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US denim pioneer Kontoor Brands raises annual outlook following strong Q2

Published: 2021-08-09

US denim bigwig Kontoor Brands, which owns Wrangler and Lee, has raised its annual outlook after a robust second quarter.

The company saw its Q2 revenue surge to US $ 491 million – that’s a rise of 41 per cent on a reported basis and 37 per cent in constant currency.

Notably, the adjusted revenue fell by 19 per cent when compared to the second quarter of 2019.

In a statement released to media, the denim stalwart said that the revenue soared due to strong digital performance, including own.com as well as digital wholesale.

While the revenue of own.com increased by 28 per cent during the quarter, the digital wholesale rose by 49 per cent.

Also, better performance across the US wholesale business helped the numbers improve in the said quarter.

However, noticeable gains in the second quarter were offset by closures of VF Outlet stores and transition to a new licensed business model in India.

Importantly, the company’s global revenue reached US $ 126 million, at a growth of 106 per cent on a reported basis and 87 per cent in constant currency. While revenue from China rose by 10 per cent (in constant currency), the same from Europe jumped by 254 per cent (in constant currency).

Brand-wise, Wrangler brand’s global revenue jumped to US $ 311 million at 24 per cent increase on a reported basis and 22 per cent in constant currency.

Lee brand’s international revenue soared to US $ 176 million at 105 per cent on a reported basis and 96 per cent in constant currency.

Increasing its outlook for rest of the year, Kontoor Brands has said that revenue is expected to increase in the mid-teens range, over 2020, between US $ 2.39 billion and US $ 2.42 billion.


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