Kontoor Brands, Inc. (NYSE:KTB) Q1 2024 Earnings Call Transcript
Kontoor Brands, Inc. (NYSE:KTB) Q1 2024 Earnings Call Transcript May 2, 2024
Kontoor Brands, Inc. beats earnings expectations. Reported EPS is $1.16, expectations were $0.91. Kontoor Brands, Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Greetings. And welcome to the Kontoor Brands First Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Michael Karapetian, Vice President, Corporate Development, Strategy, and Investor Relations. Thank you, Michael. You may begin.
Michael Karapetian: Thank you, operator. And welcome to Kontoor Brands first quarter 2024 earnings conference call. Participants on today's call will make forward-looking statements. These statements are based on current expectations and are subject to uncertainties that could cause actual results to materially differ. These uncertainties are detailed in documents filed with the SEC. We urge you to read our risk factors, cautionary language, and other disclosures contained in those reports. Amounts referred to on today's call will often be on an adjusted dollar basis, which we clearly defined in the news release that was issued earlier this morning. Our outlook is presented on an adjusted dollar basis. Reconciliations of GAAP measures to adjusted amounts can be found in the supplemental financial tables included in today's news release, which is available on our website at kontoorbrands.com.
These tables identify and quantify excluded items and provide management's view of why this information is useful to investors. Unless otherwise noted, amounts referred to on this call will be in constant currency, which exclude the translation impact of changes in foreign currency exchange rates. Joining me on today's call are Kontoor Brands President, Chief Executive Officer and Chair, Scott Baxter, and Chief Financial Officer, Joe Alkire. Following our prepared remarks, we will open the call for questions. We anticipate this call will last about one hour. Scott?
Scott Baxter: Thanks, Mike. And thank you to everybody joining us on today's call. We are pleased with our better-than-expected start to the year. Compared to our outlook provided in February, we saw broad-based upside from revenue, gross margin, and earnings. Joe will unpack the details, but our relative strength in the quarter, combined with improving visibility, gives us confidence to raise our full year guidance. I will step through the highlights in a bit, but first let me start with the organizational announcements we made in March. As we discussed last quarter, we have commenced Project Genius to transform our organization. This multi-year project is focused on driving three things. First, create a global best-in-class multi-brand platform.
Second, simplify the organization to increase speed and efficiency. And third, free up investment capacity to accelerate growth and increase profitability. As part of these actions, Tom Waldron has been appointed COO. You've had a chance to hear from Tom during our year-end calls. He is an incredibly talented leader who has led the return to growth and strong profitability for Wrangler. From 2019 to 2023, Wrangler has grown revenue at a mid-single-digit CAGR and expanded reported profit margins by over 300 basis points. In his new role, Tom will amplify our strategic playbook across both brands to drive improvements throughout the organization, from our commercial and go-to-market teams to global operations. We have also elevated Jenni Broyles to EVP and Global Brands President of Wrangler and Lee and Ezio Garciamendez to EVP and Chief Supply Chain Officer.
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