The company generated $613.6 million in revenue in the quarter ending July 2, which was considerably higher than the $490.8 million it reported a year ago.
The increase in revenue was primarily driven by an uptick in sales in the U.S. market, where the company saw its revenue climb by 40% to $510.2 million.
While the company enjoyed success in the U.S. market, its international revenue declined by 18% to $103.3 million as strict lockdowns in China resulted in a 50% decline in the market, FashionUnited reported.
Looking at the company’s performance by brand, Wrangler reportedly saw its revenue grow by 34% to $417.9 million, whereas Lee’s revenue reached $193.1 million, marking a 10% increase.
Overall, the company’s net income increased more than 2.5 times to $62 million, up from $23.6 million last year.
In the year’s second half, the company is now projecting a 6% increase in revenue, which would be lower than the 10% it had previously estimated due to macroeconomic challenges.
“In a highly dynamic macroeconomic environment, supply chain challenges and inflationary pressures accelerated during the quarter,” said Kontoor Brands CEO Scott Baxter.
Baxter added that these macro conditions “will remain challenging, particularly as retailer inventories are rebalanced, and inflation weighs on overall consumer demand.”
