was originally assumed that the increase would be in the high single digits. The increase in sales was primarily driven by strength in online retail, as well as continued positive trends in US wholesale business and solid performance in international markets. Compared to the first quarter of 2021, own.com’s global revenue increased 38 percent and digital wholesale increased 24 percent.
Online trade has increased significantly
In the home market of the USA, sales amounted to 507 million US dollars and increased by four percent compared to the previous year. Gains were driven by wholesale growth, including new business developments, and strength in the digital business, with US own.com revenue up 43 percent and digital wholesale up 37 percent compared to the first quarter of 2021.
International sales were $173 million, up 6 percent from the same period last year. Compared to the first quarter of 2021, sales in China increased 3 percent on a reported basis, and up 1 percent on a currency-neutral basis, while the European business grew 11 percent on a reported basis, and 19 percent on a currency-neutral basis.
Wrangler grew the most internationally
Broken down by the two brands, the following picture emerges:
Worldwide, the Wrangler brand generated sales of $412 million, up 3 percent. Wrangler US sales were up 2 percent year over year, with strengths in digital, western and workwear. Comparisons to Q1 2021 were negatively impacted by timing shifts due to North American ERP implementation. Wrangler’s international sales increased 14 percent on a reported basis and 20 percent at constant currencies compared to the first quarter of 2021.
Global sales for the Lee brand were $264 million, up 6 percent from the same period last year. Lee US revenue increased 9 percent year-over-year, driven by continued strong demand and increases in digital. Here, too, the comparison with the first quarter of 2021 was affected by time shifts due to the North American ERP implementation. Internationally, Lee increased sales by 2 percent and by 4 percent at constant exchange rates.
Other global sales were $3 million, an increase of 11 percent over the same period last year.