Kontoor Brands has launched its multi-year initiative Project Jeanius aimed to improve profitability, expecting to result in a $50 million to $100 million gross profit improvement.
“This is one of the most important steps we have taken as a public company and will transform our organization from the legacy structure required at the spin to a best-in-class global multi-brand platform, while unlocking significant sources of capital,” said Kontoor Brands president, CEO, and chair Scott Baxter.
The company anticipates the project to simplify and transform processes and systems, focusing on optimizing the supply chain, reducing operational complexity, and integrating the business across global shared services.
The announcement came along with the company reporting its annual net income fell 6 per cent to $231 million and net revenue slid 1 per cent to $2.61 billion. Gross margin went down to 41.7 per cent.
US revenue declined 1 per cent to $2.06 billion while international revenue dipped 2 per cent to $547 million.
The Wrangler brand’s global revenue stood flat at $1.75 billion while the Lee brand’s decreased 4 per cent to $843 million.
For this year, the company forecasts revenue to range between $2.57 billion and $2.63 billion, reflecting a decrease of 1 per cent to an increase of 1 per cent.
“Although we anticipate the operating environment will remain challenging over the near term, we enter 2024 from a position of strength,” said Baxter.
