Lee: Fourth Quarter 2021 Income Statement Review

03 March 2022, Mumbai:

Lee brand global revenue was $233 million, a 14 percent increase over the same period in the prior year on a reported and constant currency basis.

Lee U.S. revenue increased 13 percent compared to the same period last year, driven by improving sell through of new programs and increases in Digital.

Lee international revenue increased 14 percent over the same period in the prior year on a reported and constant currency basis. Other global revenue declined to $5 million driven by impacts from the strategic actions related to VF Outlet operations.

Gross margin increased 30 basis points to 42.8 percent of revenue, compared to the same period in the prior year. Adjusted gross margin decreased 60 basis points to 42.6 percent of revenue, compared to the same period in the prior year. 

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Structural margin improvements increased 80 basis points driven by favorable customer and product mix, as well as business model changes, which more than offset the impacts of inflation, inventory adjustments, and higher distressed sales.

Additionally, in support of strong demand, transitory expenses, which include air freight for expedited shipments, negatively impacted gross margin by 140 basis points in the quarter.

Compared to the fourth quarter of 2019, adjusted gross margin increased 170 basis points.

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*CREDITS:  Kontoor.