The following is a summary of the Kontoor Brands, Inc. (KTB) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Kontoor Brands reported a Q1 revenue decrease with a 4% decline for Wrangler and 9% decline for Lee due to US wholesale.

• Despite this, Wrangler's DTC business saw growth of 8% and Lee's tops business grew by 20%.

• Adjusted gross margins increased, owing to lower product costs and channel mix benefits.

• The company also returned $48 million to its shareholders in Q1, including $20 million in share repurchases.

• Cash from operations projections for the year are above $335 million.

• The full-year gross margin is expected at approximately 44.6% with an EPS between $4.70 and $4.80.

Business Progress:

• The momentum for both Wrangler and Lee brands remain strong, with successful efforts to diversify beyond denim bottoms.

• There's an increase in targeted investments into DTC and digital platforms for higher efficiency and stronger returns.

• The company has embarked on Project Genius, aimed at increasing organizational efficiency and profitability through restructuring.

• Expansion in Europe is expected due to potential trends.

• The company has a capital reinvestment strategy focusing on business growth and increased dividends.

• There has been successful expansion into new retailers and market share gained due to high-quality product production and marketing strategies.

• The company is expecting an acceleration in revenue from expansion at both existing and new customers, supported by significant investments in marketing and innovation for back-half channel launches.

More details: Kontoor Brands IR

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.