About Kontoor Brands

Kontoor Brands, Inc. (Kontoor) operates as a global lifestyle apparel company, with a portfolio led by two of the world's most iconic consumer brands: Wrangler and Lee. The company designs, manufactures, procures, sells, and licenses apparel, footwear and accessories, primarily under the brand names Wrangler and Lee. The company's products are sold in the United States ('U.S.') through mass merchants, specialty stores, mid-tier and traditional department stores, company-operated stores and online, including digital marketplaces. The company's products are also sold internationally, primarily in the Europe, the Middle East and Africa ('EMEA'); the Asia-Pacific ('APAC'); and Non-U.S. Americas regions, through department, specialty, company-operated, concession retail and independently-operated partnership stores and online, including digital marketplaces. Kontoor is headquartered in the U.S. with a presence in over 70 countries. During 2023, the company sold approximately 149 million units of apparel across all brands. The company benefits from long-standing relationships with many of its customers who depend on its ability to replenish the company's high-volume products. Strategies The company's strategies are to enhance and accelerate the company's core U.S. wholesale business; diversify the company's product mix through category extensions; expand the company's reach around the globe; and elevate the company's direct connection with consumers through channel expansion. Business Segments The company's two reportable segments are Wrangler and Lee, which primarily include sales of branded products, along with various sub-brands and collections. Wrangler Wrangler offers denim, apparel and accessories for adults and children. The company offers multiple sub-brands and collections within the Wrangler brand to target specific consumer demographics and consumer end-users, including: 20X, Aura from the Women at Wrangler, Cowboy Cut, Premium Patch, Riggs Workwear, Rock 47, Rustler, Wrangler Retro, Wrangler Rugged Wear and Wrangler All Terrain Gear. Lee Lee is an iconic American denim and apparel brand. Lee collections include a uniquely styled range of jeans, pants, shirts, shorts and jackets for adults and children. The Lee brand delivers trend-forward styles with exceptional fit and comfort through innovative fabric solutions and advanced design technology. The Lee brand offers multiple sub-brands and collections, making it attractive for a broader consumer base, including: Lee101, Riders by Lee Indigo and Chic by Lee. Other Other includes sales and licensing of Rock & Republic, other company-owned brands and private label apparel. Rock & Republic is a premium apparel brand and is marketed to consumers as a modern and active lifestyle brand. The company distributes the brand in the U.S. by leveraging the company's retail and e-commerce relationships, as well as through the company-operated website at rockandrepublic.com. Distribution Channels and Customers The company's distribution channels include the U.S. Wholesale, Non-U.S. Wholesale and Direct-to-Consumer. The U.S. Wholesale The U.S. Wholesale channel is the company's largest distribution channel and accounted for approximately 72% of the company's net revenues in 2023. Within this channel, the company's Wrangler and Lee branded products are marketed and sold by mass and mid-tier retailers, specialty stores including western specialty retail, department stores, retailer-owned and third-party e-commerce sites and through licensees. This channel also includes revenues related to Rock & Republic products sold in the U.S. A portion of the company's U.S. Wholesale net revenue is attributable to digital sales from the company's wholesale partners' websites, third-party e-commerce platforms such as Amazon, and other pure-play digital retailers. Third-party e-commerce platforms and pure-play digital retailers are a growing and important portion of this channel. The company's mass merchant customers include national retailers such as Target and Walmart, as well as various regional retail partners. The company's mid-tier and traditional department store customers include national retailers, such as Kohl's, as well as other retail partners. The specialty store channel, which includes revenue from Wrangler Riggs Workwear and Wrangler Western branded products, consists primarily of national accounts, such as Boot Barn, Cavender's and Tractor Supply Company, as well as upscale modern specialty stores. The company fosters close and longstanding relationships with its wholesale customers, having partnered with each of the company's top three brick-and-mortar wholesale customers for over 30 years. In addition, the company engages in an active dialogue with many of its key wholesale customers and receive proprietary insights about how the company's products are performing on a timely basis. The company's brands' top U.S. Wholesale customers include Amazon, Boot Barn, Cavender's, Kohl's, Target and Walmart. In addition, a small portion of sales in the company's U.S. Wholesale channel are from domestic licensing arrangements where the company receives royalties based on a percentage of the licensed products' net revenues. Non-U.S. Wholesale The Non-U.S. Wholesale channel represents the majority of the company's international business and accounted for approximately 16% of the company's net revenues in 2023. Wrangler and Lee branded products are available in Canada and Mexico, the United Kingdom and continental Europe, the Middle East, China, and through licensees across Australia, Asia, Africa, Mexico, Central and South America, Europe and India. The majority of the Wrangler and Lee international product business is located in EMEA and APAC, where the company sells its products directly to its department store and specialty store wholesale customers, and indirectly through the company's distribution and license relationships. In Canada and Mexico, the company's products are marketed through mass merchants, department stores and specialty stores. Additionally, the company's Non-U.S. Wholesale channel includes non-U.S. sales on digital platforms operated by the company's wholesale customers, as well as sales in partnership stores located across EMEA, APAC and South America. Partnership stores are owned and operated by the company's licensees, distributors and other independent parties. They are retail locations selling the company's Wrangler and Lee branded products that have the appearance of Kontoor-operated stores, and as such represent an important vehicle for presenting the company's brands to international consumers. Similar to the U.S. Wholesale channel, the company uses proprietary insights from its wholesale customers to strategically refine its products and adjust the company's go-to-market approach. Geographically, the company's net revenue in EMEA is concentrated in developed markets such as France, Germany, Italy, Poland, Scandinavia, Spain and the United Kingdom. The company accesses the APAC market primarily through the company's business in China. In addition, a small portion of sales in the company's Non-U.S. Wholesale channel are from international licensing arrangements where the company receives royalties based on a percentage of the licensed products' net revenues. Direct-to-Consumer The company's Direct-to-Consumer channel accounted for approximately 12% of the company's net revenues in 2023 and represents sales of the company's products via its Wrangler and Lee branded full-price and outlet stores, online and via international concession arrangements. The Direct-to-Consumer channel allows the company to achieve the fullest expression of its brands by displaying the company's product lines in a manner that supports the brands' positioning, providing an in-store and online user experience that enables the company to address the needs and preferences of its consumers. The company has various company-operated full-price Wrangler and Lee branded retail stores, which are located in Asia, Europe and the U.S. They include mono-brand stores, which carry either Wrangler or Lee branded products, and dual-brand stores, which carry both Wrangler and Lee branded products. The company also has various company-operated premium outlet and clearance centers, primarily the company's Lee Wrangler Outlet and Lee Wrangler Clearance Center retail stores located in the U.S., as well as locations in Europe and Mexico. The company has various concession retail and outlet stores in Europe and Asia. Wrangler and Lee branded products are available through the company's own websites in 15 countries. Licensing Arrangements The company has licensing agreements in categories including jeanswear, casual apparel, workwear, belts, footwear, small leather goods, headwear, socks, home decor, luggage, bags, watches, eyewear and cold weather accessories. Design, Product Development and Innovation The company designs and develops products globally, with key functions in the U.S. and Hong Kong. The company has two primary selling seasons, Spring/Summer and Fall/Winter, although some product lines are offered more frequently. Manufacturing, Sourcing and Distribution The company's global supply chain organization is responsible for the operational planning, manufacturing, sourcing and distribution of products to the company's customers. The company has developed a high degree of expertise in managing the complexities associated with a global supply chain. During 2023, the company manufactured or sourced approximately 141 million units of finished goods inventory. The company's supply chain employs a centralized leadership model with localized regional expertise. Within the company's internal manufacturing facilities, the company innovates and design proprietary equipment to drive the company's production output and capabilities. The company focuses on engineering and efficiency, which provides an ongoing competitive advantage in the company's internal manufacturing facilities. The company leverages its manufacturing expertise in its sourcing operations, where the company has developed longstanding relationships with third-party contract manufacturers and distributors. Distribution Products are shipped from the company's contract manufacturers and internal manufacturing facilities to distribution centers around the world. The company directly operates its domestic distribution centers and the company carefully selects third-party logistic providers to partner with as needed in certain regions, primarily in EMEA and APAC. Additionally, the company's established long-term third-party distribution relationships ensure maximum capacity, connectivity, responsiveness and overall service coverage around the globe. In international markets where the company does not have brick-and-mortar or wholesale operations, the company's products are often marketed through the company's distributors, agents and licensees. Seasonality The company's operating results are generally subject to some variability due to seasonality, with net revenues typically being slightly higher during the back-to-school and holiday shopping seasons. This limited variation results primarily from the differences in seasonal influences on revenues between the company's Wrangler and Lee segments. Intellectual Property The company has registered its intellectual property in the U.S. and in other countries where the company's products are manufactured and/or sold. In particular, the company's trademark portfolio consists of over 8,100 trademark registrations and applications in the U.S. and other countries around the world, including the U.S. and foreign trademark registrations for the company's two key brands, Wrangler and Lee. History Kontoor Brands, Inc. was incorporated in North Carolina in 2018.