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Kontoor Brands, Inc.(KTB), the global apparel compan y known for its iconic brands such as Wrangler and Lee, has released its unaudited consolidated financial statements for the first quarter of fiscal year 2023. The company reported a net income of $66.3 million for the quarter, along with total revenues of $667.1 million. Let's take a closer look at the financial data to understand the performance of Kontoor Brands during this period.
Consolidated Balance Sheets
As of March 2023, Kontoor Brands reported total assets amounting to $1.64 billion, an increase from $1.58 billion in December 2022. Current assets stood at $1.04 billion, with cash and cash equivalents amounting to $52.7 million, compared to $59.2 million in December 2022.
Consolidated Statements of Operations
For the three months ended March 2023, Kontoor Brands generated net revenues of $667.1 million, slightly lower compared to the same period in 2022 when it recorded $679.7 million in revenue. The company's cost of goods sold amounted to $380.4 million, and selling, general, and administrative expenses reached $191.8 million, resulting in an operating income of $94.9 million for the quarter.
Net Income and Earnings Per Share
Kontoor Brands reported a net income of $66.3 million for the first quarter of fiscal year 2023. The earnings per common share were $1.19 on a basic basis and $1.16 on a diluted basis. The weighted average shares outstanding were 55.6 million on a basic basis and 56.9 million on a diluted basis.
Consolidated Statements of Comprehensive Income
In addition to the net income, Kontoor Brands reported other comprehensive income of $11.7 million for the quarter. This includes gains from foreign currency translation and derivative financial instruments, partially offset by losses from defined benefit pension plans.
Consolidated Statements of Cash Flows
The company's operating activities resulted in a net cash outflow of $12.6 million for the first quarter of fiscal year 2023. This outflow was primarily driven by changes in operating assets and liabilities, including a decrease in inventories and an increase in accounts payable. Kontoor Brands invested $11.8 million in capital expenditures and capitalized computer software during the quarter. The financing activities provided a net cash inflow of $17.0 million, which included borrowings under the revolving credit facility and repurchases of common stock.
During the first quarter of fiscal year 2023, Kontoor Brands' total equity increased to $299.3 million. This growth was influenced by net income and stock-based compensation, partially offset by dividends paid on common stock.
Kontoor Brands, Inc. had a solid start to fiscal year 2023, with a net income of $66.3 million and revenue of $667.1 million. Despite the ongoing challenges in the global market, the company's financial position and performance indicate resilience and stability. As the year progresses, stakeholders will be closely monitoring the company's strategies and actions to maintain growth and profitability.