- Kontoor Brands press release ( NYSE: KTB ): Q2 GAAP EPS of $1.09 beats by $0.13 .
- Revenue of $614M (+25.1% Y/Y) misses by $10.46M .
- Updating its 2022 outlook : Revenue is now expected to increase approximately 6 percent compared to 2021, compared to prior guidance of up approximately 10 percent vs. estimated growth of 4.9% Y/Y. Revenue in the second half of 2022 is expected to be relatively flat compared to 2021.
- Gross margin is now expected to approximate 43.5 percent compared to adjusted gross margin of 44.6 percent achieved in 2021 and compared with prior guidance that was anticipated to be consistent with 2021.
- Adjusted SG&A is now expected to increase at a mid-single digit rate compared to adjusted SG&A in 2021, relatively consistent with revenue growth.
- Adjusted EPS is expected to be in the range of $4.40 to $4.50, compared to prior guidance of $4.75 to $4.85 vs. consensus of $4.19.
- Capital Expenditures are expected to be in the range of $35 million to $40 million, primarily to support manufacturing, distribution and information technology projects.
- The company expects an effective tax rate of approximately 20 percent in 2022, which compares to 21 percent in the prior outlook. Interest expense is expected to be in the range of $30 million to $35 million in 2022, compared to approximately $35 million in the prior outlook.
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Kontoor Brands reports mixed Q2 earnings; narrows FY22 guidance