Kontoor Brands delivered a strong fourth quarter and full-year 2024 performance, with Q4 revenue increasing 4% to $699 million (5% on a constant currency basis), driven by growth in U.S. wholesale and global direct-to-consumer sales. Adjusted EPS increased 2% to $1.38, while gross margin expanded 160 basis points to 44.7%. Inventory declined 22% year-over-year, reflecting improved operational efficiencies.

For the full year, revenue remained stable at $2.61 billion, while adjusted EPS grew 10% to $4.89. Adjusted gross margin expanded 260 basis points to 45.1%, supported by lower product costs and supply chain efficiencies. The company returned $198 million to shareholders through dividends and share repurchases.

Looking ahead to 2025, Kontoor expects revenue growth of 1-3%, adjusted operating income growth of 5-7%, and adjusted EPS in the range of $5.20 to $5.30. The company projects operating cash flow to exceed $300 million, reinforcing its strong liquidity position.

source: Kontoor Brands, February 25, 2025.