Kontoor Brands, the parent company of denim brands Lee and Wrangler, announced a dip in revenues for Q1 2023. The company reported a 2% decrease in revenue to $667 million, with the international market weighing down the overall results due to the ongoing impact of Covid-policy changes in China.

International revenues fell by 14% to $149 million, while U.S. revenue for the quarter was $518 million, increasing by 2% over the same period in the previous year.

The results were mixed for the individual brands, with global revenue for the Wrangler brand growing by 3% to $423 million, while Lee brand revenues fell by 9% to $241 million. Despite the challenges, Kontoor Brands expressed confidence in the company's diversified growth strategy and its ability to generate sustained, profitable growth over time. Company also reaffirmed the 2023 outlook despite macroeconomic pressures that are expected to weigh on consumer demand in the second half of the year.

Looking ahead, Kontoor Brands expects fiscal 2023 revenue to increase at a low-single-digit percentage over 2022, with relatively balanced performances in the first and second half of the year.