Kontoor Brands, Inc. (NYSE:KTB) Q3 2023 Earnings Conference Call November 2, 2023 8:30 AM ET Company Participants Eric Tracy - VP, Corporate Finance and IR Scott Baxter - President, CEO and Chair Joe Alkire - CFO Conference Call Participants Mauricio Serna - UBS Bob Drbul - Guggenheim Brooke Roach - Goldman Sachs Will Gaertner - Wells Fargo Peter McGoldrick - Stifel Paul Kearney - Barclays Operator Greetings and welcome to the Kontoor Brands' Third Quarter 2023 Earnings Conference Call. At this time, all pa ...

Eric Tracy - VP, Corporate Finance and IR Scott Baxter - President, CEO and Chair Rustin Welton - CFO Bob Drbul - Guggenheim Will Gaertner - Wells Fargo Jim Duffy - Stifel Mauricio Serna - UBS Brooke Roach - Goldman Sachs Paul Kearney - Barclays Kontoor Brands, Inc. (NYSE:KTB) Q2 2023 Earnings Conference Call August 3, 2023 8:30 AM ET Conference Call Participants Company Participants Operator And then just following up on gross margin, again, like it seems like it's inflecting positive or the way you're tal ...

Kontoor Brands, Inc. (NYSE:KTB) Q1 2023 Earnings Conference Call May 4, 2023 8:30 AM ET Company Participants Eric Tracy - VP, Corporate Finance and IR Scott Baxter - President, CEO and Chair Rustin Welton - CFO Conference Call Participants Mauricio Serna - UBS Will Gardner - Wells Fargo Bob Drbul - Guggenheim Peter McGoldrick - Stifel Brooke Roach - Goldman Sachs Sam Poser - Williams Trading Greetings, and welcome to the Kontoor Brands First Quarter 2023 Earnings Conference Call. At this time, all participa ...

Revenue Performance - Net revenues increased by 6% to $2.6 billion in fiscal 2022, driven by growth in U.S. Wholesale and Direct-to-Consumer channels, despite a 2% unfavorable impact from foreign currency[181] - U.S. Wholesale revenues rose by 11%, accounting for 72% of total revenues, while Non-U.S. Wholesale revenues decreased by 8% due to a 7% unfavorable impact from foreign currency and COVID-19 restrictions in APAC[181] - Revenues in the Americas region increased by 13%, with a 12% increase in the U.S. Wholesale channel and growth in owned e-commerce sites[194] - Global revenues for the Lee brand decreased by 1%, with a 3% unfavorable impact from foreign currency[196] - Revenues in the APAC region decreased by 31%, driven by a decline in the India business and a 4% unfavorable impact from foreign currency[194] Profitability Metrics - Gross margin decreased by 160 basis points to 43.1%, primarily due to increased product and ocean freight costs from inflationary pressures and higher provisions for inventory losses[181] - Operating margin decreased to 13.8% from 14.5% in 2021, primarily due to increased product and ocean freight costs[196] - Total reportable segment profit increased by 4.7% to $442.2 million in 2022[200] - Net income increased by 26% to $245.5 million, reflecting improved business results[181] Strategic Initiatives - The company is focused on a multi-year strategic vision "Catalyzing Growth," which includes expanding its core U.S. Wholesale business and geographic expansion, particularly in China[178] - The company incurred $13.7 million in severance and employee-related benefits due to the relocation of its European headquarters to Geneva, Switzerland[178] Expenses and Cost Management - Selling, general and administrative expenses as a percentage of revenues decreased to 29.6% from 33.3%, attributed to lower ERP implementation costs and reduced retail store expenses[181] - Cash provided by operating activities decreased by $200.3 million to $83.6 million in 2022 compared to 2021[218] Shareholder Returns - The Company paid $103.7 million in dividends to shareholders during 2022[212] - The Company repurchased 1.5 million shares for $62.5 million under the share repurchase program during 2022[211] Financial Position and Liquidity - As of December 2022, the Company had $487.9 million available borrowing capacity under the Amended Revolving Credit Facility[210] - As of December 2022, the Company had $59.2 million in cash and cash equivalents, with ongoing monitoring of credit ratings of financial institutions[252] Taxation and Deferred Tax Assets - The effective income tax rate for 2022 was 23.1%, up from 20.1% in 2021, influenced by a net discrete tax expense related to deferred tax valuation allowances[186] - The Company has $25.7 million of gross deferred income tax assets related to operating loss carryforwards, with $23.0 million in valuation allowances against those assets[247] - The Company is subject to income taxes in over 50 jurisdictions, with potential changes in tax rates impacting its financial position[244] Market and Currency Risks - Approximately 21% of the Company's net revenues in 2022 were generated in international markets, exposing it to foreign currency exchange rate risks[255] - The company hedges up to 80% of its foreign currency exposures using foreign exchange forward contracts for periods of up to 20 months[257] - A hypothetical 10% change in foreign currency exchange rates at the end of 2022 would result in a change in fair value of hedging contracts of approximately $23.7 million[258] - The company is exposed to market risks for the pricing of cotton, synthetics, and other materials, and negotiates prices in advance when possible to manage these risks[260] Risk Management - The company does not engage in off-balance sheet financial arrangements that could materially affect its financial condition[226] - The company has established counterparty credit guidelines and only enters into derivative transactions with financial institutions that have 'A minus/A3' investment grade credit ratings or better[259] - The company is self-insured for a significant portion of its employee medical and workers' compensation exposures, while purchasing coverage from highly-rated commercial carriers for other risks[251] - The company actively manages its net foreign currency market exposures and may enter into derivative contracts to hedge certain foreign currency accounts payable and receivable transactions[256] Impairment Testing - Management evaluates estimates and assumptions related to impairment testing of long-lived assets, which could lead to material impairments if actual results differ from estimates[234] - The Company utilizes both income-based and market-based valuation methods for goodwill impairment testing, assessing future cash flows and market multiples[238] - The Company has not made material changes in the methodology used to evaluate impairment of property, plant, and equipment during 2022[234]

Kontoor Brands, Inc. (NYSE:KTB) Q4 2022 Earnings Conference Call February 28, 2023 8:30 AM ET Company Participants Eric Tracy - Vice President, Corporate Finance & Investor Relations Scott Baxter - President, Chief Executive Officer & Chair Tom Waldron - Co-Chief Operating Officer & Global Brand President, Wrangler Chris Waldeck - Co-Chief Operating Officer & Global Brand President, Lee Rustin Welton - Chief Financial Officer Conference Call Participants Jay Sole - UBS Bob Drbul - Guggenheim Will Gardner - ...

Kontoor Brands, Inc. (NYSE:KTB) Q3 2022 Earnings Conference Call November 3, 2022 8:30 AM ET Company Participants Eric Tracy - Vice President, Corporate Finance and Investor Relations Scott Baxter - Chair and Chief Executive Officer Rustin Welton - Chief Financial Officer Conference Call Participants Bob Drbul - Guggenheim Securities Mauricio Serna - UBS Will Gardner - Wells Fargo Brooke Roach - Goldman Sachs Paul Kearney - Barclays Operator Greeting and welcome to the Kontoor BrandsÂ' Third Quarter 2022 Ea ...

November 3, 2022 INSPIRING CONFIDENCE, EVERY DAY Kontoor Brands Reports Third Quarter 2022 Results; Updates Outlook for Full Year 2022 Q3'22 revenue of $607 million decreased 7 percent (5 percent in constant currency) compared to Q3'21 Q3'22 reported EPS of $0.90, adjusted EPS of $1.11 compared to Q3'21 reported EPS of $1.07, adjusted EPS of $1.28 2022 revenue is now expected to increase approximately 4 percent (6 percent in constant currency) compared to 2021 and prior guidance of increasing approximately ...

Kontoor Brands, Inc. (NYSE:KTB) Q2 2022 Earnings Conference Call August 4, 2022 8:30 AM ET Company Participants Eric Tracy - Vice President, Corporate Finance and Investor Relations Scott Baxter - Chair and Chief Executive Officer Rustin Welton - Chief Financial Officer Conference Call Participants Mauricio Serna - UBS Bob Drbul - Guggenheim Securities Paul Kearney - Barclays Brooke Roach - Goldman Sachs Will Gardner - Wells Fargo Operator Good day, ladies and gentlemen and welcome to the Kontoor BrandsÂ' Q ...

Kontoor Brands, Inc. (NYSE:KTB) Q1 2022 Earnings Conference Call May 5, 2022 8:30 AM ET Company Participants Eric Tracy - Senior Director-Investor Relations Scott Baxter - President, Chief Executive Officer & Chair Rustin Welton - Chief Financial Officer Conference Call Participants Jay Sole - UBS Adrienne Yih - Barclays Brooke Roach - Goldman Sachs Bob Drbul - Guggenheim Securities Sam Poser - Williams Trading Peter McGoldrick - Stifel Operator Greetings. Welcome to the Kontoor Brands Q1 2022 Earnings Call ...

Kontoor Brands, Inc. (NYSE:KTB) Q4 2021 Earnings Conference Call March 1, 2021 8:30 AM ET Company Participants Eric Tracy – Vice President-Corporate Finance and Investor Relations Scott Baxter – President, Chief Executive Officer and Chair of the Board Tom Waldron – Global Brand President-Wrangler Chris Waldeck – Global Brand President of Lee Rustin Welton – Chief Financial Officer Conference Call Participants Jay Sole – UBS Brooke Roach – Goldman Sachs Adrienne Yih – Barclays Sam Poser – Williams Trading O ...