Kontoor Brands, Inc. reported strong financial results for its third quarter ended September 28, 2024, with revenue reaching $670 million, a 2% increase compared to the prior year. Adjusted earnings per share (EPS) was $1.37, representing a 12% increase over the prior year. The company's reported gross margin increased by 320 basis points to 44.7%.
Adjusted gross margin expanded by 150 basis points to 45.0%, driven by lower product costs and supply chain efficiencies. Inventory at the end of the third quarter decreased by 24% compared to the prior year, reaching $462 million. The company repurchased $40 million of common stock during the quarter, contributing to $68 million returned to shareholders in Q3 and $168 million year-to-date.
Kontoor Brands raised its full-year 2024 outlook, now expecting revenue of $2.60 billion, adjusted gross margin of 45.1%, adjusted operating income of $385 million, and adjusted EPS of $4.83. Cash from operations is now expected to exceed $360 million. CEO Scott Baxter attributed the strong results to execution, brand investments, and the Project Jeanius transformation program.
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