US' Kontoor Brands expects revenue to be nearly $2.7 billion in 2022

In the first quarter of fiscal 2022, revenue is expected to be in the range of $650 million to $660 million, or flat to up low-single digits compared to last year. The second quarter revenue is likely to be in the range of $640 million to $650 million, or increasing 30 per cent to 32 per cent compared to last year.

2021 was affected by various factors including the ERP timing shifts, as well as temporary COVID shutdowns and supply chain disruptions that resulted in quarter-to-quarter volatility. These factors will have an impact on year-over-year growth rates on a quarterly basis but are not expected to impact the full year. The company expects revenue dollars to reflect normalising seasonality in 2022, more consistent with its 2019 quarterly cadence, Kontoor Brands said in a press release.

In light of recent events within the European region, the company does not operate any direct or owned business in Russia or Ukraine. A small number of third-party distributors and licensees operate in these countries; this business is not material to Kontoor’s European revenue and is de-minimis to total Kontoor revenue.

While the company does not disclose European regional revenue, its International business represents approximately 25 per cent of total Kontoor revenue; China represents approximately 8 per cent of total Kontoor revenue; the company also does business in Canada, Latin America and other Asian countries. The company’s revenue in Europe is concentrated in developed markets such as France, Germany, Italy, Poland, Scandinavia, Spain and the United Kingdom.

In support of ongoing humanitarian efforts, the company will be making a charitable donation through a global philanthropic organization. Kontoor employees have also come together in Europe to donate clothing samples for the ongoing relief efforts related to Ukraine, the release added.

“As a global company, we work across borders every day. We take great pride in creating connections and strengthening communities. Taking care of each other is core to our purpose. On behalf of Kontoor, we condemn the recent unspeakable acts of violence on the people of Ukraine,” stated president, CEO and chair of the board, Scott Baxter.

“We do not own or operate direct business in Russia or Ukraine. Third-party relationships in these countries are not material to Kontoor’s European business and is de-minims to overall Kontoor revenue; however, we will continue to monitor the situation closely. We offer our continued thoughts and support for the Ukrainian people, and all people, impacted by these tragic events,” added Baxter.

ALCHEMPro News Desk (RR)