Wrangler drives better-than-expected growth for Kontoor Brands

(Source: Wrangler/Facebook)

Kontoor Brands has reported an uplift in sales for the third quarter, driven by positive performance of the Wrangler brand.

The company achieved revenue of $670 million for the quarter ended September 28, up 2 per cent year on year. US sales grew 5 per cent to $530 million, while international sales dropped 5 per cent to  $141 million.

Wrangler was the hero for the period with revenue up 4 per cent to $464 million, while Lee saw a 3 per cent decrease in sales to $202 million.

Scott Baxter, president, CEO and chair of Kontoor Brands, said the results exceeded expectations thanks to “strong execution and business fundamentals”.

“The investments in our brands continue to drive market share gains, expanded distribution, category growth and new innovation platforms,” he added.

On the bottom line, operating income soared 15 per cent to $98.3 million, while net income increased 19 per cent to $70.5 million.

The company has raised its full-year outlook and expects revenue of $2.6 billion, representing a 4 per cent increase. It also anticipates the growth momentum to continue into next year, driven by continued market share gains, category expansion and new distribution.

“Fueled by our Jeanius transformation program, momentum for the business is building, supported by increased investment capacity and capital allocation optionality that position us to deliver strong returns for stakeholders in the years ahead,” said Baxter.

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