×
40 679
Fashion Jobs
AVEDA
Aveda Advisor - 15 Hrs - Shops at Columbus Circle - New York,ny
Permanent · New York
SHOW MY LINE
Women's Luxury Ready-tO-Wear Production Manager
Permanent · NEW YORK
ESTÉE LAUDER COMPANIES
Latam E-Commerce Project Manager/Product Owner
Permanent · New York
MICHAEL KORS RETAIL INC
Sales Supervisor, Crabtree Valley, Raleigh nc
Permanent · Raleigh
GAP
General Manager - Lenox Square (Kids & Baby)
Permanent · Atlanta
GAP
General Manager - Northbrook Court
Permanent · Northbrook
GAP
General Manager- Stonebriar Mall
Permanent · Frisco
GAP
General Manager - Roseville Galleria
Permanent · Roseville
GAP
General Manager - Central Texas Marketplace
Permanent · Waco
GAP
Merchandise Planner - Boys - Outlet
Permanent · New York
GAP
Unassigned General Manager - Greater Nashville
Permanent · Nashville
ALICE AND OLIVIA
Sales Supervisor - Cabazon Outlet
Permanent · Cabazon
TARGET CORPORATION
Owned Brand Product Design Director, Pets
Permanent · MINNEAPOLIS
LA MER
Manager, Global Supply Chain Operations - Inventory
Permanent · New York
MAC
Business Development – Key Consumer Manager, Mac
Permanent · New York
H&M
Retail Flagship Visual Manager
Permanent · Chicago
JBCSTYLE
Art Director
Permanent · NEW YORK
JBCSTYLE
Sales Operations Coordinator
Permanent · NEW YORK
ESTÉE LAUDER COMPANIES
Manager, Solution Architect- Omni Retail
Permanent · New York
TOM FORD BEAUTY
Vice President, Marketing, Tom Ford Beauty North America
Permanent · New York
ESTÉE LAUDER COMPANIES
Category Insights Manager - Supply Chain
Permanent · New York
ESTÉE LAUDER COMPANIES
Senior Account Coordinator, Estee Lauder Travel Retail – Americas
Permanent · Los Angeles

Lee, Wrangler-maker Kontoor tops estimates on new savings

By
Reuters
Published
today Aug 9, 2019
Reading time
access_time 2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Kontoor Brands Inc beat expectations for quarterly profit on Thursday as the denim apparel maker’s efforts to cut costs post its spinoff from VF Corp paid off, sending shares up over 13%.


With revenue down 6% and profits almost 40%, executives from the maker of Lee and Wrangler jeans also said they were looking at withdrawing from unprofitable markets - Lee Jeans


Just months after completing its separation from Vans sneaker maker VF Corp, the company said its total costs and operating expenses had fallen about 5% in the second quarter as it streamlined supply chains and sourced materials for less.

With revenue down 6% and profits almost 40%, executives from the maker of Lee and Wrangler jeans also said they were looking at withdrawing from unprofitable markets if need be and would look at sourcing opportunities in new markets.

Its net income of 96 cents per share beat analysts’ estimates of 67 cents while adjusted net revenue of $602.4 million was around $10 million above forecasts, according to IBES data from Refinitiv.

“The restructuring and cost savings actions we’ve taken ... are paying off and are setting the foundation for improved profitability in the second half of 2019,” Chief Executive Officer Scott Baxter said in a statement.

The popularity of Lee in China has given Kontoor a strong base to launch Wrangler there next year but it has kept manufacturing spread out, allowing it to evade the risks of U.S.-China trade tensions and resulting tariffs.

It has manufacturing bases in Mexico, Bangladesh and the United States, allowing it to supply the U.S. market from outside China.

The company said it expected Wrangler sales, hit hard by the bankruptcy of Sears last October, to accelerate in the second half of the year, helped by a promotional kick from rapper Lil Nas X’s “Old Town Road” hit, which mentions the jeans.

“If you look at denim in the United States, the strong-holders are Levi’s and American Eagle because their messaging is very strong and speaks directly to the millennial consumers.... Jane Hali & Associates analyst Jessica Ramirez said.

“But there’s room for Lee and Wrangler to grow and capture an audience.”

© Thomson Reuters 2019 All rights reserved.