- Prachi Singh
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Announcing initial full year 2019 outlook for its recently separated
jeanswear business – Kontoor Brands, VF Corporation has said that
revenue is expected to exceed 2.5 billion dollars, reflecting a
mid-single-digit decline compared with full year 2018 adjusted revenue. In
line with prior expectations, VF added that revenue for the three months
ended March 30, 2019, is expected to decline at a mid-single-digit rate,
consistent with the full year outlook. Adjusted EBITDA is expected to range
between 340 million dollars and 360 million dollars, reflecting a
mid-single-digit to low double-digit decline compared with 2018 adjusted
EBITDA.
VF added that the company’s 2019 revenue outlook includes an approximate
1 to 2 percentage point negative impact from foreign currency exchange
rates. Excluding the negative impact of foreign currency exchange rates,
impacts of customer bankruptcies, and strategic business exits, full year
2019 adjusted revenue is expected to be relatively consistent with 2018
adjusted revenue. The majority of the anticipated decline in full year 2019
adjusted EBITDA, VF said, is the result of an expected decline in adjusted
EBITDA for the three months ended March 30, 2019. The customer bankruptcies
are also expected to negatively impact full year 2019 adjusted EBITDA.
Kontoor Brands’ initial 2020 to 2021 outlook includes revenue increase
at a low single-digit compound annual growth rate (CAGR) over the period,
adjusted EBITDA increase at a mid-single-digit CAGR over the period.
Picture:Facebook/Wrangler Denims
