Kontoor Brands, Inc., a global lifestyle apparel company, reported its second-quarter financial results for 2023. While the Q2'23 revenue remained flat compared to the same period in 2022 at $616 million, reported gross margin declined by 290 basis points to 40.6 percent, and adjusted gross margin decreased by 250 basis points to 41.0 percent compared to Q2'22. The reported EPS for Q2'23 was $0.64, and adjusted EPS was $0.77, down from $1.09 in Q2'22, including a one-time discrete tax charge of $0.09.

Notably, inventory increased by 17 percent over Q2'22, showing improvement from the previous quarter's 52 percent YoY increase. In the full-year outlook, FY'23 revenue is expected to increase at a low-single digit percentage compared to FY'22, with adjusted gross margin forecasted to be between 43.5 percent and 44.0 percent. Adjusted EPS is projected to range from $4.55 to $4.75. Additionally, the company plans to reduce inventory in Q3'23 and expects further reductions in Q4'23.

Scott Baxter, President, Chief Executive Officer, and Chair of Kontoor Brands, expressed satisfaction with the Q2 results, stating that investments in their brands have led to continued share gains in the U.S. wholesale business and accretive growth in DTC and international markets. Restructuring actions were also taken to drive efficiencies and fund strategic investments in key growth areas like talent, innovation, technology, and demand creation.

While the company anticipates macroeconomic pressures in the second half of 2023, they are confident in their ability to align shipments better with POS in the U.S., indicating outsized growth in Q3 revenue relative to their full-year guidance. The focus remains on diversified growth across channels, categories, and geographies to ensure sustained, profitable growth.

The financial report also provides a breakdown of the revenue performance by region and brand. DTC and international markets have shown strength, with China witnessing a significant increase in both wholesale and DTC for Wrangler and Lee brands.

The company's balance sheet and liquidity are stable, with cash and cash equivalents of $82 million and long-term debt of approximately $0.8 billion as of July 1, 2023. Furthermore, the Board of Directors has declared a regular quarterly cash dividend of $0.48 per share, payable on September 18, 2023.

Kontoor Brands is proactively managing its inventory, which is expected to decline in Q3'23 compared to the previous year, with further reductions planned in Q4'23.

Looking ahead, the company remains confident in its strategy and expects to invest in brands and capabilities to drive long-term, profitable revenue growth while anticipating accelerated cash generation as inventory normalizes in 2023. The outlook includes mid-single digit percentage growth in adjusted SG&A, improvements in gross margin driven by geographic and DTC mix, and continued investments in DTC and demand creation.

The financial report demonstrates Kontoor Brands' commitment to navigating market challenges, driving growth, and maintaining a strong financial position as they head into FY'24.

In a groundbreaking move towards a more sustainable and circular footwear industry, Fashion for Good has joined forces with major brand partners adidas, Inditex, Target, and Zalando, along with footwear recycling innovator FastFeetGrinded. The aim is to test and validate an innovative footwear recycling process that will promote the adoption of recycled materials in the footwear manufacturing sector.

Understanding the Need for Sustainable Recycling Technologies

Fashion for Good's Managing Director, Katrin Ley, emphasizes the significance of this project as a first-of-its-kind initiative in the footwear industry. The collaboration seeks to unravel the potential of sustainable recycling technologies and infrastructures that are crucial for accelerating the transition towards a circular future. By fostering collaborative partnerships, the initiative lays the foundation for scalable solutions to address the pressing environmental challenges faced by the fashion industry.

FastFeetGrinded's Unique Capability

FastFeetGrinded brings a distinctive capability to the table with its ability to deconstruct any type of pre- and post-consumer shoe into macro-components. These macro-components are then ground down into smaller, high-purity granulates, which serve as valuable raw materials for repurposing.

Driving the Recycling Revolution

The collaborative pilot involves diverting pre- and post-consumer footwear to FastFeetGrinded, where they will be transformed into various new material granulates. These granulates will be further utilized by FastFeetGrinded's extensive network of supply chain partners to create output products like outsoles, midsoles, and flip flops. The brands involved will meticulously assess the quality and purity of these products, showcasing the immense potential of FastFeetGrinded's footwear recycling technology and setting the stage for widespread adoption.

FastFeetGrinded's Crucial Role

As the demand for raw materials is projected to triple by 2050, there is an urgent need to reduce reliance on virgin resources. FastFeetGrinded, as a key recycling innovator, plays a vital role in providing the fashion industry with secondary raw materials, meeting the rising market demand, and complying with regulatory requirements for recycled content. The company's current 4000 square meter facility is already addressing this demand, with plans for global expansion underway.

With Fashion for Good's strategic partnership with leading brands and the expertise of FastFeetGrinded, the industry takes a significant step towards a more sustainable and circular future, where recycling and repurposing are at the forefront of footwear production. The project serves as a beacon of hope for reducing waste and minimizing the fashion industry's environmental footprint.

A new market research report titled "Lingerie Market Report (2023-2028)" reveals that the global lingerie market is estimated to be worth USD 82.28 billion in 2023, with a projected compound annual growth rate (CAGR) of 8.02% during the forecast period. 

The innerwear and lingerie industry has witnessed robust growth in recent years, driven by consumers' increasing focus on both style and comfort, influenced by media and advertising. Lingerie is now perceived as a fashion product that enhances body features rather than just a necessity. 

Brands are actively expanding their product portfolios through new brands, mergers, acquisitions, and innovations. The global lingerie market is highly competitive and fragmented, with key players operating across different regions and offering diverse product lines. 

These industry leaders are investing in new materials and design technology to cater to evolving consumer preferences. Some of the major players dominating the global lingerie market in 2023 include Hansbrands Inc., Jockey International Inc., Victoria's Secret & Co., Triumph International, MAS Holdings, Berkshire Hathaway Inc., Zivame, PVH Corp., Aimer Group, and Wacoal Holdings Corp. 

Aggressive marketing and influential endorsements have become essential for market players to adapt to the rapidly changing industry landscape. Consumers tend to connect more with brands when endorsed by their favorite celebrities, leading to potential market growth. The Asia-Pacific region holds the largest consumer base for lingerie, driven by factors like increasing e-commerce, rising disposable incomes, and changing consumer preferences. 

Manufacturers are introducing gender-fluid, body-inclusive, and vegan variants to cater to sustainability-conscious customers. Recent developments in the lingerie market include Victoria's Secret & Co.'s acquisition of Adore Me Inc., Triumph International's launch of a new brand, Triumph, and MAS Holdings' partnership with ByondXR to create virtual showrooms for an enhanced retail experience. 

The comprehensive Mordor Intelligence market research report serves as a valuable resource for start-ups, industry players, investors, researchers, consultants, and business strategists seeking to understand and navigate the dynamic lingerie industry.

India-based end-to-end bedding solutions company, Indo Count has aligned its journey for climate action by joining the global campaign led by SBTi (Science Based Target Initiatives). As per a Textile Value Chain report, Science-based targets specify how much and how quickly companies need to reduce their greenhouse gas emissions. The Science Based Targets initiative supports the setting up of science-based targets to boost companies’ competitive advantage in the transition to the low-carbon economy. The initiative  is a collaboration between CDP, World Resources Institute (WRI), the World Wide Fund for Nature (WWF), and the United Nations Global Compact (UNGC).

Indo Count Industries has set a target for GHG emission reduction as per SBTi methodology to meet the goals of the Paris Agreement in the category of limiting global warming to well below 2°C. Approved by SBTi, these goals will help Indo Count reduce emissions by following sustainable practices across the supply chain and all manufacturing units across the company aligned with the SBTi guidelines.

A pioneer in spearheading sustainability, Indo Count Industries is highly focused on its ESG activities and has been working on integrating UNGC’s Principles of Sustainable Development Goal (SDG) into the organizational culture and ensuring the building of a greener sustainable future.